HomeBusinessForex shortages affecting operations: Chisveto

Forex shortages affecting operations: Chisveto

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TURNALL Holdings is currently involved in a balance sheet restructuring exercise designed to reschedule part of its debts from short-term to medium-term or long-term. This exercise seeks to enable the tiles, asbestos and pipes manufacturing firm to re-invest some of the funds.

Fidelity Mhlanga

Turnall Holdings acting managing director Roseline Chisveto
Turnall Holdings acting managing director Roseline Chisveto

NewsDay Business reporter Fidelity Mhlanga (ND) interviewed the company’s acting managing director Roseline Chisveto (RC) to get insights about this exercise and a host of other issues. Below are the excerpts:

ND: At what capacity is the company operating at the moment?

RC: The CZI reported that the average capacity utilisation for manufacturing companies was at 47%. The company’s capacity utilisation is not far from that, but is expected to be higher in the second half.

ND: How much does the company require for capitalisation?

RC: The details of the recapitalisation of the business will be provided when the scheme of arrangement document is published.

ND: Are you looking for an investor to inject capital into the company?

RC: The company is not looking for an investor at the moment.

ND: To what extent has the foreign currency shortages affected your company’s operations?

RC: The company has not been able to procure enough raw materials due to foreign currency shortages and this has affected production and the company’s ability to meet the market demand of its products.

ND: How much does the company require monthly in terms of forex allocation?

RC: The company requires about $300 000 in foreign currency per month.

ND: Late last year you launched the Ecosheet product. How is it faring in the market?

RC: The new product offering has done exceptionally well in the market with acceptance levels now reaching over 90% for the last 12 months since its launch.

ND: Which water and sewer reticulation projects are on the radar for your Bulawayo Piping plant?

RC: Projects worth $1,9 million by various local authorities have been scheduled for this year but are waiting for funding. AC Pipes have been specified for these projects and the Pipe Plant is in a ready state to produce the pipes. This comes after the successful completion of the Nyamandlovu pipeline that was supplied in full and on time early this year.

ND: Can you share on the restructuring of the company’s balance sheet you are involved in?

RC: The company has net current liabilities of over $10 million. The balance sheet restructuring is designed to reschedule some of the debts from short term to medium term or long term debt.

This will enable the company to re-invest some of the funds that could have been paid to creditors now and this will improve the company’s ability to eventually pay all its creditors.

ND: Besides Zambia which countries do you seek to grow your exports?

RC: For now, we are focused on the Zambian market as it is competitive in terms of pricing, with re-entry into South Africa and Mozambique scheduled early next year after upgrading on our non-asbestos plant during the last quarter.

ND: May you comment on assertions that management you is engaging with creditors for a debt to equity deal?

RC: As part of the scheme of arrangement, the company is offering some creditors shares to settle creditors’ debt.

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