Export Profile

For the past decade, Turnall has been exporting into the SADC region with 95%
of exports going into the RSA.

In 2003, a deliberate position was taken to grow other markets outside RSA and
significant inroads have been made into the other markets.

The following are the key markets of focus and their respective contributions.

i) RSA

• The key export market contributing 87% of the total export business
  in 2005.
• The year 2006, will see the market generating 80% with a growth of 15% in market share.
• This is reflecting a positive real growth and efforts are underway to sustain this growth.

ii) BOTSWANA

• It’s a key strategic target market Turnall has made significant inroads into this market and has managed to build strong relationships based on highly effective delivery and customer service in 2005. The market contributed 11% of the total export business which was achieved during the 2nd half of the year.
• Focus for 2006 will aim to grow the business by an ambitious figure of 94% and contribution to 15% of the whole export business. Focus is also on maintaining the high level of customer service and take advantage of our SABS accreditation, which is our most powerful unique selling point in this particular market.

iii) MALAWI

• The year 2005 focused mainly on building strategic relationships which we managed to achieve though still a relatively virgin market, Malawi has received our product and it has done reasonably well on the market. 2006 will focus on consolidating the relationships and making sure that reasonable volumes are realized during this year. Overally Malawi will contribute 2% to the export business.

iv) MOZAMBIQUE

• Although still a virgin market, again focus will be on consolidating the relationships developed in 2005, and start realizing significant volumes. The strategy will focus on addressing anti-asbestosis issues targeting particularly the NGOs who do not want to use A.C based products.

v) NAMIBIA

• Turnall has supplied reputable and huge projects in Namibia.
• Focus for 2006 will be to identify strategic partners to work on upcoming sewer and water reticulation projects across Namibia.

PRODUCT RANGE

Our product range on offer includes the following:

i) Turnall Ceiling Boards

• These are manufactured to various sizes and thickness.
• The product has a wide range of application for use in the interiors of residential, commercial and industrial properties.
• It can also be used for wall partitioning, paneling and wall turnings.

ii) Straight Endurite Sheeting

• These are corrugated roofing sheets made in the following sizes, 1.2m, 1.5m, 1.8m, 2.1m, 2.4m, 2.7m, 3.0m, 3.3m, 3.6m.
• The sheets have been on most roofs across Southern Africa for over half a century and proves how strong and durable the product is.

iii) Building Columns

These are manufactured in various sizes and specifically Turnall is the sole supplier of this product in Southern Africa.

vi) Piping Products

Turnall has supplied for the past half a century both sewer and pressure pipes. The pipes are tried and tested to prove a long life span. In actual fact our range of pipes are tested twice to the working pressure. Pipes have been supplied to all countries in the Southern Africa, Mozambique, RSA, Botswana, Namibia, Zambia and Malawi.

vii) Fascia Boards

Turnall manufactures the best of strong, durable and long life fascia boards. These are found in a wide range of sizes and thickness to suit customers’ needs and specifications.

viii) Bargeboard

Turnall bargeboard has been on most exquisite homes across southern Africa for decades. Its strong, durable and dependable and again can be manufactured to suit your needs. The most common standard size being the 80x200x3000. Other sizes can be made on request

EXPORTS

Turnall Fibre Cement boasts a rich history in International Trade having started exports into South Africa, Mauritius, Malawi and Mozambique from as early as mid 60’s.

The main product line that exported then was sewer piping.

The momentum in exports increased with time to include the USA, Botswana, and Namibia with the product portifolio growing to include water pipes, rainwater goods as well as barge boards, tapboards and roofing sheets.

RAW MATERIALS

Turnall uses two basic locally produced raw materials, asbestos fibre and cement.  Asbestos fibre is supplied by African Associated Mines ("AAM") which has mines in the Mashaba and Zvishavane areas.  AAM, which is a division of SMM Holdings, supplies 18% of the World's requirement and is ranked the third largest producer in the world.  Turnall purchases from SMM Holdings on an arms length basis at market prices.

Turnall is one of Circle Cement and United Portland Cement's largest customers and consumes approximately 10% of Zimbabwe's cement production.  However, in the short term, cement supplies are regarded as a potential constraint to growth as the cement manufacturers struggle to meet demand.  This situation has been taken into account in TFC's forecasts.  Additional cement
capacity is scheduled to be available from 2002.
 
Production capacity is approximately 115 000 tonnes of sheets and 25 000 tonnes of pipes per year.

PRODUCTS AND MARKETS

Turnall's principal roofing products are corrugated Endurite and Trafford Tile roof sheets. However, a broad range of Roofing products including ridges, curved sheets, bargeboards and specials are also produced.

Flat products include ceiling boards, Flat sheets and Tapboard for internal ceiling and partition boards. In the medium to high cost roofing sector Turnall offers pressed and unpressed roofing slates, Pantiles and reeded roof tiles. Turnall also produces a wide range of garden pots and garden furniture marketed under the brand name Turnallware.

Piping products include medium Pressure pipes up to 900mm diameter used for potable water conveyance and distribution, and Sewerage and Drainage pipes of up to 900mm diameter.  In addition, a wide range of piping accessories are manufactured. Turnall’s main markets are low cost housing, Municipal water projects, large infrastructural development, and irrigation Projects.

Over the decades, Turnall has undertaken numerous large scale roofing and piping installation projects.  Recently notable roofing installation include Chimanimani Sawmill: 66 000m2, Veterinary Science Block, University of Zimbabwe: 33 000m2, Cowdray Residential Park, Bulawayo: 150 000m2, Mkoba Residential Project: 21 000m2.  Regional installations include Kwadaabeka Housing Project, Durban, South Africa: 32 000m2 and Swakopmund Residential Project: 5 000m2.

Turnall also has a long established reputation for manufacturing and installing large development related fluid transmission systems, using fibre cement pressure piping.  Notable piping installation include Tynwald Residential Park, Harare: 10 600m, Cowdray Residential Park, Bulawayo: 32 752m, Pumula South, Bulawayo: 17 288m and Bindura Sewer Reticulation:23 560m

CUSTOMER BASE

Sheeting

Turnall’s main  distribution channels to the market are through a well established and supportive network of stockists.  In addition to large projects, products are  supplied direct to Municipalities and Contractors.

The top twenty customers represent 72% of sales.  Overall, there is no reliance on any one customer.  Low cost housing is the largest market sector.

Piping

The top ten customers represent 70% of total sales.
Local Authorities and irrigation industry are the largest pipe customers.
 
 
COMPETITION

There is one other manufacturer of fibre cement roofing in Zimbabwe but competition comes primarily from suppliers and manufacturers of concrete roof tiles, galvanised corrugated iron and IBR profile metal.  However, Turnall's competitive advantage includes a strong capital base, brand image and good technical expertise.
 
There are no other manufacturers of fibre cement pipes in Zimbabwe and competition comes mainly from PVC, GRPand concrete pipes.
 
STRATEGIC FOCUS

In 1995 Turnall embarked on an aggressive restructuring programme aimed at improving efficiency and quality and moving the business from a production driven to a market driven culture.
 
The current strategy is to continue to drive down costs and improve efficiencies in Turnall's core fibre cement business and adopt a growth strategy by building on its financial, management and marketing strengths to enter into new but related business areas.
 
 
FUTURE PROSPECTS
 
On the foundation of political stability and economic growth in the region, a major priority for governments and local authorities will be to provide low cost, affordable housing.  Fibre cement roofing is the preferred choice for this application because of its cost effectiveness, durability and ease of application.Turnall pipes are also used in local reticulation and supply distribution to new housing developments.
 
Growth rates in excess of 2% in the roofing sector are projected for the next five years.  Piping sales are projected to grow by 40% in 2002 and thereafter by up to 5% per annum.
 
Sheet Plant capacity utilisation reached 90% that saw a  $30m additional production line being commissioned in 2000. During 2002 capacity utilization is 95%.
 
Turnall is therefore well placed to take advantage of projected growth prospects in asbestos-cement products.  As part of the strategy of increasing its product range into related products and markets it is currently investigating the manufacture of other building and construction materials.
 
The company has set itself ambitious export targets mainly into regional markets. Already exports account for 25% of volume sales.
 
The devaluation of the Zimbabwe dollar and the inherent growth in these markets will make these targets achievable.
 
 
PRODUCT QUALITY AND ASSURANCE
 
Turnall products are manufactured to consistently meet or surpass quality standards and specifications.  Turnall pressure piping is manufactured to SAZ SABS  industry standards which ensure long term corrosion resistance, thermal and electrical insulation, constant carrying with low friction head and fast and efficient laying with Turnall ‘fluidtite’ joints.
 
Turnall fibre-cement roof sheeting and tiles provide long term durability and strength and are also manufactured in compliance with SAZ and SABS industry standards. Recently Turnall was acredited with the SABS 9000:2000 Standard together with a SABS audited ISO 14000.
 
CUSTOMER TRAINING
 
Turnall offers comprehensive product training for customer employees’ , covering product specifications and correct handling and installation.  Product seminars and Workshops can also be arranged to include practical on site product handling and installation demonstrations.  
 
EMPLOYEES

The division currently employs 1 000 permanent employees with an average age of 38 years.  Contract staff are employed as needed.
 
CONSTRUCTION INDUSTRY
 
Turnall keeps abreast of all industry trends and technical developments and actively participates in and supports industry bodies such as CIFOZ and ZBCA.
 
Turnall also maintains well established relationships with construction companies and numerous corporate players and stakeholders in the construction industry.
 
SUPPORT SERVICES
 
As a complimentary customer support service, Turnall provides free technical advise and site inspections during all critical phases of roofing and piping installation.Turnall also supplies quotations and bills of estimates for all roofing and piping projects.Instructional videos and
technical manuals are also available to customers on request.