Sikhulekelani Moyo, Business Reporter
LISTED building materials producer, Turnall Holdings Limited, is set to commission a glass reinforced plastic pipe plant to diversify its product range and help reduce the country’s import component.
Turnall operates factories in Bulawayo and Harare where it produces and supplies roofing products, fibre cement corrugated roofing, concrete tiles, pavers, flower pots, garden decor, pipes for water and sewer reticulation.
Chairman, Mr Bothwell Nyajeka, revealed the plans over the new investment in a statement accompanying the company’s financial results for the year ended 31 December 2021.
“The company is commissioning a glass reinforced plastic pipe plant, which will bring diversity to its range of pipes,” he said.
“This new large diameter pipe plant should play a critical part in Government’s plans to both create manufacturing jobs and bring improved water supplies to the country.
“The new plant will also reduce the country’s requirement for scarce foreign currency by replacing imported pipes with local production and provide a solid base for new export opportunities into the region.”
The development comes as Government is working closely with the private sector in retooling and energising exports as a strategy to reviving the economy in line with the National Development Strategy NDS1:2021-2025).
Mr Nyajeka said their company was optimistic the business will continue growing and maximise shareholder wealth through technology absorption.
“Innovation, production of affordable quality products and superior customer service will remain top priorities,” he said.
“There will be an increased focus going forward on re-capitalising the plants, improving production efficiency and reducing production costs.”
Mr Nyajeka said plans are also underway to invest in a new plant and resume production of roofing sheets in Harare, which will augment Bulawayo operations in line with the increased demand for the company’s products, while improving customer service and cutting costs of shipping finished products to its largest market.
Meanwhile, Turnall Holdings has recorded $2,1 billion adjusted turnover for the full year ended December 2021, which is a 32 percent jump compared to the prior period.
“Gross profit margin for the year increased to 41 percent against the same period last year of 33 percent as a result of cost containment strategies and the business restructuring exercise implemented during the year,” said the company.
During the course of the year under review, Turnall said it managed to pay off all its loans and funded its operations from internally generated cash flows, which improved significantly compared to the prior period.
The company sells its products in both United States dollar and the local currency, which has helped it get foreign currency to import raw material and spares for use in production.
The company has also declared a final dividend of $0,04 per share for the financial year, which amounts to about $19,7 million.