Local newspaper publishers have turned to South Africa for newsprint after the local newsprint manufacturer Art Holdings closed down its mills in December, citing viability problems as well as the need for refurbishments.
In a statement this week, Art Holdings chairman Passmore Matupire, said: “The Mutare Board and Paper Mill factory was closed in December 2008 in order to contain losses that had arisen from inadequate pricing of newsprint. The mill requires US$1.5 million in order to restart operations.”
Work of the refurbishment had already begun, but the plant could only resume operations at 60% capacity once working capital was in place, “supplying the Zimbabwe and regional markets at competitive prices”.
However, Mutasa said his group would be meeting Mondi management to seek increased supplies next week, saying he hoped a deal would be reached on the basis of their improved credit rating. He said with increased newsprint supplies, daily sales for their flagship daily could go up to between 65 000 and 80 000 daily.
