4/5/2011 3:55:00 AM
NEWS BRIEFS
BMA Parent in ‘Urgent Need’ of Adequate Capital Injection
Zimbabwe-based SteelNet recorded a US$5.2 million loss during 2010 due to “low capacity across its operations,” the Zimbabwe Herald reports.
The manufacturer of steel pipes, fasteners and agricultural implements said the successive losses recorded over the past two years were now a threat to its ability to continue operations.
Capacity of the group’s operations was mainly affected by “inadequate raw materials, significant impairment on property, high borrowing costs and doubtful debt provisions.”
“The group remains in urgent need of adequate capital injection,” said Steelnet. All three factories require restocking to enable them to service available demand and also grow volumes.”
Steelnet said it had started restructuring its operations.
“Measures have been implemented to significantly reduce employment costs and rationalise product range. In addition, the disposal of excess land is underway,” said Steelnet.
The group has also embarked on a scheme to restructure short-term debt and settle outstanding liabilities.
BMA, a division of Steelnet, employs more than 100 workers to manufacture bolts and nuts for the in the mining, agriculture and construction industries. The company exports fasteners to such countries as Namibia, Zambia and South Africa.
BMA also offers complementary services like hit dip galvanising, electro planting heat treatment, wire treatment, wire drawing and general engineering.
BMA managing director Erick Makarimayi said fastener imports to Zimbabwe were hurting domestic producers.
“We are facing severe competition from the goods that are coming from countries such as China, Dubai, South Africa and Indonesia.”
BMA Fasteners manufactures a range of bolts and nuts, wire nails, roofing products, rock support systems and specialized forgings. It also offers complementary services like hit dip galvanizing, electro planting heat treatment, wire treatment, wire drawing and general engineering. ©2011 GlobalFastenerNews.com
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