- Total volumes up 10%
- Rubber division volumes up by 78%
HARARE – General Beltings Holdings (GHB) reported growth in volumes for the year ended 31 December 2020 in spite of the COVID-19 induced lockdowns. Total volumes increased by 10% to settle at 698 metric tonnes owing to the improved flow of raw materials.
This compares to 636 metric tonnes recorded in the prior year.
In its recent financials, the company highlighted that volumes spiked at their rubber division by 78% to 301 metric tonnes compared to the 169 metric tonnes recorded in the prior comparative period due to improved offtake driven by the mining sector.
The rubber division supplies the mining sector which has been identified by government as key to the post-COVID-19 economic recovery plan and the company said its successful contribution to the recovery plan
According to the company, greater operational efficiencies and the consequent price competitiveness relative to import parity enabled the division to secure a consistent order book throughout the year.
As a result, divisional turnover increased by 120% to ZWL216 million compared to the ZWL 98 million reported in the prior year.
Meanwhile the chemical division, Cernol Chemicals volumes declined by 15 % to 397 metric tonnes compared to the prior year’s 467 metric tonnes due to the reduced demand attributable to the negative impact of the lockdown measures.
Nevertheless, the Division recorded a marginal decrease in turnover of 2,5 % at ZWL 118 million when compared with prior year’s ZWL 121 million due to a favourable product mix and new market niches.
During the last quarter of 2020, SMM divested its 43.22% shareholding in the Company. Jemaimah Investments came on board as the largest single shareholder with 43.22% taking over the SMM shareholding in the Company.
On the outlook, GBH highlighted that the expected bumper harvest and a satisfactory rain season is expected to stimulate growth in the downstream manufacturing sector thereby creating jobs and demand in the economy. Further, the inflow into major dams and water reservoirs is expected to resuscitate irrigation schemes leading to higher agricultural productivity and consequently leading to a relatively lower food import bill
GBH manufactures and distributes general-purpose and specialised reinforced conveyor beltings, and rubber and chemical products. Its product range includes rubber-covered belting, polyvinyl chloride (PVC) belting, light-duty PVC belting, solid-woven belting, transmission belting and conveyor belt rubber skirting. Its two major customers are Anglo-American Corporation and De Beers.
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