Itai Ndongwe
HARARE- Art Holdings is targeting 100 tonnes per month at its Softex tissue plant in Harare as it stabilises following its relaunch earlier this month. The plant has been scaled back to fit a blended trading and manufacturing model after the company exited paper milling operations, focusing on a lower cost base, greater flexibility and leveraging its strong brands.
Art Holdings Finance Officer Abisai Chingwecha told FinX that, “Production volumes are expected to gradually ramp up to approximately 100 tonnes per month as the operation stabilises. The streamlined setup benefits from a lower cost base, greater flexibility and strong brands.”
He added that the company remains cautious about industry challenges, including stiff import competition, power supply constraints and high input costs. As such, management is prioritising profitable product lines and segments over volume growth, aiming for sustainable operations.
Meanwhile, Art is disposing of under-utilized properties in Mutare and Kadoma linked to its discontinued paper milling operations. Agents have been engaged to facilitate the sale of the Kadoma plant and equipment, with the disposal process ongoing.
“These assets are classified as “held for sale”, and the disposal process is ongoing,” he added.
While specific valuations and expected proceeds are yet to be disclosed, the company will communicate any material developments in line with regulatory requirements.
This strategic shift underscores Art Holdings’ focus on optimising its operations and strengthening its position in the tissue manufacturing sector.
