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Forestry and saw milling company Border Timbers said on Wednesday a combination of power outages and machine breakdowns hit on its production for the quarter ending September, 2019 which slumped to 17 986 cubic metres from 19 776 cubic metres during the comparable period last year.
“Lumber production is lower compared to same period prior year due to low production at the Charter sawmill caused mainly by machine breakdown and power outages,” said judicial manager, Peter Bailey in a trading update.
“The low production had a knock-on effect on sales volume as this resulted in lower sales compared to prior year.”
Border Timbers was placed under judicial management three years ago after struggling to settle debts of around US$20 million.
Bailey said product demand remained high in the region with an increase in both production and sales anticipated in the next quarter.
Border Timbers’ exit from judicial management has been stalled due to delays in the settlement of a legal dispute in which the firm was awarded a US$125 million settlement.
“Discussions are continuing with the other party to the claim and with Government, but these have not yet been finalized,” said Bailey.
“Accordingly, the company will remain under judicial management for the foreseeable future.”
Trading in the company’s shares was suspended on the Zimbabwe Stock Exchange in November last year. — New Ziana.
Online Reporter