The Government of the Republic of Zambia (GRZ), through the Zambia Privatisation Agency (ZPA) wishes to introduce a Strategic Partner for a controlling equity stake of up to 100% in Nitrogen Chemicals Zambia Limited (NCZ). Government is open to considering other innovative financing arrangements as may be proposed by the private sector and acceptable to GRZ (the "proposed transaction"). Interested party(ies), either individually or as a consortium, may submit their Expression of Interest to ZPA.
The principal activity of NCZ are manufacture and trading of Explosive Grade Ammonium Nitrate, Chemicals Fertilizers, and Industrial Chemicals. It is also engaged in trading of the manufactured products. The company was incorporated in 1967 and comprises three complexes as follows:-
Zambia enjoys an ideal climate for fertilizer manufacturing and has more advantages than disadvantages over it's immediate neighbours. The primary objective of privatisation of NCZ is therefore to promote a viable and competitive fertilizer manufacturing industry in Zambia. This has been demonstrated through Government's commitment to the development of agriculture and a number of policy initiatives related to fertilizer policy, are being undertaken. NCZ is well poised to take advantage of GRZ re-commitment to agriculture development.
NCZ has a workforce of 739 employees. The management and staff represent the bulk of the country's expertise in the fertilizer industry. Management act on behalf of the Board of Directors for the company. Most of the senior managers have been with the company for over ten years and are well qualified. Their experience is a valuable asset to NCZ.
The Company has a track record of harmonious and cordial industrial relations between the management and employees.
Historically, NCZ used coal as a base raw material in the production of Ammonia, Nitric Acid, Ammonium Nitrate for explosives and fertilizers. The company now imports ammonia for its production process. The company also produces Sulphuric Acid, and NPK compound fertilizer. The design capacities of the plant units are as follows:
| PRODUCTS | ||||
| Ammonia | ||||
| Nitric acid | ||||
| Ammonium nitrate for explosives and fertilizers | ||||
| Sulphuric acid | ||||
| Ammonium sulphate | ||||
| NPK fertilizer |
Most of the raw materials for the products of NCZ are found locally. Ammonia is produced from coal which is mined at Maamba Collieries (located 300 km from NCZ) through coal gasification process. The raw materials for Nitric Acid production are compressed air and ammonia while the raw materials for Ammonium Nitrate are Ammonia and Nitric Acid. Sulphuric Acid is produced from pyrites while Ammonium Sulphate is produced from Ammonia and Sulphuric Acid. The compound fertilizer NPK is produced from Nitrogen, Phosphorus and Potassium granules.
When fully operational, NCZ can command a large share of the market for its products. The following products are utilized in the domestic market; "C" Compound, Triple Super Phosphate (TSP), Muriate of Potash (MOP), Urea, "D" Compound, "X" Compound, Ammonium Nitrate, "R" Compound, "V" Compound and Ammonium Nitrate Dense & Porous Explosive grade. Sales to this market would potentially constitute 80 per cent of the company's sales volume. The company can produce dense Ammonium Nitrate and Sulphuric Acid mainly for the copper mining operations. An export market for Diammonium Phosphate (DAP), Solubar and fertilizers exist in Zimbabwe, Malawi and Democratic republic of Congo.
Due to lack of working capital, NCZ has targeted its marketing efforts on a few local entities and Government agencies. NCZ has also sought to reach small scale producers by introducing smaller packages of fertilizer which are sold through retail outlets. Major competition exists for the company from imported fertilizers considering the lack of financial capacity of NCZ to meet the requirements of the country.
NCZ also provides technical and engineering services and has capacity to undertake erection of heavy equipment, energy audit and safety audit service, design and monitoring of environment protection systems and training of technical manpower in operation, maintenance and safety management.
The financial performance of the company for the last three (3) years:
Year Ended 31st March...
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Expressions if Interest are welcome from technically and financially competent potential investors.
For further information about bid submission contact:
The Chief Executive
ZAMBIA PRIVATISATION AGENCY
Privatisation House, Nasser Road
P.O. BOX 30819, Lusaka, ZAMBIA
Telephone: 260-1-227851, 221866, 227791.
Telefax: 260-1-225270
E-mail: zpa@zpa.org.zm