The non-asbestos venture embarked by Turnall Holdings recently in the wake of the asbestos ban in neigbouring South Africa is on course for commissioning in the fourth quarter of this year, according to the company's chairman, Mr. Herbert Nkala. 

Commenting in a statement accompanying the company’s financial results for the year ended December 31, 2009, Mr. Nkala, said the non-asbestos plant project was now expected to come on stream following the first drawdown in August 2009 from the US$5 million facility extended for the project. A Letter of Credit for the balance of the loan had also been established.

The US$5 million loan facility was recently approved by PTA Bank, a regional financial institution headquartered in Kenya. The bank also runs a sub-regional office in Zimbabwe and provides lending facilities to export oriented companies.

“The manufacturing of the equipment is now at an advanced stage and progress deliveries are expected to commence soon,” said the chairman in reference to the equipment to produce asbestos free products which is currently being manufactured in Italy.

The new plant, with the latest fibre technology equipment, would be the first of kind in Zimbabwe and Turnall Holdings would be the first company to produce asbestos-free products in the country. The non-asbestos plant would be strategically located in Bulawayo as it would cater mainly for the export market.

Turnall currently exports its range of chrysotile fibre cement products to Mozambique and Botswana. The asbestos free products would be earmarked for South Africa and other traditional markets.

Commenting on the performance of the company in the same statement, Mr. Nkala, said as a result of the relatively improved macro-economic environment, Turnall posted a profit before tax of US$2,4 million. An attributable profit of US$1,5 million was also achieved during the period under review. Basic earnings per share were recorded at US$0,32 cents.

The profit was realized at the back of a revenue base of US$16,5 million, of which 6,1 percent contribution was from export proceeds.

Sales volumes during the year under review stood at 43 000 tonnes, slightly below the

44 000 tonnes achieved the previous year.

The chairman attributed the reduced sales volumes in 2009 to the depressed demand in the first quarter of the year, which gradually improved during the second half of the year.

“The improvement in sales volumes witnessed during the ensuing months is largely traceable to the onset of the agricultural selling season which started around April 2009 through to September.

“The improved inflows from tobacco, cotton and maize underpinned the company’s sales performance during the latter part of the year and drove capacity utilization which rose from 12 percent at the beginning of the year to close about 40 percent by year end,” said the chairman.