Border Timbers Individual Feature

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B o r d e r T i m B e r s

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Ou t Of the

B order Timbers is Zimbabwe’s leading timber producer – in 2011 it reported

increased revenues and annual turnover, buoyed by improved local and regional demand for its products growth.

It core business, for those that don’t already know, includes growing, milling, manufacturing, and selling of hardwood and softwood timber in Zimbabwe and exporting.

What the company achieved in 2011 is remarkable, set against a

backdrop of power, liquidity and law and order chaos, as well as a tax authority that it’s chairman said “assumes impunity”.

It also came under increased cost pressures.

All in all it was pretty challenging.But Border Timber’s achievements

have been many - improved production, improved silviculture, improved capital allocation, improved industrial relations, and importantly an improved profitability.

That profitability would’ve been higher if a strong rand hadn’t added roughly six percent to its cost base.

woods?

Zimbabwe’s leading timber producer, Border timbers, has a lot to contend with as south

Africa magazine discovers. By marie Toms

Border timbers focus Food & AGriCULTUre

3www.southafricamag.com

“The increase in revenue is a very rewarding conclusion to the year and I would like to commend all concerned for achieving a much improved production,” said chairman Kenneth Schofield in the firm’s annual report. “Looking through to the cash generated, it is clear that we have some way to go to convert production to cash in the bank – or at the very least - cash invested back into the assets.”

Sadly though, the future is uncertain.Firstly, Border was hit by a major

fire during 2011 and the group lost

193,000 ha of planted area, the bulk of which were arson-related.

Fire damage continues to be a major concern to the long-term viability of the forests.

Power outages at the factory have also caused problems, as have the prices it has to pay for diesel, which made diesel-generated power uneconomic.

“Power supply has been part of the competitive advantage enjoyed by Zimbabwe in the past in building an industrial base. Government must define the role of power in the development of the

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future of the country in a clear and focused way that allows industry to plan its own investment. Diesel generation is not the way – unless we plan on Somalia being a role model for development!,” Schofield’s annual chairman’s statement says.

As if that wasn’t enough, at the turn of the year scores of villagers settled in the company’s timber plantations.

Plantations at the Charter estate in Chimanimani were worst affected.

“About 2,500 ha of our estate has been illegally

taken over by villagers who have parcelled themselves pieces of land. Our hands are tied because the invasions are being coordinated by politicians,” an estate manager who refused to be named for fear of victimisation told reporters at the time.

According to those reports, the affected estates were Zipras, Chinyai and Skyline where the illegal settlers cleared all the timber and substituted the trees with maize and rapoko crops.

Company officials also accused the invaders of causing veld fires which destroyed newly planted trees.

The increase in revenue is a very

rewarding conclusion to

the year

To us the odds are not determined by the contents of your package.

It’s about getting the package there, whatever the size, through whichever means,

to whatever the destination.

FREIGHT SERVICESFREIGHT SERVICES

Freighting Naturally, Across the Globe.



Having survived the chaos of the past decade that has devastated the Zimbabwean economy, it would be a shame to see Border Timbers go as a result of this.

But that is just a possibility. Not a reality. Border is in the middle of a rebuilding programme and its positive results for 2011 showed an increase in demand for transmission poles with enquiries coming from as far afield as Uganda.

Border is recognised as one of the premium suppliers of poles in Southern/Central Africa and as Africa’s economies continue to grow, the demand for electricity will be a strong driver of demand for its products.

There was also a firm market demand with the group continuing to maintain its position as the premium supplier of kiln dried timber to the local market.

ABOUT

Border Timbers Limited was incorporated in 1979 through an amalgamation of three companies - Border eastern Forest estates, renfee Timbers (Pvt) Limited and Forestry management services. The company has three divisions - Forestry, sawmilling and manufacturing. The forestry division manages a total of five estates. Tilbury, Charter and sawerombe are in the Chimanimani area to the south of mutare town, while imbeza and sheba are to the north in the Pennalonga area. Logs harvested by the division are processed at the three sawmills in Charter, Tilbury and sheba. The first sawmill was established at Charter in 1953 and today it is one of the largest and most modern sawmills in southern Africa. The sawmilling division has capacity to process 300 000m3 of saw logs annually. most of the timber produced from the sawmills is further processed into valued added products by the manufacturing division which is made up of Paulington factory, Border Timbers international as well as a Pole treatment plant all in mutare. The manufacturing division exports most of its output into both regional and international markets.

Address: Ground Floor

Anglican Diocese of Manicaland Building113 Herbert Chitepo Street, Mutare

Email: [email protected]: www.freightzone-logistics.com

Tel/Fax: Tel/Fax: 020-62919Cell: 0772 874 408

Shawshanks Enterprises Private Limited is a company specialising in customs clearing services and started trading on the 21st of December 2010 trading as FreightZone Logistics. We are a Zimbabwean company and eager to excel and expand. This has seen our company growing from an establishment of two staff members to the current seven employees in only one year of operation.

Our Business RelationshipsWe have forged ties with many companies, including Continental Logistics & Freight and Border Timbers.Logistics & Freight and Border Timbers.

We offer the following services:· Customs Clearance for imports and exports· Customs consultancy services· Delivery of cleared consignments – Within Harare and Harare to Mutare

· Removal in Bond or Transit (To and from · Removal in Bond or Transit (To and from Forbes-Chirundu and Chirundu to Beitbridge)

· Commercial goods and vehicle guarantee (CVG)· Consignment tracking

We take you ahead of the customs clearing game

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“Prices have in the export market recovered and the Group is geared to take advantage of this development. South Africa and Botswana have remained the Group’s leading export market,” Border said.

Zimbabwe is a country where there has been substantial wealth accumulation in the hands of a relatively small number of people and a growing underclass of poor who will pressure for a part of the “better life” that is simply not being provided.

Border is hoping for some dramatic improvements in the near future and is seeking

international finance to safeguard its operations.

In 2011 it planted 1,276 hectares as against 562 felled and the firm made several improvements in its sawmills, with a focus on investing in new equipment.

The South African lumber market grew by nearly eight percent in 2011, while Mozambique in particular has seen huge potential investment in forestry and Zimabawe has the opportunity to re-establish itself as a key player in the regional forestry sector. eND

To learn more visit www.bordertimbers.com.

south Africa and Botswana have remained

the Group’s leading export

market

Aberdeen Road P O Box 458 Mutare, Zimbabwe

Tel: 020-64224 Fax: 020-64142/020-65107 Email: [email protected]

www.bordertimbers.com

south Africa magazine, suite 9 and 10, The royal, Bank Plain, Norwich, Norfolk, UK. Nr2 4sF

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eNquiriesTelephone: +44 (0) 1603 343367Fax: +44 (0)1603 [email protected]

suBscriptioNs Call: +44 (0)1603 [email protected]

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Border Timbers Individual Feature

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