Border Timbers resumes operations

Mutare.
The company stopped operations after arson fires destroyed some parts of the plant. An official yesterday said that the plant was now in full swing.
“We recently made an announcement to shareholders that our industrial plant in Mutare was destroyed by fires which originated outside our factory. We have, however, managed to do repairs and our pole treatments plant is fully operational,” said an official with the company.

The official said despite the suspension of the plant, the company managed to fulfil its orders after entering into supply agreements with “third parties”.
Border Timbers supplies poles to local, regional and international markets.
Last year, the company indicated that it had lost about 70 000 hectares of planted area due to arson fires.

“While the area damaged is significantly lower than that of the prior years’ fire season, it should be noted that the fundamental cause of the fire is yet to be addressed.”
Border Timbers expects to spend US$2 million annually over the next three years on new planting. During the first half of 2010, the company spent about US$1 million on silviculture operations.
Total roundwood production was higher due to the investment of US$1,7 million in plant and equipment and plans are underway to invest another US$1,3 million by year end.

Capital expenditure of US$350 000 at Border Timbers International should see output improve and demand remaining high during the period under review.
Production is forecast to increase in the full year to 2011 to 8 450 cubic metres compared with 6 797 cubic metres in the full year ended 2010.
Border is carrying out a capital expenditure programme to retool its factories but the shortage of medium-term finance has constrained a faster roll out.

Tightly held Border has over 99 percent of the shareholding controlled by the Schofield and Von Pezold families and there are only 181 shareholders only.
Trading Border shares is occasional and throughout last year there were only 29 trades.
On the bourse yesterday Border plunged a hefty US25c to close at US30c.