HARARE – The country’s leading manufacturer of conveyor belts – General Beltings Holdings’ revenue for the five months to May 2018 grew 23 percent on increased volumes across board.In a trading update volumes increased 35 percent on the back of manufacturing efficiencies.
Improvements in the mining sector are expected to boost the engineering firm’s earnings on the back of increased demand from the sector. The company has already reached a break-even point from a loss making position.
Subsidiary Cernol Chemicals volume remained flat although revenue was 35 percent above same period last year as the company continues to develop high performance lubricants in partnership with Klubber of Germany.
The belts manufacturer has bemoaned foreign currency shortages although efforts remain in place to engage relevant authorities.
Industry wide, foreign currency limitations have affected operations resulting in inconsistent supply of essential raw materials, affecting production.
However Government through the Reserve Bank of Zimbabwe have come up with initiatives to assist industry with foreign currency for their working capital requirements, although unable to meet demand on low nostro balances.
General Beltings also indicated it entered into a partnership with Nuvo, which provided a facility for working capital, equipment and order book — allowing for shorter order turnaround period.