HomeNewsGB eyes deals with Zimplats, Essar

GB eyes deals with Zimplats, Essar

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GB Holdings is in talks with Zimbabwe Platinum Mines (Zimplats) and Indian giant firm Essar Holdings over the supply of conveyer belts to the two companies.

Zimplats has already set aside $3, 7 million for the purchase of conveyer belts.

Managing director Wilbroad Tsuroh yesterday said:
“We are actively in dialogue with these companies.

“These projects will be very good business for the company. We don’t manufacture some of the conveyor belts required by Zimplats, but we are hoping by the time we conclude talks will be able to supply them.”
GB Holdings recorded a sales volume increase of 30% and achieved a turnover of $5 million for the year ended December 31 2010.

During the period under review natural rubber prices increased by 130% while other key raw material costs went up significantly driven by a stronger South African rand.

The company posted an operating loss of $1, 6 million.
Capacity utilisation for the group increased to an average of 35% compared to last year’s level of 25%.

The company said capital expenditure was restricted to operating components and information technology upgrades.

Tsuroh said growth in the mining sector resulted in an increase in volume of 28% for the rubber division compared to the prior year and contributed 47% to turnover.

“Lack of affordable funding as well as pressure from cheap imports held back performance of the division,” Tsuroh said.

On the chemical division, he said a significant volume growth of 31% was recorded compared to same period last year, contributing 53% to turnover.

Tsuroh said the division’s performance was constrained by low downstream demand as a result of low disposable income.

He however said despite the challenges the division retained its dominant markets.

The chemical division achieved a volume growth of 31% to 1 145 tonnes, having lost a significant share of the market to competition from imports and low liquidity levels which affected downstream demand.

The chemical division posted a turnover of $2,7m compared to $2,3m recorded in the prior year.

He said product reformulation and environmental compliance helped withstand competition from both the cost and quality perspectives.

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