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Tapiwanashe Mangwrio Senior Business Reporter
Zimbabwe Stock Exchange (ZSE) listed construction products manufacturer, Turnall Holdings, last yaer sunk $622,5 million into expanding manufacturing capacity and production efficiencies across its operating units..
In 2022, Turnall spent $60,2 million on similar capital projects. According to the firm, this was mainly aimed at improving production efficiencies.
Grenville Hampshire, Turnall’s board chairman in a statement accompanying results said, “Despite the challenging business environment, the group has embarked on a major capital expenditure programme aimed at restoring fibre cement production in Harare and introducing production of glass reinforced plastic (GRP) pipes in order to take advantage of this fast-growing local and regional market.”
He said the production of inverted box rib (IBR) sheeting would be expanded and the roof tile line would also be refurbished. The company is currently making a significant investment in its Bulawayo plant aimed at the production of New Tech Fibre cement sheeting mainly for the export market.
“The completely new sheeting line for Harare will utilise the latest technology with the aim of improving production efficiencies and reducing costs,” said Mr Hampshire.
The company said although payments for these projects will largely be made in 2023, the main production lines are expected to become operational in 2024.
Mr Hampshire said, “The board and management are confident that these investments will deliver substantial benefits including increased revenue and profitability, an increase in exports and a sustainable improvement in quality and production efficiency.”
An AC plant valued at $798,9 million was impaired during the year and will be replaced by the latest state-of-the-art plant, which will be commissioned in Harare in 2024 as part of the company’s recapitalisation programme.
Turnall generated cash from operating activities amounting to $592,4 million representing a 2 percent decrease compared to the same period last year. The company continued to invest in working capital in order to preserve value in this hyperinflationary environment.
The company had no borrowings during the period under review and all capital requirements were funded from internally generated resources.
Turnall operates in a number of segments, building products which includes ceiling boards and roofing sheets, partitioning and fascia boards, flat sheets and ceiling molds; piping products which includes water and sewer reticulation pipes, and concrete products which include roof tiles.
Also produced by Turnall are a line extension range that includes Turnallware flowerpots and garden décor products, Nutech non-asbestos sheets and Spanish pavers.
Fiber cement division targets the low-income housing sector, local authorities and municipalities through two divisions, Turnall Building Products and Turnall Piping Products. The group has distribution outlets in Zimbabwe, South Africa, Mozambique, Zambia and Malawi.
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