Over 100 workers at Eagle Glass Manufacturing Company in Kapiri Mposhi have been declared redundant after management announced the closure of the glass manufacturing factory barely one year of operation.
The company has closed down and terminated contracts for all its employees citing dwindled business activity affected by an influx of cheap glass imports on the Zambian market.
Eagle Glass Managing Director, ZHI ZHAO has confirmed the development to ZANIS saying the company was also experiencing a decrease in sales of its glass products due to the impact of the Coronavirus and the constant break down of its glass production line.
“We cannot cope with the pressure in the market because of cheap glass products imports and the impact of the Coronavirus,” Mr ZHAO said.
Mr ZHAO said the company has already prepared funds to pay gratuities and a month’s salary for all the workers who have been declared redundant.
Mr ZHAO assured that the company will resume operations once the business activity improves on the local market and when repairs are done on its production line.
“We are going to pay all the workers and they will be re-engaged once we resume operations in the near future,” Mr ZHAO said.
Last week, employees at the factory protested over reports the company intended to close down and lay them off without being paid their dues.
Meanwhile, District Commissioner, Smart Mwila has regretted the closure of the company which provided over 100 direct jobs for the locals.
“The opening of Eagle Grass last year was a breath of fresh air in terms of employment and the economic status of the district,” Mr Mwila said.
Mr Mwila has however commended Eagle Glass management for ensuring that redundant workers are paid their dues before laying them off.
Production at the US$15 million glass factory with annual production capacity of up to 50,000 tonnes of flat and laminated glass commenced in 2020.
FILE PICTURES OF THE PROMISE IN 2018
AND WHERE ARE THOSE CHEAP IMPORTS FROM ?? CHINA
WITH A FAILED ECONOMY PEOPLE NEED CHEAPER GOODS
“…..due to the impact of the Coronavirus and the constant break down of its glass production line.”
The headline and what’s in the article is not corresponding …where is the proof that this China man even invested $15 million this is what happens when you are pleading to foreign investors, this guy must have just calculated that its cheaper to import from his cousins in China than manufacture I mean its not like Zambia started importing today he knew about it.
I don’t understand how this is happening given the extent of kwacha depreciation against hard currencies. Local glass should be much cheaper.
This is a sad development but the owners of the company have cited the cause of closure as follows: Influx of imported cheap glass, constant break down of the production line and covid-19 impact. So is not making sense but the main cause could be constant break down of the production line which may have contributed to loss of customer confidence. Investors could have brought old and outdated production line. However the govt through ministry of Commerce and Industry should come up with mechanism to protect local industries.
Surely this is sign that business is tough in Zambia when the Chinese company feels the impact.
Nemwine – Cost of production in Zambia is too high add load shedding to that and you have problems especially in Glass manufacturing where high temperatures are involved…just imagine if a small bakery can not cope what of this commercial plant!!
Government continues to ensure all the workers are paid their dues. I am engaging with the workers to see who I can employ within my companies. This is what we do as citizens . We help each other out, not just criticising from your bedsit abroad and yet there is nothing you have achieved or done for your people back home. Eff off
But this is business in a global village. You have to be strong to compete. No one is going to give way for you alone to make money.
You needed to innovate and give your competitors a challenge in the market.
It should have been GRZ opening up a glass and bottle manufacturing plant in zambia.
All wiskey, brandy, mosi , fanta and coke bottles are imported. All window panes imported…..
Imagine the savings in forex and the job creations if zambia manufactured glass and imposed high customs on imports ????
The South African and Chinese glass manufacturers are loving this lazy , useless GRZ lead by lungu.
Totally useless leadership.
It should have been GRZ opening up a glass and bottle manufacturing plant in zambia.
All wiskey, brandy, mosi , fanta and coke bottles are imported. All window panes imported…..
Imagine the savings in forex and the job creations if zambia manufactured glass and imposed high customs on imports ????
The South African and Chinese glass manufacturers are loving this la.zy , usel.ess GRZ lead by lungu.
Totally use.less leadership.
It has been proven that a parastatal that employs say , 500 and just breaks even after wages is far beneficial to the country than having those 500 unemployed and importing the same goods those 500 could have made locally.. ……
Something this GRZ does not understand.
GRZ should have invested in a glass manufacturering plant……
so mu zambia nothing really works? vonse vinavuta
So even the Chinese who flood markets with cheap products have realized just how difficult policies in Zambia are when you try to do business in Zambia… go figure! Unga chaye iyo!!!!!
THE WIND OF CHANGE IS BLOWING THROUGH ZAMBIA !!!!!!!!!!!!!!!!!!!!!!
GUNDIXY – These Chinks just go to China Bank and say they want to invest in Africa and its in their account….no business man would invest that much without studying the market.