Kenrose Filters is currently finalizing its new shareholding structure as it recently secured an investor who will inject an undisclosed amount of capital into the business to boost productivity.

The fresh capital will be channelled into the entity once the new shareholding structure is put in place, a source privy to the deal disclosed.

"Yes there is a new partnership that is underway. It involves Kenrose, a local bank and an investor," said the source.

The source added: "The three players are currently finalising the new shareholding structure and I can safely say that the company is already operational."

Founder and managing director, Ken Dziruni declined to discuss the issue with the media.

Kenrose, which manufactures filters, was forced to close shop during the harsh economic period after facing stiff competition from cheap imported filters.

Although it reopened, it was grappling to regain its market share and improve productivity.

It is likely Kenrose will benefit from a plan by local car assembler, Quest Motors Corporation, to increase input from local manufacturers in its vehicles.

Quest Motors Corporation has already indicated that it is willing to procure filters from Kenrose as long as its products meet requisite standards.

Last year, Dziruni pleaded with government to give the company financial support.

"If government does not come in to assist us with funding we will have no choice but to dispose the company," Dziruni told Minister of Industry and Commerce Mike Bimha when he toured the company during a Confederation of Zimbabwe Industries annual congress held in Mutare.

He also indicated that a South African company called GUD had already approached them with the intention to acquire Kenrose for US$6 million.

Kenrose was established in 1990 with a workforce of over 100 workers.

In 1996, the company acquired an automated machine -- Three Stage Deep Drown -- from Germany at the cost of US$5 million.

The plant has the capacity to produce 1 000 filters per hour.

During its prime, Kenrose supplied filters to the National Railways of Zimbabwe among other major local firms. The company has 14 awards of excellence, six of which were availed by international institutions.