Almot Maqolo, Staff Writer 
CONVEYOR belts supplier, General Beltings Holdings says it wants to focus on consolidating market share in energy and cement manufacturing sectors amid strong headwinds in mining set to affect downstream demand for its products.
The mining sector is a key market for the group which also supplies chemicals.
The group anticipates that demand for its products will decline as a result of the declining prices of minerals, which have already led to some mining companies cutting labor expenses.
This follows a marginal drop in total volumes-a key indicator of demand, which fell 2,5 percent to 921 metric tonnes in the year ended December 31, 2023 from 944 metric tonnes previous year due to lacklustre demand in the economy.
“These developments would in turn negatively affect the company’s downstream demand for its products. In response to the above, the company expects to consolidate its market positioning in the energy and cement manufacturing sectors in addition to the other non-Platinum Group Minerals as envisaged in the National Development Strategy 1 which is underpinned by the growth in the mining sector,” GB Holdings’ chairman Godfrey Nhemachena said in a statement accompanying the results.
“Existing and new strategic partners being pursued are expected to strengthen market positioning in new market niches,” Nhemachena added.
The group suffered an inflation adjusted loss of $108,87 million from a profit of $504,83 million in 2022 which was also attributed to increased operational expenses.
The group’s operating costs rose 150 percent to $15 billion in 2023, compared to $5 billion in 2022 which was due to the effects of inflation and dollarized quasi institution costs.
Total volumes at the rubber division declined marginally to 378 metric tonnes from 379 metric tonnes.
“The division defended its market positioning through improved process efficiencies and timeous deliveries,” he said.
At its manufacturing unit, Cernol Chemicals, volumes were up 36 percent to 543 metric tonnes compared to 397 metric tonnes in 2022, as its traditional markets were yet to recover from the Covid-19 effects that lingered on.
“Cernol Chemicals is expected to consolidate its efforts in traditional market recovery as new models of hospitality offerings evolve. Existing and new strategic partners being pursued are expected to strengthen market positioning in new market niches,” Nhemachena said.
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