RURAL Electricity Agency (REA) has formed a new subsidiary, Hotspeck, to produce electricity transmission poles as it seeks to expand its business portfolio.
BY SHARON SIBINDI
REA spokesperson, Johannes Nyamayedenga told Southern Eye that Hotspeck was formed to fill in the gap that existed in the provision of transmission poles.
“We had been operating smoothly since REA was formed until 2006-2007, when we started experiencing serious shortages of electricity transmission poles. During that period, many companies that were in the business of producing electricity transmission poles preferred to export their poles to get foreign currency,” he said.
“As a result, our programmes of electrifying rural areas were stalled, not because we did not have the capacity, but because of failure to secure or procure transmission poles. That was when we thought of opening up a separate company, which produces electricity transmission poles. So, we then opened Hotspeck Enterprises as a subsidiary of REA to specifically look into the business of producing electricity transmission poles.
“The company has a state-of-the-art computerised automated plant in Mutare. It produces up to 100 000 electricity transmission poles annually.”
Nyamayedenga said Zesa consumes 20% of what is produced by Hotspeck, with the bulk sold to other consumers locally and outside the country.
“The plant has also created employment and we also engage private transporters to collect our poles from plantations to our plant in Mutare,” he said.
Nyamayedenga said the company has diversified from making electricity transmission poles into making cross arms.
“We are also making fencing and roofing poles. Our poles are ISO certified,” he said.