Zimtile to Boost Capacity Next Year

By Tawanda Musarurwa
Manufacturer of concrete roof tiles, pavers and bricks Zimtile (Pvt) Ltd is set to boost its capacity with new investments set to commence at the start of 2019, chief executive officer Hilary Munyati has said. Zimtile is a wholly-owned subsidiary of PG Industries Zimbabwe.

The CEO said the new investment comes as the parent company has concluded a High Court-sanctioned revival programme, the Secondary Scheme of Arrangement, allowing new investor Dewei Investments to fund capital projects going forward.

“Conclusion of the PG Secondary Scheme has allowed the new investor to start making significant investments in all PG businesses. I will concentrate on planned investment in Zimtile.

“Additional new roof tile pallets will be received beginning of 2019, which will enable Zimtile to double its current roof tile production capacity.

“Zimtile will also acquire a state-of-the-art high capacity concrete Bricks and Pavers Machine in the first quarter of 2019,” said Munyati during a ceremony where Zimtile was receiving the ISO 9001: 2015 Certification from the Standards Association of Zimbabwe (SAZ).

Munyati added that Zimtile will expand its production centres across the country. Currently, the company produces roof tiles, bricks and pavers in Harare, Bulawayo and Masvingo.

“In the medium-to-long term Zimtile will decentralise production to selected centres outside Harare,” he said.

Earlier this week, the parent company announced the conclusion of the Secondary Scheme, which paved the way for its acquisition by Indian firm, Dewei Investments.

Through the Scheme, PG industries set out a payment schedule for its creditors that saw the company over time paying statutory creditors $3, 76 million, secured creditors

$1, 64 million, preferred creditors $1, 18 million, concurrent local creditors $2, 73 million and foreign creditors $117 648.

And around $500 000 has been set aside for old PG Industries shareholders who will be paid when they surrender their share certificates, which will be cancelled pending issuance of new ones.

Meanwhile, speaking at the same event, Industry and Commerce Minister Mangaliso Ndlovu said Zimtile’s new certification will help the company in terms of an export-oriented approach.

Zimtile currently exports circa 15 percent of its products into some SADC countries.

“I am informed that Zimtile has become a regional player and is exporting to Zambia, Democratic Republic of Congo and Mozambique.

“The benefits of attaining quality management systems and living with standards at company and national level alike cannot be over-emphasized. Quality assurance is thus a pre-requisite to competitiveness of products and services which in turn attract business partners.

“The Quality Management System is thus a tool that aims to enhance customer satisfaction leading to reduced product rejection, especially in the export market,” said the Minister.

Zimtile was previously certified to the ISO 9001: 2008, but in 2015, that certification was revised by the International Organisation for Standardisation (ISO) community and all clients certified to ISO 9001: 2008 were then required to transit to the new ISO 9001: 2015 standard by September 18, 2018.

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