Zimtile embarks on recapitalisation

Business Reporter
PG Industries subsidiary Zimtile has embarked on a massive recapitalisation and expansion programme that will enhance efficiency and see production more than doubling at its Harare and Bulawayo plants.
Zimtile managing Mr Tawanda Muindisi said expansion of the Bulawayo plant had been completed and the plant commissioned last October.
The Bulawayo plant used to produce 10 000 tonnes a day, but following recapitalisation and capacity expansion output has risen to 24 000 tonnes.
He said capacity expansion at Bulawayo was funded from internal resources at a cost of US$1 million. Recapitalisation and expansion of production capacity at the Harare plant is expected to cost more.
Expansion of capacity at Zimtile’s Harare plant would result in output rising from the current 17 000 tonnes per day to 35 000 tonnes per day.
“We are in the process of acquiring modern plants and this will more than double production capacity. We are also coming in with new profiles, and customers will be able to choose from different shapes of tiles,” he said.
Mr Muindisi said the expansion would also result in the introduction of a variety of tile colours and designs that excite the market, and to that end the quality of the product and production efficiency would be greatly enhanced.
Zimtile is the country’s biggest manufacturer of tiles, bricks and pavers. The building materials, produced in Bulawayo and Harare, are all concrete based.
Mr Muindisi said the recapitalisation of the Harare plant, to enhance efficiency and ramp up production, would be completed by July this year.
The Zimtile boss said the firm sought to invest in the latest state-of-the-art technology to increase productivity and significantly improve efficiency.
On completion of the capacity expansion programme Mr Muindisi contends that overall capacity utilisation would rise to an average of 70 percent.
He said they expected improved efficiency would result in lower production costs, which would see Zimtile cutting prices on its products.
Zimtile embarked on capacity expansion and investment in the latest technology in the wake of increasing competition on the domestic market, the need to explore new export markets and projected growing demand.
The firm is currently exporting to Botswana, Mozambique, Malawi and Zambia, but has at some point also done orders for customers in the DRC.
Raising production capacity and efficiency would also enable Zimtile to meet growing demand for its products as the economy recovers.
Mr Muindisi said since mid-2010 there has been a sustained increase in demand for its products from industrial and other commercial customers.
Small individual customers had sustained demand prior to that period, but now bigger industrial and commercial customers are coming on board.
Demand has improved significantly and is coming from mines, supermarkets, people doing housing clusters and housing flats among others.
Zimtile has supplied tiles, bricks and pavers to such projects as Homelink in Bluff Hill, Dandaro Village in Borrowdale, Harare Hospital’s new South Wing and the Zimbabwe Military Academy in Gweru, to name but a few.
The PG subsidiary was ISO certified in 2008 and the certification was a major development as the firm has set sights on expanding the export market. The Standards Association of Zimbabwe also certified Zimtile.
To demonstrate its commitment to preserving the environment Zimtile will now be going all out to get the environmental certification.
The firm works hand in glove with fellow PG subsidiaries such as PG Timbers and DST providing tiles, bricks and pavers alongside two other firms.
The good thing about Zimtile products is the fact that they contain synthetic oxides, meaning one does not need to repaint the products often.
Another advantage the products offer is excellent thermal and soundproofing and durability considering concrete matures with age. As a sign of confidence in their products Zimtile guarantee zero breakage on bricks. Zimbabwe’s leading tile supplier also offers its services on a “supply and fix” basis.
In fact, the firm recommends that when they supply they also be given the fixing job, as his ensures the best workmanship finish.
In an effort to remain the market leader, Zimtile has sent its staff abroad to learn the best systems in terms of product quality, production and efficiency.
While the firm has remained a market leader it has not been all smooth sailing as the firm has had to contend with the challenges of capital and power shortages.
Funding constraints were overcome through efficient use of internal resources at the Bulawayo plant, but shareholders will fund upgrading of the Harare plant.
The firm also faced challenges in terms of supply of sand, but it was positive alternative solutions to the problem will be found.
Zimtile has invested heavily in diesel generators for both the Harare and Bulawayo plants.