Art Corp eyes regional markets

Natasha Chamba, Business Reporter
LISTED industrial group, Art Corporation, will this year set aside $3 million for capital expenditure as it targets to increase the production of lead-acid batteries from 35 000 to 50 000.

The diversified manufacturing concern is also involved in the production and retailing of pens, stationery, tissues, hygiene products and forestry resource management.

In an interview last week, Art Corporation chief finance officer Mr Abisai Chigwecha said:

“The group is very confident in this investment and we have reached capacity to make 35 000 batteries. When we began in 2014 we were at 16 000 but our target now is 50 000.”

He said the timing of the investment was key and thus the company would continue watching the markets.

Last year, $2,2 million of Art Corporation’s capital expenditure was spent in battery manufacturing raising capacity to 35 000 from 16 000 in 2017.

Of late, the battery business has been driving the group’s performance, recording in excess of $32 million last year which was a 42 percent increase from 2017.

Mr Chigwecha said his organisation was also eyeing the regional market as that export market presented untapped opportunities.

“We are looking at the regional market. We think that there are untapped opportunities that are there. For instance, we have made significant exports of about $700 000 to Malawi,” he said.

“There were progressive discussions with Botswana which are expected to be fruitful although the market is not big.

“We had exploratory visits to Mozambique and Angola but in those markets we need entrance fees and that is what we are working on. If we can get the right products, we believe we can still export.

“Unlike other battery manufacturers, our strength is we manufacture our own raw materials.

“We are also seeing that the motor vehicle population in all the regional countries is rising and thus obviously the timing of the investments will be key. And we need to watch the markets as we go.”

In 2018, the group’s battery subsidiary, Exide Express, was supported by increased promotional activities that included the rebranding of the Mutare branches while Chloride Zambia continued to recover due to improved product availability and increased market presence.

— @queentauruszw