Proplastics solar project to be complete by mid-year

PROPLASTICS Limited, a plastic pipes and fitting manufacturer, is procuring equipment for a solar project and aims to complete it by the end of the first-half of this year.

The solar plant is expected to help reduce production costs, minimise operational downtime and ease power supply limitations.

Electricity supply remains a significant challenge for Proplastics, with power cuts resulting in factory closures and frequent use of expensive standby generators.

Proplastics chairman, Mr Gregory Sebborn, said that the solar project would reduce the group’s carbon footprint and significantly reduce production costs, as the solar plant would be fully integrated into the existing electricity supply system.

“Although the supply of electricity is relatively stable now, this remains a risk for the business. The solar generating project, which was reported on at half-year, will commence before the end of the first quarter as the procurement process for the requisite materials is already underway,” Mr Sebborn said in a statement accompanying the company’s abridged audited financial results for the year ending December 31, 2023.

“This project will not only reduce the group’s carbon footprint, but will, in addition, have a significant positive effect on the production costs, as it will be fully integrated into the existing Zesa and generator supply model. We expect the project to be up and running by the end of the first-half of the year.”

Mr Sebborn said a total of 47 days of back-up generator usage was recorded during the period under review, resulting in a significantly higher cost of production.

Zimbabwe is investing in solar and to a lesser extent hydro power to reduce energy-related emissions as part of the Government’s strategies to reduce energy-related emissions by a third by the end of 2030.

Solar investments, even at household levels are gaining momentum in the country.

According to preliminary 2022 Population and Housing Census report, 30 percent of households now use off-grid electricity.

The total number of people using off-grid power stood at about 1,1 million, almost a third of the households in the country.

Meanwhile, the group turnover for the full year grew by 22 percent to US$21,3 million from US$17,4 million in the prior year.

Mr Sebborn said the growth was underpinned by a 22 percent increase in sales volumes compared to prior year.

“The contribution from the recently commissioned new plant was significant and should continue anchoring sales volumes going forward.

“Exports sales recorded a 102 percent growth, with a contribution of 11 percent to total sales,” he said.

“The group secured some lucrative contracts in the region, some of which will continue into the new financial year.”

During the year, Proplastics proposed and paid an interim dividend of US$0,0011 per share. Mr Sebborn said given the subdued performance for the year and the need to conserve cash, the board proposed that no final dividend be declared. —chronicle.c.zw