Emmerson Njanjamangezi, Group Features Editor 
LEADING packaging products supplier, Nampak Zimbabwe Limited (Nampak), says global supply chain bottlenecks and increased competition for available plastic and paper raw materials are disrupting the company’s manufacturing operations.
In a trading update for the year ended September 30, 2021, Nampak managing director John Van Gend said difficulties in accessing raw materials affected the group in the period under review.
“The quarter from July 1 to September 30, 2021 was dominated by difficulties in accessing adequate foreign exchange and raw materials. Global supply chain bottlenecks and intensified competition for available plastic and paper raw material negatively affected the group’s raw material stock holding,” Van Gend said.
According to Van Gend, the worsening power cuts affected the group’s manufacturing division, a situation which was also compounded by foreign currency access glitches at the central bank’s foreign currency auction.
“During this quarter, the easing of (Covid-19) lockdown measures continued to benefit the group’s operations. Load shedding was re-introduced in the fourth quarter, which disrupted our manufacturing operations. Despite these challenges, the group’s operating companies remained profitable,” he said.
Van Gend also said that in the period under review, the group’s revenue was significantly up in all three operating units on the back of volume growth and inflation-induced price adjustments.
“The sale volumes for the full year improved by 23 percent compared to the prior year. The improvement was due to firm demand for commercial cartons and labels divisions.
“Growth in tobacco cartons was higher on the back of improved tobacco crop but was curtailed by raw material supply constraints in the fourth quarter. Regional exports were marginally lower,” he added.
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