By Alois Vinga
LISTED roofing and construction products manufacturer, Turnall Holdings says its Harare Fibre Cement Plant which is currently underway will be ready for production next year, in a development which will go a long way to spur productivity.
In a trading update for the third quarter ended September 30 2022, Turnall board chair, Bothwell Nyajeka revealed the plans.
“The refurbishment of the Harare fibre cement plant is currently underway, and production is expected to commence in the second quarter of 2023.
“This will result in significant cost savings and improved product availability in the Northern region where there is higher demand for Turnall products. The Group is also going to resume the production of Inverted Box Rib (IBR) roofing sheets which will commence in the 4th quarter of 2022,” he said.
Nyajeka said the development will improve the group’s product offering and see the company taking advantage of an additional segment of the market which will spur growth since the group is also supplying some government projects which are of national importance.
The group continues to uphold COVID-19 protocols in order to safeguard the health and safety of its staff and all its stakeholders.
Despite the challenges experienced during the third quarter of 2022, Turnall remains focused on its strategies of innovation, profit optimization, production of quality products and superior customer services.
In terms of performance, the Turnover in historical terms increased by 282% in historical terms and by 13% in inflation-adjusted terms in spite of a volume reduction of 34%.
“The decline in volumes was mainly due to a change in the sales mix which was skewed towards the high value and low tonnage building products; coupled with a decline in the aggregate demand due to liquidity challenges in the market,” said Nyajeka.
Profit margins remained under pressure due to the increased cost of doing business.
In addition, there were official and parallel market exchange rate distortions whose adverse impacts could not be fully absorbed through selling price adjustments.
“A business decision was made to build adequate stocks in preparation for the peak period. The Group continued to engage suppliers for better terms and prices, pursued its cost containment initiatives and restructured the business in line with its strategy,” added Nyajeka.