Staff Writer 
PAPER and packaging company ART Holdings has projected improved performance for the coming year, underpinned by a group-wide restructuring strategy that includes scaling back operations in its paper division.
In 2024, the company faced significant challenges, particularly in the paper milling sector, which struggled due to raw material shortages and persistent power outages which negatively impacted all divisions but were especially detrimental to the paper segment.
To address these challenges and bolster resilience, the company opted to reduce production in the paper segment.
“The scaling back of production during the period to allow for optimisation of the new equipment and restructuring of the division had to be extended to the end of the year as it became apparent that the worsening power supply situation and unfavourable market conditions would persist into 2025,” group chairman, Thomas Wushe, explained.
He acknowledged that this decision came with significant difficulties, particularly given the limited cash resources available to the group.
He also noted the growing threat posed by technological disruptions in the paper-making industry, which could impact the company’s long-term sustainability.
Despite these challenges, Wushe emphasised ART Holdings’ commitment to leveraging partnerships to strengthen the company’s capabilities.
“We have identified partners to enhance our capabilities and technologies to support our innovation pipeline and talent base,” he said.
“Tissue converting and trading under the new partnerships commenced in the last quarter, with volumes expected to recover on the back of improved product availability.”
The company’s financial performance for 2024 reflected the tough operating environment. Revenue decreased by 11 percent, and export volumes
declined by 15 percent compared to the prior year.
This resulted in an operating profit of US$1 million but a pre-tax loss of US$1,5 million.
“The bold and defensive decisions taken to scale back investment in the paper
segment during the year resulted in significant losses in the paper division, after accounting for one-off restructuring costs and under-recoveries,” Wushe said.
Looking ahead, the company remains optimistic.
“The Board remains confident that the ongoing restructuring efforts and decisions taken will gradually strengthen the group and increase agility in seizing opportunities identified across all business units,” Wushe added.
The company’s focus on strategic partnerships and innovation signals a commitment to navigating current challenges and ensuring sustainable growth in the long term.
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