Almot Maqolo, Staff Writer 
PROPLASTICS says production volumes grew by 10 percent during the first quarter of 2023 compared to the previous period despite disruptions caused by power cuts, which also affected the sales product mix.
The piping products manufacturer recently highlighted that it had lost a month of production due to power outages.
In a trading update, the group’s chairman, Gregory Sebborn, said electricity supply remains the biggest challenge for the business going forward.
“The just-ended quarter was marred by serious power cuts, which significantly compromised production throughput and efficiencies.
“Production was largely run on a high-cost diesel-powered generator, thereby impacting on the price of the final product,” Sebborn said.
During the first quarter, the company’s revenue remained constant as its selling price declined as a result of a decline in the price of key raw materials globally.
“The revenue inflow was mainly skewed towards United States dollars,” Sebborn said.
This comes as the local unit continues to weaken against the greenback.
“The market continued to show inclination to settle transactions in United States dollars as opposed to the use of the local currency,” he said.
However, 15 percent of the company’s total sales revenue came from exports, an increase of 91 percent from the same time last year. The firm benefited from the auction system’s foreign currency allocations, which are essential for the smooth running of its operations.
“The business continues to participate on the foreign currency auction floor, with allocations amounting to US$600 000 having been received for the quarter, with US$400 000 already disbursed,” Sebborn said.
He said the raw material supply was consistent throughout the quarter.
“Raw material availability is likely to remain stable with the opening of world trade after removal of Covid-19 restrictions and the Ukrainian conflict not having a huge negative impact on supply,” he said.
In the outlook, Sebborn noted that demand will increase as a result of projects launched by the public and private sectors.
“Despite the drawback of the power challenges, the factory remains capacitated to convert all orders in time as a result of modern investments into the new factory,” he said.
The firm has made significant contributions to the growth of the plastics industry in Zimbabwe.
Its commitment to quality and social responsibility has earned it a loyal customer base both locally and internationally.
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