MURRAY and Roberts (M&R) has been awarded a $300 billion construction tender by an unnamed telecommunication company, businessdigest can reveal.
Managing director, Canada Malunga, confirmed the firm had won the tender
, but declined to name the telecommunications firm, saying the deal was in its final stages.
He said the contract would give M&R a lifeline, considering the situation prevailing in the construction sector but the impact would have been bigger if it was a civil and construction project.
He said they were going ahead with restructuring of the company.
A fortnight ago, Malunga announced that M&R was now focusing on its core business of construction and manufacturing of construction and infrastructural materials, and would dispose of all non-core businesses.
The company has since disposed of one of its main agro-businesses — Bonnezim — and is currently finalising disinvesting in other small projects.
The company reported in its results for the year ended December 31, 2005 that the construction industry had performed dismally.
“Construction posted another disappointing performance due to continued disruptions to operations following repeated failures by certain contractors to meet payment obligations on time,” said chairman, Paddy Zhanda. He added that two such significant contracts had since been suspended.
Zhanda said that high inflation continued to wreack havoc in the construction sector resulting in overheads outstripping income.
He said that a review of the construction business was currently underway and would result in the business focusing on civil engineering and building for selected niche markets.
Zhanda said the group manufacturing division’s performance was slow in the first quarter due to lack of raw materials but picked up significantly in the second quarter following changes in the foreign currency market. — Staff writer.