Turnall to invest in new equipment to boost capacity

Michael Tome

Business Reporter

Construction material producer, Turnall Holdings, says it will invest in new equipment to boost capacity, as part of the company’s plans to resume exports into the regional market.

The investment in additional capacity forms part of the Zimbabwe Stock Exchange listed group’s restructuring and recovery programme, which started last year.

Turnall says it is optimistic about improved product supply and enhanced production efficiencies going forward as it pursues the regional expansion drive.

Last year, the firm invested $2,9 billion in capital programmes, directed mainly at improving production efficiencies.

According to Turnall, the recapitalisation programme will be focused chiefly on its core roof sheeting business in Bulawayo while some of the investment will be channeled towards enhancing manufacturing capacity at the Harare factory.

Plans are also afoot to invest in a Glass Reinforced Plastic (GRP) pipe manufacturing plant earmarked to be commissioned in 2025.

Turnall says GRP pipes are now the preferred product for large-diameter water pipes, and it looks to supply this range of pipes to support the ongoing infrastructure renewal projects in Zimbabwe and the region.

The growth initiatives being instituted by Turnall are expected to yield improved product quality, increased production capacity, and lead to the resumption of export sales.

Turnall has been in the doldrums in recent years, having faced disruptions in asbestos fibre supply, which stemmed from the impact of the Eastern Europe conflict between Russia and Ukraine. Due to the conflict, lead times increased to as long as six months, resulting in intermittent production runs and shortages of the company’s ­finished products.

However, the Group has since secured alternative sources of fi­bre and supplies normalised towards the end of the fourth quarter of 2023 and adequate fi­bre that is expected to take the group through the 2024 fi­nancial year has been secured.

“The group is committed to returning to the regional export market and a signi­ficant investment in new equipment to convert the Bulawayo sheeting plant to non-AC production for the export market will come on stream in the second quarter of 2025, following the commissioning of the new sheeting plant in Harare in the first quarter of 2025.

“Turnall remains committed to the implementation of an ambitious recovery plan which involves the introduction of a new modern production line in Harare for roofi­ng sheets, extensive modifi­cations to the Bulawayo sheeting plant, and a major investment in new templates and spares aimed at reducing costs and increasing output from the Harare concrete tile plant,” said Turnall board chairman Mr Grenville Hampshire in the group’s 2023 annual report.

Mr Hampshire said maintaining high standards of product quality remains Turnall’s key priority.

As such over US$2 million worth of spares and equipment are expected to start arriving in Bulawayo in the second quarter of 2024 to reinforce initiatives directed at attaining production efficiencies.

Turnall managing director Mr John Mkushi, “The tile plant will be recapitalised with new additional templates which will boost output from the current 25 000 units per day to 40 000 units by the end of the 2024 ­financial year. “

As it stands the civil works for the installation of the new Harare sheeting machine (with a capacity of 210 tons per day) are in progress.

However, like most businesses, Turnall is expecting the country’s economic situation to be tough on the back of a poor agricultural season as a result of the drought and declining commodity prices on the global markets.