TURNALL Holdings says it is investing in a new state-of-the-art Glass Reinforced Plastic plant (GRP), which will enable the production of new tech pipes in high demand in local and regional markets.
This comes as Turnall reported a dip in volume in the pipes division as cement pipes continue losing market share due to a preference for the modern glass-reinforced pipes. In an annual report for 2021, Turnall managing director Zvidzayi Bikwa said the new pipe plant will mitigate the challenges with the current pipe plant.
“The new GRP pipe plant will serve all new housing and local authority sewer and water reticulation systems. The pipe will also be used for moving water from dams to local authorities as well as for irrigation purposes. It is a strategic export product in the SADC region and is the future of infrastructure pipes,” he said.
“Despite the uncertain outlook and the increasingly complex trading environment, the group remains focused on negating these impacts by driving volumes, ensuring pricing remains competitive, closely managing operating expenditure, and managing working capital positions in the technological changes in pipe production and production complications where a certain quantity must be produced per run.
“Most of the pipes produced during the year under review were for repairs and maintenance. Organic production of fibre and cement pipes is quickly losing market share due to a preference to the modern technology pipes,” he said.
Turnall chairman Bothwell Nyajeka said the group is prioritising recapitalising plants, improving production efficiencies, and reducing production costs.
“The group is also commissioning a GRP pipe plant which will diversify its range of pipes. The new large-diameter pipe plant should play a critical part in the government’s plans to both create manufacturing jobs and improve water supplies to the country.
“The new plant will also reduce the country’s requirement for scarce foreign currency by replacing imported pipes with local production and provide a solid base for new export opportunities into the region.”
Nyajeka said the group targets to invest in a new plant and resume production of roofing sheets in Harare.
“This will augment the Bulawayo plant in line with increasing demand for the company’s products while improving customer service, further and reducing Turnall’s costs of shipping finished products to its largest market,” he added.
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