adminBusiness Reporter
Proplastics is failing to meet its targeted production capacity due to low demand on the market, a company official said. Proplastics, a subsidiary of Masimba Holdings, is operating at 33 percent and is producing 4 000 tonnes of plastic per annum against a target of 12 000 tonnes. In an interview with The Herald Business yesterday, Proplastics managing director Mr Kudakwashe Chigiya said low aggregate demand is taking a toll on the company’s performance.
“The company is failing to meet the targeted capacity due to low disposable income among the clients, in addition to low aggregate demand. Masimba Holdings has invested about $2,5 million in the company since dollarisation. The money went towards retooling and refurbishments of the existing plant.
Mr Chigiya said the company is expecting a new High Density Polyethylene HPDE (HDPE) plant by the end of June this year as Masimba holdings strongly positions the division to play a leading role in the agriculture and mining sectors in Zimbabwe and the region.
“This year we have ordered a new line from Germany worth $700 000 that will manufacture black pipes. As a company we think it is fundamental for the company to commit funds towards upgrading the existing plant and retool where necessary,” he said.
Online Reporter