3/2/2010
African Company Exports $3.4 Million in Fasteners
An African company founded in 1939 to import fasteners and supplies for animal-drawn implements used by small-scale farmers reported 2009 sales in US$9.1 million, including exports of $3.4 million.
Zimplow Ltd. was founded as the Rhodesian Plough & Machinery Company Limited to ensure supplies to farmers that were traditionally imported from Europe would not be blocked by World War II.
Chairman Onias Chidawu reported 2009 was a good year for Zimplow. “I have pleasure in providing a report under a totally different economic, social and political climate from that which prevailed in 2008,” he reported to shareholders.
Chidawu noted that “the world economic platform has significantly shifted since my last report. Oil and steel prices dropped significantly and have since recovered again. The world financial crisis has drastically shifted economic power from the West to the East, with China dominating the world economic scene. In the meantime, your group did not lose focus on its clear direction of maintaining export markets while retaining the local market share in spite of global challenges.”
Bulawayo, Zimbabwe-headquartered Zimplow reported US$5.6 million in domestic sales for 2009.
Chidawu credited “strict cost control, improved export margins derived from the removal of retentions by the Central
Bank and increased sales of spare parts that carry better margins,” for a pre-tax profit of $2.8 million.
Zimplow qualified for a reduced tax rate of 20.6% because the company exported more than 50% of its manufactured products. That made the after tax profit $2.2 million.
• Mealie division sales for 2009 fell 35% to $7.6 million from the previous year.
Mealie manufactures animal drawn agricultural implements and hoes predominantly for the South of the Sahara market.
Export volume declined 53% to 2007 levels.
Chidawu attributed the decline to the exit of the Angolan market plus drought and competition in East Africa.
The “Mealie brand will continue to focus on the growth of the export markets and at the same time consolidate the local market,” Chidawu said.
• The C.T. Bolts division, acquired in 2006, reported sales of $1.02 million for 2009.
C.T. Bolts manufactures and distributes fasteners, including mild steel bolts and nuts, nails and wood screws. The main C.T. Bolts factory is in Bulawayo and a second is in Harare.
The C.T. Bolts division relies on local markets. “The division has experienced a surge in its sales indicating some form of growth within the economy,” Chidawu reported.
The division posted an operating profit of US$132,597.
C.T. Bolts was established in 1954 by C.F.Mitchell and his wife, T.E.Mitchell, as Rhobolts – an importer and distributors of fasteners.
A distribution outlet was opened in Harare in 1957 and a factory opened in Zimbabwe’s second largest city, Bulawayo, in 1962 to cater for small requirements of customers and developed into the largest machine shop in the country specializing in fasteners.
The company was renamed C.T. Bolts in 1980. The company was privately held for 51 years.
C.T. Bolts now manufactures non-standard fasteners for the Central and Southern African region.
• The Tassburg division, which manufactures wood screws, verandah bolts, high tensile bolts and nuts, operated at less than 30% capacity and the bolt section did not operate during 2009.
Tassburg posted an operating profit of US$ 21,321.
“Recovery of this business is basically dependent on recovery of the construction sector,” Chidawu observed.
Zimplow acquired Tassburg in 2008.
Zimplow “will continue to pursue a business model that focuses on the steel and fastener products,” Chidawu said.
“Mealie Brand will continue to focus on the growth of the export markets and at the same time consolidate the local market.
C.T. Bolts “will take advantage of strategic supplier relationships that it is currently enjoying to dominate the local fastener distribution.”
Tassburg’s bolt plant will be moved to Bulawayo and the screw plant will continue to operate. Zimplow “management is confident that if the construction sector starts rebounding, the division will in turn experience a rebound.”
“The economic platform, which appears ready for a take off, is being hampered by the absence of sufficient foreign direct investment in the economy and lack of working capital within the financial sector. Infrastructure rehabilitation has not started, erratic energy and water supplies are a huge threat to businesses in 2010.” ©2010 GlobalFastenerNews.com
Zondi Kumwenda succeeded Anthony Rowland as Zimplow CEO in 2009. Willard Chipepera is sales & marketing director and Joe Kee Tui is administrator of export sales.
Zimplow is headquartered at 39 Steelworks Rd., Steeldale (PO Box 1059), Bulawayo, Zimbabwe. Tel: (263-9) 887989, 880667 or 71363/4/5. Fax: 71365. E-mail: mdsec@zimplow.co.zw
CEO: Zondi Kumwenda E-mail: zkumwenda@zimplow.co.zw
Sales & marketing director: Willard “Chips” Chipepera E-mail: wchipepera@zimplow.co.zw
Export sales administrator: Joe Kee Tui E-mail: sales@zimplow.co.zw
Sales representative: Mike Mbambo E-mail: sales@zimplow.co.zw
Technical works director: Stanely Ndlovu. E-mail: sndlovu@zimplow.co.zw
Quality director: Lucky Mzyece E-mail: lmzyece@zimplow.co.zw
Purchasing: Marilyn Lingham E-mail: mlingham@zimplow.co.zw
©2010 GlobalFastenerNews.com
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