eBusiness Weekly
Business Writer
Border Timbers says recapitalisation plans remain a key priority for the company with the replanting programme already on course to reduce the unplanted area to industry standard of 5 percent in the next three years.
The company was placed under Voluntary Provisional Judicial Management in 2015 and subsequently into Final Judicial Management in 2016.
However, following approval by the Shareholders at the EGM held in January 2022, and the subsequent approval by the High Court on March 14, 2022, the company exited Judicial Management and the Board of Directors took over the control of the company.
Elias Hwenga, the company’s chairman said the fundamentals in the business remain intact, with healthy forests, a talented and experienced management team, and workforce to support the strategy.
“The company is in the process of recapitalising its two Sawmills with the latest milling technology and commissioning of the new machinery is expected by the end of FY2023,” he said in a statement of financials for the year ended June 30, 2022.
Hwenga said the company’s product quality remains highly regarded in the market and the current marketing efforts will increase demand for the company’s Kiln Dried Timber.
He added that improved performance is anticipated in the Poles business due to increased demand for the product in the SADC region where rural electrification projects and infrastructure developmental projects are attracting financial support.
“We forecast Poles sales performance to be bolstered by the Mozambique, Botswana, Zambia as well as the local market,” said Hwenga.
During the period under review, manufacturing treated poles sales volume was 10 169 m3 from 9 464m³ in 2021, representing a 7,4 percent improvement from the prior year.
He said market development remains the key focus of the Poles business as the company is actively pursuing new opportunities in the local market as well as in the region and beyond.
During the period under review, 713 hectares from 341 hectares were planted, a significant improvement compared to prior year.
Hwenga said the company is focusing more on improving the Biological Asset, applying best practices, and improving planting methods.
“The company continues to benefit from outsourced Silviculture operations which brought about a more cohesive and efficient plantation management process,” he said.
He added that the company is fully mindful of the impact of climate change on the planet and is adapting and conducting its operations in a way that is environmentally friendly.
“This consciousness prompted the company in succeeding to attain Forest Steward Council (FSC) Certification. With Imbeza Estate already certified, we are moving forward to having Sheba, Charter, and Tilbury Estates FSC certified by the end of 2023,” said Hwenga.
He indicated that plantation fire damage remains the major business risk, particularly arson.
Hwenga noted that during the year, the company lost 235 hectares compared to 27 hectares in 2021 which is significant compared to the previous period.
“As a result, the company has further strengthened its plantation patrol teams, community engagement programs and acquired new firefighting equipment.
“We are grateful to the Community and law enforcement agencies for their efforts and assistance in apprehending perpetrators of arson,” he said.
Hwenga said no finalisation has yet been reached from ongoing negotiations with the Government of Zimbabwe on the settlement of the Border Timbers International Centre for the Settlement of Investment Disputes (“ICSID”) Award.
He said the company has recently initiated discussions with the Government on the settlement structure and timing of the ICSID award.
