Proplastics eyes regional market

SAMANTHA MADE

Proplastics Limited, Zimbabwe’s leading plastic pipe manufacturer, is scaling up its tank production capacity as it positions for a major surge in demand across the region, driven by both government infrastructure projects and private sector expansion.

The group’s chairman, Gregory Sebborn, said the company is confident of sustained growth as several large-scale projects come on stream during the dry season, a period traditionally associated with heightened construction and water infrastructure activity.

“We expect a significant uptake in demand for tanks, piping, and fittings as major projects, including those under the Government of Zimbabwe’s fiscal initiatives, commence during the dry season,” Sebborn said. “Having invested in boosting our tank production capacity in the third quarter, the business is positioned to capitalize on growing demand for tanks and accelerated sales growth.”

The expansion in tank production underscores Proplastics’ strategic shift towards regional growth, with management eyeing new markets in Southern Africa as infrastructure investment gathers pace. The company’s tanks are used extensively in agriculture, mining, and construction — sectors currently benefitting from renewed investment momentum.

Despite the upbeat outlook, Sebborn cautioned that unreliable power supply remains a key operational risk.

“Frequent unscheduled interruptions to electricity supply continue to drive up production costs, and consideration is being given to additional investments to mitigate the impact of such interruptions,” he said.

He added that while electricity supply challenges have disrupted production schedules, Proplastics’ backup generator and installed solar systems have reduced downtime and ensured business continuity during power outages.

Sebborn said the company expects raw material prices to remain stable throughout 2025, though management remains vigilant given persistent global supply chain tensions.

“The group will continue to monitor the environment for possible local supply options given the growing tensions in international markets,” he said.

Financially, Proplastics maintained a stable balance sheet as of June 30, 2025.

Total assets stood at US$24.66m, almost unchanged from US$24.69m at the end of 2024. Liquidity improved, with the current ratio rising to 1.74 from 1.59 in the prior period, reflecting better working capital management.

The company also reported strong top-line growth, with revenue climbing 12% to US$9.59m for the first half of the year.

“The revenue increase was driven by a 14% growth in sales and volumes, reflecting an improvement in demand for our products,” Sebborn said.

With Zimbabwe and neighboring countries stepping up investment in irrigation, housing, and water infrastructure, Proplastics’ strategy to enhance capacity and improve operational resilience places it in a strong position to capture new growth opportunities.0Industry analysts say the company’s investment in tank production could mark a turning point, enabling it to supply not only domestic projects but also regional infrastructure developments.