Astra seeks to recover costs

and chemical manufacturer Astra Holdings, resulting in rising production costs.
Hyperinflation experienced over the past decade saw the construction sector shrinking as it became difficult to access funds to finance major projects both in the public and private sector. Astra Industries group managing director Mr Mackenzie Mazimbe said the two challenges had adversely affected its steel business.
“The biggest challenge facing the steel business is lack of major construction projects on the local scene,” he said.
Mr Mazimbe said the company had since started exploring other options to boost business in the steel making subsidiary.
“We are now looking at altering and having a slight shift in our business model to see how we can recover production costs. We are looking at enhancing trade besides waiting for big construction projects to come up,” he said.
“The other subsidiaries are performing better and we expect the sales to continue improving in the second half of the year especially in the paint division, which usually sells better after the rainy season,” he said.
Mr Mazimbe said the company was presently operating at 40 percent capacity utilisation. He said the group had sufficient funds to inject in their subsidiaries in order to enhance operations.
“We have managed to acquire a US$1 million loan but should we require more we will borrow more,” he said.
Mr Mazimbe, however, bemoaned the high interest rates and tenure of loans available. Astra Industries makes and sells paints, surface coatings, chemicals and steel. – New Ziana.