High rentals hamper engineering firm's operations

Published: 29 August 2017

LOCAL engineering firm, White Site Engineering is struggling to make a breakthrough as a result of high rentals and lack of affordable working capital.

Management made an appeal for assistance to Government during a tour of the firm in Bulawayo yesterday by Industry and Commerce Deputy Minister Chiratidzo Mabuwa.

White Site Engineering sales and marketing manager, Ms Charity Mudhubiwa, said they wanted Government to help them with working capital so as to expand operations and meet demand particularly for the small scale mining and agriculture clients.

She told Business Chronicle after a closed-door meeting with Deputy Minister Mabuwa that working capital would also help them to own their operating space as high rentals were a major constraint.

"We are appealing to the Ministry of Industry and Commerce to help us with the working capital to have our own factory to reduce the cost of production. We also want to give our clients products on hire purchase because we have realised that most of them want to buy machinery but they don't have money to pay at once so we want to meet their demands especially those in mining and agriculture," she said.

"We would want an amount of $100 000 going upwards because we want to increase our production by expanding and having more machinery because we are hoping to have a foundry. Expanding on the lifting equipment side is very important because that is the type of work that needs special attention."

The Bulawayo based company manufactures a wide range of mining equipment, which include amalgam barrels and stamp mills. Ms Mudhubiwa added that rentals were draining the bulk of their income hence they needed their own operating space.

She said if they secure working capital they would increase the work force of 21 people because a lot of work would be created.

"The rentals really takes more from us let's say in a month they take about 30 percent. So if we own our operating space we will reduce that percentage and be able to increase our current employment numbers of 21 to create more job opportunities," she said.
- chronicle

Tags: Engineering,