Turnall Holdings (Turnall) says it is finalising the procurement of a fibre-cement sheeting plant and a Glass Reinforced Plastic (GRP) pipe plant this year in a bid to expand its product portfolio and return to profitability.
In a trading update for the first quarter ended March 31, 2023, Turnall’s board chairman, Grenville Hampshire, said the new initiative was set to increase production capacity.
“The acquisition of a new fibre-cement sheeting plant is underway and it will be commissioned in Harare during the first quarter of 2024. This will result in significant increases in manufacturing capacity and production efficiencies as well as improved cost savings, which will impact positively operating profitability,” he said.
Hampshire said procurement of a GRP pipe plant would enable the group to service the fast-growing market for large-diameter GRP pipes in Zimbabwe and the region.
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For the period under review, Hampshire said sales volumes declined by 11 percent compared to the comparative period last year.
“This was mainly due to product outages caused by supply chain disruptions in respect of imported raw materials which are normally obtained from Russia.
“Efforts are underway to widen our supplier base to mitigate this risk. Building products, pipes and concrete products contributed 62 percent, one percent and 37 percent of the tonnage sold respectively,” he said.
For the first quarter, the group’s profit margins remained under pressure due to the increasing cost of doing business.
As part of the group’s cost containment measures, Hampshire said Turnall continued to engage suppliers for better terms and prices.
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