25 August 2008
Gaborone — A can manufacturing factory in Lobatse has said it is threatened by many challenges, chief among them, skyrocketing steel prices.
General manager of Can Manufacturers Botswana - originally known as Canmaster - Booker Bannister revealed the fact that the country is landlocked is another major threat. "Currently we are witnessing the high cost of producing raw materials worldwide and emerging markets such as China grabbing up all the available steel and basically setting the tone of the market prices," Bannister complained. "The other challenge is lack of alternative price competitive quality steel supplier in the region and at times (it is made worse by) our geographic location as our country is landlocked from the seaports," he added. Most of steel used in the world is produced by two companies, Mittal Steel and Tata.
Currently, Can Manufacturers can produce 600 cans a minute. But it anticipates that its expansion plan will push the consumption of steel to over 8,000 tonnes per year.
At full production and on a double shift, the factory is able to produce 500,000 cans per day.
"We continue to look at ways of buying cheap raw materials without jeopardising the quality," Bannister said.
Botswana Development Corporation (BDC) has so far invested P126 million into the company. The company's second production line is underway at a cost of P76 million. Situated in Pitikwe in Lobatse, Can Manufacturers is one of the many companies sponsored by BDC in an attempt to revive the economy of the town that relies heavily on the Botswana Meat Commission (BMC).
Bannister conceived the idea of manufacturing cans in 1997 under the mentorship of Flemming Hansen and Ole Orets. The three started Canmaster and approached BDC in 2001 for funding. A study by BDC showed that such an operation would be viable. The company is a fully owned BDC subsidiary.
BDC has invested P126 million in the project that boasts the latest technology in the can manufacturing technology. Last year, the factory started producing three-piece food cans (73/70x 109.0 mm, 65x 89 mm and 65 x 102 mm) that are predominantly used in the canned fish, fruit, vegetable and meat industry.
Can Manufacturers supplies Zimbabwe, Zambia and South Africa and it is looking at expanding to Namibia and Mauritius. Locally, it sells cans to BMC, which has supported the company when it was still new. There are 30 workers employed at the company's capital intensive factory.
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