Sundaymail Editor
Online Reporter
Zimplow, a diversified construction, infrastructure and agricultural equipment manufacturer and distributor, says it will source alternative mining and infrastructure equipment following the end of its distributorship deal with Caterpillar.
The Caterpillar distributorship was implemented through Zimplow’s subsidiary Barzem, which has been the local dealer for 70 years.
Barzem will, however, exit the distributorship on September 30, 2022 on the back of changes in the strategic direction by both the supplier and Zimplow.
Group chief executive officer Mr Vimbayi Nyakudya said while the exit is expected to have an impact on the group’s revenue performance initially, management believes that the risk management protocols that have been put in place by the board and management will ensure the group preserves value and shareholder returns.
“We are working closely with Ministry of Transport, Mining, and Agriculture as our business is aligned to these key sectors of the economy and we want to ensure that we have the right equipment available for the market,” he said.
“Going forward, we do not expect the CAT exit to be such a big issue because some of the products we used to buy via Caterpillar are available locally, look at the oil, grader blades, the teeth, the tyres for earth-moving equipment, we are looking at engaging another supplier so as to reduce the gap.
“We will make sure we have the right capacity and equipment, skills and exposure needed so that we meet our customer needs and objectives in line with aspirations of the NDS1 (National Development Strategy).”
Online Reporter