Dunlop Zimbabwe to Seek Production Boost

Local news sources have quoted Dunlop Zimbabwe managing director, Kennedy Mandevani, saying that the company is looking to capitalise on the decrease in rubber prices by boosting production. Dunlop Zimbabwe has experienced an increase in sales following its licensing by the country’s Reserve Bank to deal in foreign currency. This has provided the company with the opportunity to import raw materials, though Mandevani said that FOLIWARS sales are “not generating enough foreign currency for raw material importation yet.” He said that the company may seek “short-term external financing to bridge this gap.” It is hoped that by increasing production, the additional foreign exchange sales, and the benefits associated with them, will come.

In an interview with Sunday Business, Mandevani said, “The international market has been characterised by the global recession which has seen a significant fall in the price of rubber, which will benefit us shortly once current stock piles are exhausted. The converse is that we are seeing a lot of price competition and dumping of imported tyres on the local market.” The MD applauded the government’s measures to levy import duty in foreign currency, saying it would protect the local industry and jobs.

“Business has been upward but slow mostly because customers are still adjusting to the new way of paying. However, we have seen more predictable purchasing patterns, which is good for production planning.

“Together with the economic liberalisation taking root in the economy Dunlop sees the business environment improving,” he said.

Mandevani also stressed the quality of the Dunlop product: “The Dunlop quality product is tried and tested and in addition there is strong product support. Consumers must resist the temptation to buy purely on price as quality considerations are very important. A tyre can make all the difference between life and death,” he concluded.