Chronicle Editor
Nqobile Bhebhe
FARM implements manufacturer, Zimplow Holdings Limited, has set up a new business unit, Tractive Power Solutions (TPS), to cater for the exit of its Barzem unit from the Caterpillar (CAT) distributorship.
The group plans to regain the targeted market share in earth moving equipment, parts and service supply to its diverse customers.
The distributorship arrangement was established over 70 years ago and Barzen exited late last year.
According to Zimplow’s financial results for the year ended 31 December 2022, the company said given the experience in CAT, the group is committed to providing a superior service from single unit owner, to large fleet operators.
“TPS is establishing itself as the go-to partner for technical solutions such as repair and maintenance contract (or onsite solutions) for huge fleet owners, as well as workshop solutions given the group’s expansive back infrastructure,” said the company.
It noted that getting the newly introduced business unit to gain the targeted market share in earth moving equipment, parts and service supply to customers was strategic.
The firm said it has evolved from ZEMCO, Barzem and now TPS to cater for Zimbabwe’s earth moving requirements.
“We have the capacity in terms of infrastructure, people, and access to capital. Given the experience in CAT, the group is committed to provide superior service from single unit owner to large fleet operators.
“During the transition from Barzem to TPS, the group has secured affiliations and accreditations with key suppliers to be able to continue looking after our major customers’ huge fleet from an earth-moving equipment perspective,” said Zimplow.
“This has assisted the business unit to secure service level agreements, repair and maintenance contracts with some of the huge fleet operators – amassing the scale in short space of time, required to provide effective supply chain solutions and cost-effective maintenance strategies.”
According to the company, the discontinuance of Barzem operations resulted in group profitability swinging from an operating profit position to a loss before tax of $1 billion, caused by provisions recorded of $7,4 billion.
From the $7,4 billion, stock write-downs accounted for $6,4bn, exchange losses ($0,5bn), and retrenchment costs amounted to $0,5bn.
However, the board is following through on protecting shareholder value by acquiring Barloworld’s 49 percent shareholding in Barzem at a discount in line with the remedies provided in Barzen’s shareholder agreement, it said.
Online Reporter