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The Herald: Cairns Increases Capacity Utilisation
4 June 2009
Harare — Food and beverage manufacturer Cairns Holdings has increased its capacity utilisation from an all time low of below 10 percent last year to around 30 percent, an official said on Tuesday.
Group chief executive Mr Philip Chigumira said volumes started increasing after dollarisation of the economy early this year.
"Since the dollarisation there has been an upturn in terms of volumes which is a big improvement from where we were last year," he said.
He, however, bemoaned the low purchasing power among consumers due to shortage of foreign currency.
"Shortage of foreign currency is still a bottleneck. We need to create demand for foreign currency in the market," he said.
Mr Chigumira said the group was targeting to increase its capacity utilisation to 70 percent once the economy fully stabilised.
"We are optimistic in terms of the trends that are obtaining in the economy," he said.
Mr Chigumira said Cairns was facing various other challenges, which included financial constraints, shortage of raw materials and spares.
He said the company required at least US$7 million for recapitalisation.
Meanwhile, Mr Chigumira said the company was maintaining its exports at 12 percent while it focuses on satisfying the local market first.
"Our priority is the local market," he said. "We want to satisfy the local market first, maintain our dominance and then concentrate on the export market."
Cairns exports mainly to the Sadc region and the United Kingdom.
Imports from the region, Mr Chigumira said, were not a threat to the company as it had the requisite technology and skills to compete with both regional and international players.
Cairns has diversified interests in winery, canning, groceries and production of snacks and spices among others. |
