PLASTIC pipes and fittings manufacturer Proplastics Limited says the supply chain for its key raw material, polyvinyl chloride (PVC), has been affected by the ongoing United States–Israel war on Iran, although the firm posted solid results in the first quarter of the year.
The disruption highlights how escalating geopolitical tensions in the Middle East are beginning to ripple through global industrial supply chains, pushing up input costs for manufacturers and creating new uncertainty for Zimbabwean firms that rely on imported raw materials.
In its trading update for the first quarter ended March 31,2026, Proplastics reported disruptions in securing key materials.
The conflict began in February and has disrupted global supply chains, with prospects for peace appearing distant.
“The ongoing geopolitical conflict in the Middle East presents challenges to market stability. The supply chain for our key raw material (PVC resin) has been disrupted,” Proplastics said.
“Raw material prices have already been negatively affected as a result. In addition, fuel prices significantly increased towards the end of the quarter, exerting inflationary pressure on the economy.”
However, the firm recorded steady growth in the first quarter despite the challenges.
“Sales volumes rose to 1 861 tonnes, up from 1 376 tonnes in the prior year. This represents a 35% year-on-year increase for the quarter, driven by projects across the country and the region. Production volumes were up 22%, supporting order fulfilment and replenishment of fast-moving inventory,” Proplastics said.
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“The business maintained margins against the prior year, despite pressure from raw material and fuel price increases. We continue to monitor raw material supply due to ongoing geopolitical tensions in the Middle East and the in-market fuel price increase, which continue to put pressure on the company’s margins.”
The firm is now actively pursuing opportunities in the irrigation and civil engineering segments while consolidating key merchant and mining accounts, NewsDay Business understands.
“There have been positive developments on the exports front, whose contribution to performance is expected to significantly improve,” Proplastics said.
“Our enhanced production facility is well-positioned to meet growing demand across our entire product range. We continue to monitor raw material and fuel pricing uncertainty, which could potentially impact project timelines. Despite this headwind, the Q2 outlook remains positive.”
The firm also noted that electricity supply had been more consistent, on the back of improved performance from hydro generation.
