Hair products manufacturer Blue Track Investments has called upon Government to scrap duty on imported on synthetic fibre.

The company imports all its raw materials used in the manufacturing of the braids and weaves from Korea, and Zimra currently charges a 5 percent duty on imported synthetic fibre.

Speaking to journalists on a tour of the company yesterday, corporate affairs director Moses Chundu said scrapping the duty would reduce their costs and improve their competitiveness in the region.

"Although our product is presently competitive compared to products in the region, if duty is scrapped this will reduce our production costs and enable to us to grow.

"If the market continues to respond and the Government helps in reducing imports we will be able to grow at a fast rate and construct another plant. We have already expanded to our current plant by 120m2," he said.

"We are exporting 40 percent by value, but by quantity its is over 40 percent. Last year alone we exported $2,7 million worth of goods. This year we are targeting $3,5 million in export sales."

Chundu lamented the Sadc free trade protocol, which he said had resulted in stiffer competition due to cheaper imports from the region.

He added that smuggling was a major concern for their business.

''Some of the goods found on the local market enter the country illegally through smuggling and have a negative bearing on our sales because they create illegal competition," Chungu said.

Despite facing stiff competition from import products the company has managed to remain competitive on the market retaining a 60 percent market share.

Blue Track Investments, a subsidiary of Taesung Holdings (Pvt) Limited, is the leading manufacturer of braids and weaves on the local market producing 10 000 weaves a day and employing about 700 workers.

Tags: Duty, Zimra,