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Kadoma Paper Mills general manager Mr Mackson Maturura (white helmet, centre) shows business journalists from different media houses some of the milling operations during a tour of the company yesterday. — Picture by Tinashe Makichi

Oliver Kazunga in Kadoma
KADOMA Paper Mills, a division of the Zimbabwe Stock Exchange-listed ART Corporation is losing thousands of dollars per month importing waste paper among other raw materials from South Africa and Botswana.

Briefing journalists after a media tour of his company yesterday, Kadoma Paper Mills general manager, Mr Mackson Maturura, said raw materials that included waste paper and chemicals were gobbling up to $36 000 per month. The company’s production capacity ranges between 380 tonnes and 390 tonnes per month.

“We are importing chemicals and waste paper spending between $30 000 and $36 000 per month equivalent to 150 tonnes of paper,” he said.

Mr Maturura attributed waste imports to low supplies locally due to suppressed activity in the local printing industry. Locally, the firm sources the bulk of paper waste from Bulawayo and Harare.

The journalists who are drawn from different media houses are in Kadoma attending a four-day business and financial reporting workshop organised by the Securities Exchange Commission of Zimbabwe. The workshop ends tomorrow.

Mr Maturura said the paper milling company has capacity to produce 400 tonnes of paper per month if given adequate support.

The paper milling company general manager said 70 percent of their products which include kraft paper and tissue paper, were being distributed locally while 30 percent is exported to different countries in the region.

At its peak, the company employed more than 300 workers but the figure has dropped to just 70 permanent workers.

For the six months to March 31, 2017, the group’s after tax profit increased by 41 percent to $1.3 million compared to $892 000 the same period in the prior year broadly driven by improved performance across its subsidiaries.

In the period under review, ART revenue was eight percent up at $15.2 million from $14.13 million during the comparative period, mainly on increased battery sales in Zimbabwe.

The group’s other business units are paper milling plant and plantations in Manicaland.

The company’s gross margins also increased to 40 percent from 38 percent last year resulting in an operating profit of $2 million, an improvement from $1.7 million in the prior comparable period.

The group’s total assets during the period under review remained flat at $30.9 million.

@okazunga