Proplastics earmarks US$1.6m for capacity expansion, energy investments

CLOUDINE MATOLA

Proplastics Limited, Zimbabwe’s leading plastic pipe manufacturer, will invest US$1.6m during the second half of the year to expand production capacity and strengthen its energy infrastructure as it positions for higher output and broader market coverage, Business Times can report.

Speaking on the sidelines of the company’s annual general meeting, chief executive officer Pascal Changunda said the investment programme comprises US$600,000 for production capacity expansion and US$1m for energy solutions.

“We are looking at investing about US$600,000 in capacity expansion and US$1m in enhancing our energy solutions,” Changunda said.

“The investment will enable us to add significant production capacity. Following completion of the programme, we expect production volumes to increase by between 8% and 10%.”

He said the company is also focusing on enhancing its product portfolio to improve market penetration and meet changing customer requirements.

“We are looking at enhancing the products that we are manufacturing to improve our market coverage,” he said.

Changunda expressed confidence that business performance in the second half of the year would outpace the first half, citing a strong pipeline of customer inquiries that points to sustained demand.

“We expect the second half of the year to be stronger than the first half, and the level of inquiries we are already receiving supports that outlook,” he said.

Operational performance has remained robust, with sales volumes rising 26% year-on-year during the first five months of the year. Revenue also increased 23% compared to the corresponding period last year, reflecting resilient demand for the company’s products.

Production volumes grew 28% over the same period, slightly outpacing sales as the company increased inventories of selected strategic products to ensure adequate supply.

“Production increased by 28% compared to the prior period, driven by stronger sales as well as deliberate stocking of strategic products. That is why production growth is slightly ahead of sales volume growth,” Changunda said.