Taurai Mangudhla
HARARE – General Beltings Holdings (GBH) forecasts growth for its business buoyed by demand for its products from the mining sector.
The business is already on a recovery trajectory after breaking even, at operational level, in the first five months of 2018 compared to a loss position the previous year.
Managing Director, Wilbroad Tsuroh, this morning told the Business Times the mining sector is poised for growth, with other players, including GBH, expected to reap on the success of mining.
“We have a lot of minerals which are doing well, gold is expected to improve and we haven’t even exploited natural gas and lithium, so we will benefit as GBH from this in terms of supplying the mining industry with some inputs,” he said on the sidelines of the company’s annual general meeting.
Overall, both volume and revenue went up 27% in the period under review compared to the same period last year.
At General Beltings, Tsuroh said, volumes were up 35 % while revenues also grew 23%.
Cernol Chemicals volumes remained flat, but revenues grew 35% due to improved efficiencies.
New equipment was delivered and commissioned resulting in manufacturing efficiencies. The equipment at the company’s plant replaced old components after auditors noted losses from antiquated equipment.
Tsuroh said a technical partnership, for short term financing, with NUVO allows GBH shorter order turnarounds.
Cernol continues to develop high performance lubricants in partnership with Klubber of Germany.
Tsuroh, however, said foreign currency constraints persist and continue to hamper the business despite cooperation from the central bank.
As a result of foreign currency shortages, the company is struggling to import adequate raw materials.
Tsuroh said the company now imports 40 tonnes of raw materials monthly against a demand of 80 tonnes. This means the plant can have two weeks down time.
“I would prefer that we have 80 tonnes a month. We have capacity to do 120 tonnes, but foreign currency is a challenge,” Tsuroh added.
