Midiron deal with Superior

Published: 12 September, 2004

Zimbabwe footwear and leather products manufacturer, Midiron Enterprises have signed a US$20 million deal with Superior Leather Private Ltd, South Africa, to enable them to increase their export drive. Superior will take the bulk of Midiron's products for distribution to their already-established regional markets in Angola, Namibia, Ghana, Cameroon, Zambia and South Africa.

Midiron chairman, Nick Amira said: 'The deal could not have been signed at a better time as, at the moment, the country has embarked on a massive export campaign to bring in much needed foreign currency. We will also benefit in terms of procurement of our leather processing chemicals which are imported.

'At the same time, our domestic market was shrinking due to the consumers' eroded disposable income, while the influx of cheaper products from Asia has also seen demand for local products on the downslide', he said.

Under the agreement, Superior Leather will also inject capital; investment into the local company to expand their plants and tannery machines to boost their productivity, while the local company will also benefit from the human resource the foreign firm will bring in.

Midiron are a subsidiary of Native Investment Africa Group which is owned by Phillip Chiyangwa. There are four manufacturing divisions: G&D Shoes, Castilian Leather, Belmont Leather and Zimbabwe Tanning which produces finished leather from gameskins and exotic animals.

Printer friendly version

Email this article to a friend