Proplastics in $1,2m investment

HARARE - Plastic pipes and fittings manufacturing firm — Proplastics — has invested over $1,2 million for a new machinery aimed at improving operational efficiency. 

The Zimbabwe Stock Exchange-listed company’s chief executive, Kudakwashe Chigiya, yesterday said the equipment, which is part of the plant replacement and modernisation programme that began in 2010, was expected in the country within the next two months.

“The production for one of our product lines plant is now sailing and we are on course to having it commissioned early in the second half of the year. 

“The arrival of this machine should see the improvement in the operational efficiencies in the factory,” he said.

Chigiya, who decried the worsening economic situation in the country, noted that the recent measures introduced by the central bank to deal with the present cash-crisis will significantly hamper operations.

Trading conditions have deteriorated further following the recent pronouncements by the Reserve Bank of Zimbabwe which indicated that 50 percent of all export proceeds will be transferred to the central bank and returned as Real-Time Gross Settlement Systems,” he told shareholders at the company’s first annual general meeting in Harare.

“This will have an adverse effect on our business as 80 percent of the exports proceeds are required for funding the import of raw materials. As we speak, business is at a standstill as the market uncertainly awaits the introduction of the bond notes,” he added.

Chigiya said the adverse effect of these policy pronouncements were already felt in Proplastics’ May figures.

The company’s turnover and gross profit margin for the months to April 2016 remained flat.

“We have actually seen the month of May slowing down further in terms of Sales Volumes and we expect this trend to continue in the short term,” he said.

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