ZIMTILE, a PG Industries subsidiary, says it is targeting to push capacity utilisation to 50% at its factories by year-end if it secures adequate working capital.
Zimtile managing director Wellington Kuwana said currently the capacity utilisation for both Bulawayo and Harare plants was at around 40%.
“The business is tough, but there is slight improvement. We have a challenge of working capital and funds available, we are targeting to push our capacity utilisation to 50% by year-end,” he said. “We need a lot of capital.”
Kuwana said they would engage their suppliers of raw materials to ensure that production continued.
He said Zimtile would also work on cost-cutting strategies.
Kuwana recently said the company’s exports constituted 10% of volumes, but demand for tiles, mainly from Zambia and Mozambique was high.
Zimtile said it planned to venture into Botswana and the Democratic Republic of Congo.
Kuwana said the company was planning to grow its exports to 20% of total volumes by year-end, driven by high demand of its tiles in foreign markets.
He said Zimtile was producing 35 000 tiles per day, but expected production to increase to 65 000 tiles a day when the upgrading of the Bulawayo plant is complete.
The Zimbabwean market, he said, was difficult, with no major construction projects going on as most of them were on hold due to lack of funding. Kuwana said Zimtile planned to set up smaller operating units in major towns and centres and add new products to its current range.
The company installed a new plant in 2011 at a cost of $2,5 million and reduced production costs by half.
Zimtile has been in existence since 1957.