AGRICULTURAL equipment maker Zimplow Holdings said on Friday that it would invest more than US$4,6 million in its expansion drive by the end of this year as it angles for a broader growth initiative.
To lessen the effects on business caused by the closure of the Caterpillar (CAT) dealership for its unit, Barzem, the group is driving capacity development projects across all of its operating units.
The opening of new business units, Valmec and Tractive Power Solutions (TPS) as well as enhanced resource allocation to Scanlink and Trentyre units to improve performance and overall contribution to the group, are some of the major efforts.
The group on Thursday launched its fifth TrenTyre branch in the capital in an effort to increase the capacity of the subsidiary.
Zimplow chief executive Vimbayi Nyakudya told Standardbusiness on the side-lines of the TrenTye branch launch that this was part of the group’s broader expansion plans.
“In terms of Mealie Brand alone, we are looking at US$1,6 million so that we can get where we want to be,” Nyakudya said.
“For TrenTyre Branch network we are looking at not more than US$1 million both in terms of making sure we install all the necessities and the equipment.
“On Vamlec and other brands we will use roughly about US$2 million.
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“If you look at Tractive Power Solution (TPS), it was US$1,5 million because we have the capacity already.
“In terms of TrenTyre we now have five branches. Sometime last year we did two branches, Harare and Bulawayo.
“In September last year we opened the Gweru branch and now we opened this one.
“Going forward, we will need to see the Bulawayo branch up and running to its full potential.”
Regarding the Mealie Brand factory, Nyakudya said it had mainly concentrated on animal-drawn equipment, but the group was now expanding that capacity to look at other products.
“This year we will be looking at other products trying to commercialise products that we have already done or demonstrated that we can manufacture better than most players in the region.
“Secondly, we have got Tractive Power Solution which is a replacement of what we used to do at Barzem.
“With TPS, we launched it last year and we are now going to formally launch it to the market.
“We have approached a few of our customers to understand their needs and we believe with our capacity we have already built we can expand to look at servicing the customers we have serviced and those that we haven’t serviced before.
“Our access to supply chain capability and our access to skill is something that we believe will give us a platform to grow our business.”
Meanwhile, launching the Trentrye Branch, Nyakudya said Zimplow was evolving and refining its identity around the key economic sectors such as agriculture, mining and infrastructure.
TrenTyre, which focuses on the manufacturing and distribution of tyres, has an extensive branch network that spans the country's most vital mining, agricultural, and industrial regions.
The Zimplow boss said the group had long-standing partnership with global manufacturers that offer a wide variety of products and brands, including Goodyear, Sava, and Kelly.
TrenTyre is a member of the Zimplow Group, a participant in the logistics and automotive cluster. It was founded in 1997, and in 2021 it became part of the Zimplow Group.
In addition to tyres, the unit also offers rims, tubes, retreading, and tyre accessories.
