14 February 2013

Zimbabwe: Chemplex Bemoans Low Demand

CHEMPLEX Animal and Public Health is operating at 20 percent capacity as demand for its products remains low, an official said last Friday. CAPH manufactures top animal and public health products such as Deltaguard, Tickbuster, Guard rat killer and grain protectant, Chikwapuro.

Managing director Dr Spencer Ruziwa said that the low product demand was primarily a result of liquidity constraints consumers were facing.

"We have no production challenges. Current capacity utilisation is 20 percent because of demand problems," he said.

The Veterinary Services Department which has not been procuring animal health products due to budget constraints is CAPH's biggest client.

Dr Ruziwa said profitability had gone down due to low demand.

"We are now trying to cut costs and we are automating some of the processes," he said, adding the company had since acquired an auto packaging machine.

"Our profitability has gone down but at the moment, we are still profitable."

He said raw materials from suppliers in China, Latin America and Europe remained steady.

New Ziana

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