Cheap imports cause damage: ZECO

The influx of cheap, poor quality products on the Zimbabwean market continues to deprive players in the construction industry of a better market share, ZECO Holdings chairman, Phillip Chiyangwa, said.

In the company’s unaudited consolidated financial results for the half year ended 30 June 2011, Chiyangwa said sales at Crittal Hope, a ZECO Holdings subsidiary, declined by 15 percent compared to the same period last year. He added that a change was expected in the second half of the year as the company was implementing a vibrant marketing strategy.

“The decline was a result of direct competition with cheap imports,” said Chiyangwa.

The chairman said a shortage of electricity affected operations at Zimplastics, another subsidiary. He said discussions with the Power Utility for a dedicated supply for the factory were at an advanced stage and this would boost the entity’s productivity.

Mr Chiyangwa said the group has started implementing a strategy to achieve growth through intra-synergies after realizing that most products from subsidiaries fed into one another.

“The coming back on board of various mining companies and new entrants gives a green light to our business. Consultations for smart partnerships are being done with regional and international key players in the industry,” he said.

ZECO Holdings had a total revenue of $853 063 compared to $918 671 last year and recorded a total loss for the period of $889 403 compared to $595 441 of June 2010.

Post published in: Business

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