Plastic pipe manufacturer Proplastics Limited is working closely with its suppliers to explore mitigation strategies amid concerns that the ongoing Middle East conflict could disrupt raw material supplies.
Since February, hostilities involving the United States, Israel, and Iran have caused global supply chain disruptions, affecting commodities and shipping routes.
A recent report by the Confederation of Zimbabwe Industries (CZI) indicates that 56,1% of firms are experiencing delays in the delivery of raw materials, which could in turn impact production schedules and operational stability.
“The recent escalation of tensions in the Middle East poses a risk to the raw material supply chain, potentially leading to shortages, delays, and price increases,” Proplastics chairperson Gregory Sebborn said in the firm’s recent financial results for the year ended December 31, 2025.
He added that while the business has secured sufficient raw materials in the short term, management is actively monitoring developments and working with suppliers to safeguard operations.
“The impact of the conflict on energy prices, which has already been experienced, and the resultant ripple effect on all input costs will increase pressure on the group’s margins, and management is already focused on strategies to ensure sustainability and continuity of operations,” Sebborn said.
During the review period, the company spent US$2,15 million on raw materials, the second largest component of its inventory costs, highlighting Proplastics' reliance on these inputs to sustain its stock levels.
The challenge comes at a time when the company plans to spend US$2,4 million in capital expenditure this year to expand capacity and improve production efficiency.
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Following the balance sheet date, the company highlighted further geopolitical developments, including Iranian missile and drone strikes on March 9, 2026, targeting civilian and energy infrastructure in Bahrain, the UAE, and Oman.
These attacks disrupted regional supply chains, including energy storage facilities, though Proplastics has no direct operations in the affected territories.
“While the group does not have direct operations within the affected territories, these developments may create indirect financial impacts, including volatility in global energy markets, supply chain delays, increased input costs, and potential constraints in regional trade routes,” Proplastics said.
Despite these uncertainties, the Proplastics board confirmed that the group has adequate resources to continue operations for the foreseeable future, supported by current performance and financial forecasts.
