Chronicle Editor
Business Reporter
PIPES and fitting manufacturer, Proplastics, says an upsurge in demand for products from the mining and other sectors is set to increase productivity as it is also eyeing regional opportunities.
However, foreign currency available limitations at the official auction platform will be a factor as current allocations are well below the Group’s requirements, group chairman, Mr Gregory Sebborn said.
In a statement of financials for the year ended December 31, 2021, Mr Sebborn said the new 500mm line, which has since arrived and is already under commissioning will address the demand for large bore PVC diameter pipes.
He said demand for this product was on the rise and significant orders have already been received prior to commissioning.
“It’s expected that demand for the Group’s products will continue to firm buoyed by the various sectors of the local economy. There is an upsurge in demand, especially from the mining sector as well as other sectors,” said Mr Sebborn.
“With the business and the general economic environment improving, and the recently constructed new factory and mixing plant fully operational, the focus is now on strengthening the Group’s working capital position.”
To that end, the Group is now well-positioned to capitalise on certain opportunities to widen its footprint in the region and efforts are underway to investigate in detail these potential initiatives, Mr Sebborn noted.
However, he added that the optimisation of the Group’s working capital, in particular raw material stocks, will depend on foreign currency available on the auction platform as current allocations are well below the Group’s requirements.
“The Group has maintained sound relationships with suppliers, but there is risk of straining these if allocations remain inadequate and the settling thereof experience delays.
“The Reserve Bank of Zimbabwe has recently provided some assurance that the auction backlog is to be significantly reduced and the auction made more relevant to the requirements of the market,” he said.
Despite operational challenges encountered, Mr Sebborn said demand for the Group’s products remained strong during the year and as a result, the performance showed solid growth in volumes over the prior year.
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