- Vast improvement in operational efficiencies is expected
- The Group has managed to clear all production backlogs
- Exports drive expected to grow volumes and generate forex
Harare – Proplastics, Zimbabwe’s leading plastic pipes and fittings manufacturer forecasts an improved volumes performance following the completion of its new factory.
In a statement accompanying the Group’s financial results for the year ended 31 December 2019, Proplastics said the new factory is now complete and operational while it awaits commissioning which had initially been set for the second half of the 2019 financial year.
The new bigger plant which was initially earmarked for completion within the first 10 months of the 2018 financial year could not be completed again within the revised target of first quarter 2019 due to forex challenges in Zimbabwe.
“As envisaged when the Group embarked on this project, we expect a vast improvement in operational efficiencies thus enabling us to serve both the domestic and export markets more effectively”, the Group Chairman, Gregory Sebborn said.
Proplastics’ successful migration to the new factory enabled it to clear all production backlogs by end of the first quarter and they expect the demand for the Group’s products to improve slightly as infrastructural development continues in both Government and the private sector.
The Group also believes the need to mitigate against the effects of drought will also help improve volumes in certain product lines.
The current exports drive is further expected to help grow the volumes and generate the much-needed foreign currency.
In FY 2019 demand for the Group’s products remained subdued, mainly as a result of the difficult trading environment that the country is facing which has resulted in the erosion of our customers’ purchasing power.
The new factory is expected to increase the company’s production capacity to 32 000t a year from 8 000t which is a fourfold increase.
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