BMA Fasteners says local mining demand has ensured that the company continues on a steady growth path.
BMA is a s
ubsidiary of Steelnet (Zimbabwe) Ltd, a major industrial firm under the SMM Holdings group.
Chairman Hillary Munyati said at BMA Fasteners buoyant local mining demand ensured that the company continued to enjoy steady growth in their rock bolt range.
“Although exports started slowly in 2003, compounded by the Zambian value-added tax issue, good progress was made into the South African, Malawian and Zambian markets in the latter half of the year,” Munyati said in his results for the period ended December 31.
BMA achieved a turnover of $9,7 billion for the period, which was an increase of 646% on 2002.
Another subsidiary, Hastt Zimbabwe said despite subdued demand from local commercial agriculture, the 68% volume growth in Haka animal drawn implement sales, combined with steady regional exports saw the company’s turnover grow 637% to reach $7,3 billion for the year.
“The economic landscape has changed significantly since the close of 2003 with the introduction of the new monetary policy,” Munyati said. “The enhanced productive sector finance facility has enabled the group to convert its short term borrowings under this very welcome scheme.
However, local demand has declined significantly in 2004 as customers re-align to the new environment. Exacerbating this, the new foreign currency blend rate for exporters combined with spiralling local inflation has made returns from our export markets extremely marginal.”
The chairman said despite this pressure on margins the group remained committed to protecting and expanding its regional market share.