Sundaymail Editor
Business Reporter
PROPLASTICS, a pipes and fittings manufacturer, expects improved performance across all its business segments, driven by increased private sector investment in infrastructure projects and the Government’s strong focus on irrigation development.
This bullish outlook comes as the Government actively undertakes various initiatives to develop and expand irrigation projects countrywide.
These projects aim to significantly enhance agricultural productivity, bolster food security and stimulate overall economic growth.
Through the Accelerated Irrigation, Rehabilitation and Development Plan — a collaborative effort between the Government, development partners, companies and banks — a target of 400 000 hectares has been set.
This includes the rehabilitation of 71 000 hectares (26 000ha for smallholder irrigation schemes and 45 000ha on A1 and A2 farms) and the development of 183 000 hectares of new irrigation infrastructure.
Proplastics is strategically positioned to capitalise on these projects.
Irrigation is now widely recognised as crucial for ensuring consistent agricultural output, reducing reliance on rain-fed agriculture.
The private sector is also making significant investments in irrigation infrastructure and advanced technology, thereby empowering farmers to achieve improved crop yields and more efficient water management.
Further, Proplastics expects continued strong demand for its diverse range of products within the civil construction industry, fuelled by the Government’s ongoing infrastructure development projects.
The company’s comprehensive product portfolio, encompassing polyvinyl chloride (PVC), high-density polyethylene (HDPE) and low-density polyethylene (LDPE) pipes and fittings, caters to a wide array of applications across irrigation, water and sewer reticulation, mining, telecommunications and construction sectors.
“With an improved operating environment, the business expects stronger performance across all segments, driven by increased private sector investment in infrastructure and the Government’s focus on irrigation projects,” said Proplastics chairperson Mr Gregory Sebborn in the full-year financials to December 2024.
“The civil construction industry has maintained a high demand for our products, which we expect to continue into the new year.”
In 2024, the company’s turnover dropped 3 percent to US$20,6 million, compared to US$21,3 million a year earlier.
This, however, was notwithstanding the 5 percent increase in overall sales volumes.
The decrease in turnover was primarily attributed to shifts in the product mix and implemented pricing strategies.
Export sales contributed 4 percent to the total turnover, impacted by cost-related challenges stemming from the 25 percent foreign currency surrender policy, coupled with the limited availability of foreign currency on the formal market.
According to Proplastics, the mandatory foreign currency surrender ratio for exports increased to 30 percent, further hindering competitiveness in the export market.
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