adminLISTED roofing and building products manufacturer Turnall has shifted to importing fibre from Russia as part of a strategy to reduce costs, management has said.
For the first quarter of the year, the group achieved revenues of $33 million, which was lower than the $42 million posted in the prior comparable period.
Turnall Holdings managing director Caleb Musodza said the group recorded a drop in revenue largely as a result of cost of imports in the local markets, hence the move to source the raw material from elsewhere.
“We’ve reviewed our procurement systems for cost effectiveness cash flow efficiency; importing fibre from Russia will reduce costs by 20 percent.
“We’re taking the advantage of Russia’s currency fall which makes cost of importing fibre cheap and the invoice is better than obtaining the same material from South Africa,” he said.
He added that the company for the past three months experienced loses due to limited importation of manufactured products and the company will increase the exportation of manufactured products to foreign destinations.
“To increase production, the group is scaling up exports to diversify market risk as experienced during the first quarter and currently loads of manufactured tiles and asbestos have begun to be exported to Mozambique and Botswana and to our foreign markets,” he said.
Musodza said the company is targeting to return to a profit position during both the half-year and at the end of the current financial year. – BH24.
Online Reporter