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Nelson Gahadza
Business Reporter
Brick maker, Willdale Limited says efficient energy management is crucial to its manufacturing processes, as such, the group is planning to migrate to solar energy.
The company, in its 2023 annual report book, said it relied on electricity, diesel, and coal; however, intermittent power outages continue to impact throughput. On the other hand, diesel and coal result in increased energy costs.
“Due to the challenges of fossil fuels and electricity supply shortages, we are exploring cleaner energy sources and new technologies for brick firing. Our goal is to improve energy efficiency and reduce our environmental impacts,” the company said.
Willdale said that by embracing sustainable practices, it aimed to overcome energy supply challenges and ensure continuous production while minimising reliance on traditional energy sources.
“To optimise energy efficiency, our system closely monitors the quality of energy sources like coal and diesel.
“We strive to ensure high-quality energy inputs that contribute to improved efficiency and reduced waste,” reads part of the annual report.
The company said the transition to solar energy was projected to reduce its energy consumption by 5 percent, further minimising its environmental impact.
“By implementing these strategies and embracing renewable energy sources, we aim to enhance our overall energy efficiency, reduce consumption, and contribute to a more sustainable future,” Willdale said.
Group chairman Mr Cleophas Makoni said the company was exploring various options to enhance plant capacity in the short term and intended to leverage its existing assets to source appropriate funding to ensure consistent brick supplies during the rainy season to satisfy growing demand.
Demand for bricks was relatively high throughout the year under review, driven by housing development, the construction of educational facilities, and shopping centres.
The company is utilising its idle land as part of efforts to raise capital to acquire the latest manufacturing technology at an estimated cost of US$3 million.
“The company has approximately 165,6 hectares of land in Mt Hampden, an area that is fast developing owing to the new Parliament Building and the new city located nearby.
“This has presented an opportunity to develop the land into residential, commercial, and industrial stands,” Mr Makoni said in a circular to shareholders recently.
He said developing the land would result in the company achieving a significantly higher value for the land compared to its current valuation of circa US$2,95 million.
“The proceeds from the development will then be channelled towards the acquisition of a new plant to make our bricks of higher quality and enable the company to compete effectively locally and in the region,” said Mr Makoni.
Furthermore, the company has excess idle land in Christmas Gift, Gweru, measuring approximately 12,6 hectares, bringing the total land available for development to about 178,2 hectares.
Similarly, in 2017, the company disposed of part of its land for $11 million, with the proceeds utilised towards servicing debt and settling preference share obligations.
Mr Makoni said the proceeds from the development will then be channeled towards the acquisition of a new plant, making the company’s bricks of higher quality and enabling the company to compete effectively locally and in the region.
“The company’s current manufacturing plant only allows for seasonal production of bricks, with full-scale production happening between March and November, while the production plant is shut down for up to 3 months from December to February each year because of the need to use natural sunlight for drying bricks before they are fired.
“This effectively means that there exists scope for the company to optimise its production capacity by mitigating the downtime occasioned by the aforesaid seasonality,” he said.
The chairman highlighted that technology is available to enable all-year-round production of bricks, and such technology involves the use of tunnels, rotary dryers, and kilns.
“The company intends to acquire and install a plant with a rotary kiln and dryer to enhance its production capacity,” he said.
According to the circular, the proposed manufacturing technology benefits include reduction of production waste, production cost, and production being all year round rather than seasonal.
Other benefits include an environmentally friendly production process and international competitiveness.
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