Turnall to commission a 45,000 tile making plant

Published: 08 September 2013

Turnall Holdings Limited is set to commission a 45 000 tile-making plant next month as the company angles to dominate the market and increase capacity utilisation.

The managing director, Mr John Jere, in an interview with the Sunday Mail last week, disclosed that the US$2,5 million state-of-the-art plant would complement current equipment and boost production levels of the asbestos and cement products manufacturer.

Turnall has since last year been investing in new equipment as part of a repositioning exercise aimed at turning around operations.

"We intend to commission a new tile-making plant in October. The machine is expected to buttress the volume recovery and increase productivity. But the product will be targeted mainly to the low-density segment that we had previously not been catering for," he said.

Mr Jere said market dynamics demanded that the company adopt new technologies to remain viable.

Turnall's profitability has largely been dented by costs associated with the importation of chrysotile fibre, the main ingredient in the manufacture of asbestos, from Brazil and Russia, following the closure of Shabanie-Mashava Mines (SMM). Market watchers also contend that low demand caused by the liquidity crunch that had gripped the nation prior to the general elections had effected the company's operations.

According to Mr Jere, the high value product from the new plant is expected to increase output of higher margin products.

The company's major focus has been on the low-income product range, but the plant is expected to build capacity in the medium and top-tier market segments through new and expanded product offering.

"The decision to invest in new equipment was taken after realising that the market trend had shifted. Our market system has low, medium and high-cost demand. These should not be ignored or overlooked. We need to come up with products that satisfy all the segments," he explained.

"The company has taken a long-term approach in doing business and has been on an investment drive. With this investment, the company is now represented in all market segments including the low-cost housing segments," he added.

Mr Jere revealed that the high-technology approach would reduce production costs, making products competitive on the market.

Demand for building material is expected to boom, underpinned by new projects that the new Government has pledged to undertake.

A number of construction sites, particularly for low-income earners, are expected to be set up within the next five years.

Presently, Turnall's capacity utilisation is estimated to be around 80 percent, supported by lucrative running contracts in South Africa.
- sundaymail