Zimbabwe-based Hunyani has announced plans to invest $3.1m in capital projects in 2012 as part of a rationalization and restructuring exercise to improve group profitability.

Hunyani finance director Francis Dzingirai told businessdigest that by the financial year end 2012, the company would invest in generators and a case maker at its corrugated products and printopak divisions.

The investment in generators is expected to deal with high incidents of power cuts which affected production volumes and depressed margins in both the divisions.

The company also plans to dispose of its Botswana waste collection business and use the sale proceeds to finance capital projects. Disposal of the business followed the closure of Hunyani’s paper mill in Zimbabwe, which witnessed depression in operations.