Diversified construction material firm PG Industries has announced that it has decided to expand its regional operations as it anticipates low activity on the local market.
The Zimbabwe construction …
Diversified construction material firm PG Industries has announced that it has decided to expand its regional operations as it anticipates low activity on the local market. The Zimbabwe construction material firm said the regional expansion strategy has been caused by growing demand for housing in Zambia and Mozambique, while the recovery of the local construction industry had been slower, due to lack of liquidity of prospective home builders. “As growth in the domestic market is anticipated to be slower, the group has embarked on a strategy to enter regional markets of Mozambique and Zambia where there is growing demand for housing,” said the group in a statement. PG, which is a supplier of timber, doors and glass, said it has been granted regulatory approval to expand operations in Zambia, a project that has been on the cards for a long time having been stalled in 2006 following reservations by the Ministry of Finance over exchange control regulations: “The Zambia project is at the implementation stages as regulatory approvals have been granted by both countries”. The group said that regional growth efforts in the period under review, were directed to PG Mozambique, which had a turnover of USD 299,000. “With improved resourcing, this market has opportunities and should prove profitable,” the company said, and which is also planning to establish regional operations in Botswana and other economies in transition in Southern Africa, where new investments in industries, residential and commercial infrastructure are driving construction activity. The company said the group has initiated a capital raising project to raise funds to finance the operations for growth in response to the funding challenges of the first half. “In the short-term, the group will continue to focus to regaining market share, improvement in service levels and strengthening win-win long term supply relationships will all key suppliers, both local and foreign,” the company said. PG Industries has 11 subsidiaries in Zimbabwe, including PG Building Supplies, PGCreative Paints and Glass, PG Timbers, PG Safety Glass, PG Properties, Zimtile, Johnson and Fletcher, Msasa Timbers, Manica Boards and Doors, Zimboard Distribution and DST.