Proplastics eyes regional market growth
ROBIN PHIRI
Proplastics, a publicly traded plastic pipes producer, is set on doubling its tank manufacturing capacity and boosting export sales across the region, despite maintaining a moderate capital expenditure (capex) plan for the remainder of the year.
According to Acting CEO Pascal Changunda, the company is optimistic about regional demand, citing encouraging market activity in neighboring countries and several large-scale projects currently in the pipeline.
“The demand is there, and we’re confident that we can supply the market. However, competitiveness is a major issue, and we need to manage that effectively,” Changunda said.
To support this growth, Proplastics has allocated $1 million towards critical maintenance and upgrade projects, including enhancing generator capacity and acquiring spare parts for machinery. Nonetheless, Changunda stressed that no major investment plans are anticipated for the year.
“We’re not expecting to spend the full $1 million. Our capex plan focuses on critical issues. We have no new borrowings planned — we borrowed last year specifically to install new machines, sort out the solar system, and strengthen working capital through short-term borrowings,” he explained.
The expansion of the company’s tank manufacturing capacity is already underway, with new equipment expected to arrive by the end of June. Changunda expressed confidence about increasing export sales in the region.
“We’re looking forward to a positive year ahead, driven by our growth strategy and prudent management of our resources. We’re confident that our products will continue to meet the demand in the region,” he concluded.
With stable raw material prices expected throughout the year, Proplastics is well-positioned to meet growing demand, having ensured its factory is fully equipped to process and fulfill orders promptly and efficiently.
The company’s focus on regional export growth is anticipated to stimulate economic activity within the markets it serves.
As Proplastics expands its operations, it remains committed to delivering high-quality products and services to its customers.
Additionally, the company anticipates a strong second quarter, propelled by a surge in export inquiries and expected revenue growth. This optimism is further supported by favorable weather conditions that have improved water levels at Lake Kariba, enhancing electricity generation and operational efficiencies.
