DIVERSIFIED firm Zimplow Holdings Limited is aiming for a 50% increase in turnover for its mining business unit, CT Bolts, by capitalising on the development of new mines across the country.
Zimplow provides quality and innovative equipment solutions for agricultural, mining, and infrastructural engineering sectors.
Its agricultural segment includes Farmec, Valmec, and Mealie Brand, while its mining and infrastructural engineering segment comprises Tractive Power Solutions, Powermec, and CT Bolts
Growth for CT Bolts is expected to be driven by a robust order book as international investors continue to show increased interest in local mining activities, despite a dip in global mining prices.
In an interview with businessdigest at the company’s annual general meeting last week, Zimplow's acting group chief executive officer, Willem Swan, highlighted the strong order book driven by new mine openings nationwide.
While Zimplow experienced a drop in performance during the first five months of the year, Swan expressed optimism due to the increased order book and inquiries from the mining sector, particularly gold mines.
“The business unit is at the tail end of its certification process as it pertains to locally manufactured mining consumables such as roof bolts and shepherd hooks, together with the delivery of a nail manufacturing machine, which is expected to be done during the third quarter of 2024,” Swan said.
“The order book is actually very good, and we are looking at about a 50% increase in turnover.
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“And that is off the back of a couple of new mines that are opening specifically in the Lower veld, one in Hwange, and there is also a resuscitation of old mines. Bubi is one that comes to mind immediately,” he added.
Swan said during the first five months of the year, Zimplow's overall revenue recorded a 3% decline compared to the same period last year, with sales tonnage showing a 9% negative variance.
The decrease in volumes was attributed to reduced orders from various mining houses due to lower global mineral prices.
The decrease in volumes, Swan added, emanated from reduced orders from various mining houses due to a reduction in global mineral prices.
Recently, Zimplow pivoted back to a fully-fledged mining and infrastructure equipment solutions company, securing new distributorships for renowned global brands.
The company has established a strong presence in the supply of filtration, lubricants, and mining ground-engaging tools (GET), and has successfully secured service level agreements with key operators.
Swan also mentioned that global supply chains are currently stretched due to security issues in the Red Sea, forcing shipping lines to take longer routes around the Cape, which has affected Zimplow's shipments.
Despite these challenges, Zimplow remains focused on enhancing its products and services, ensuring competitiveness, and supporting the government's mining sector initiatives.
