Seed Co set for new factory premises launch

Hybrid seed company Seed-co Malawi says all is set for the launch of its $10 million (about K4.9 billion) new factory, office complex and warehouse constructed at Kanengo opposite the Lilongwe Teachers Training College (TTC).

The company’s managing director Dellings Phiri told journalists in Lilongwe during a news conference that the launch will take place next Tuesday, November, 11 2014 at the site.

Phiri said since 2000, the company has been operating in rented premises but said the idea to have own premises was hatched in 2009 when the company acquired the land where it has constructed the new premises.

“This is a milestone and a landmark in the history of Seed-co Malawi. This project has taken us 22 months. We are happy that we continue to grow and we are a market leader in the seed business with a biggest market share,” said Phiri.

He said in 2011 the company conducted a ground-breaking ceremony for the new premises and that it was later in December 2012 when actual construction started.

Phiri said the new factory now has the capacity to produce 120 tonne of seed per day which is double the processing capacity of the company at the old factory.

“With this new factory, I can assure you that the quality of seed will greatly improve and the storage conditions for the seed will be of high quality and super,” he added.

He also said the new factory and office complex will enable the seed firm to scale up employment levels and boasted that already the company remains on top of all other seed companies in terms of job creation.

Quizzed on the company’s perception of a general business operating environment, Phiri bemoaned high borrowing costs in banks as one key factor affecting their business

“We entered the market when there were only two big seed companies and I am glad that we managed to emerge the biggest. We have passed through harsh economic environment and managed to translate such an environment into growth of our business,” he claimed.

It was earlier reported that the construction of the new factory would cut on rental costs by Seedco which were ranging around $400 000 per annum.

Seed Co Malawi Limited is a subsidiary of Seed Co Limited of Zimbabwe and the company also has footprints in Zambia, Tanzania, Kenya, Ethiopia, Rwanda, Botswana, Swaziland, South Africa and Nigeria besides other agency operatives in other African countries.