Allied Timbers sets the pace

THE successful turn-around of State-owned timber producer, Allied Timbers Zimbabwe (ATZ) is a good example that should be emulated by all parastatals as the country moves towards the achievement of Vision 2030, a Cabinet Minister has said.

Allied Timbers, which was reeling under low capacity utilisation in recent years, has had a remarkable turn-around that has seen the timber producing concern declaring profits after acquiring machinery from its own coffers.

The company recently acquired a US$13,3 million plant to become the largest timber processing plant in the country with the capacity to generate at least 42 000 cubic metres of timber that can generate some revenue of about US$12 million every year.

The sawmill is processing timber from the plantations at Cashel, Nyambeya, Mudimu and Tandayi and over 900 hectares of timber are envisaged to be harvested annually.

In a wide-ranging interview with Post Business on the sidelines of the Ministry of Environment, Climate, Tourism and Hospitality Industry’s strategic planning workshop held at a Vumba Hotel this week, Minister

Mangaliso Ndlovu said Allied Timbers is using internal resources to invest in modernising its processes.

“Allied Timbers is now declaring a dividend and that is commendable. They are using internal resources to invest in modernising their processes. We believe that is the right way. This is the road that Government parastatals should take as we move towards the achievement of Vision 2030,” said Minister Ndlovu.

Allied Timbers has also invested in electricity to the tune of US$2 million, and this has seen the improvement of the energy supply in Cashel and surrounding areas.

When the new sawmill was officially commissioned by President Mnangagwa in July this year, Minister Ndlovu described the development as a game-changer that will contribute to the transformation and growth of the country’s economy.

“This strategic investment will unlock further value of forestry resources at Cashel Estate for the benefit of local communities and the nation at large. The increased production volumes will spur export revenues from the current US$600 000 to about US$1,1 million per month.

“This is almost double the current levels because the product is of superior quality and gives ATZ a competitive edge, particularly in the export market,” he said, adding: “This investment will be recouped in three years, thereby giving the company value for money within a very short space of time. This project is another example that, indeed, none but ourselves are responsible for building our own country.”

Minister Ndlovu also applauded ATZ for its forest replenishing efforts through nurseries establishment, which is an important component of the timber industry value chain and ensures sustainability in the sector.

In 2021, the company planted nurseries covering an area of 2 800 hectares against a total harvested area of 1 868 hectares.

The area planted last year was the highest in the past decade.

This year, there are plans to plant 6 030 of the unplanted area and by July, ATZ had already planted 4 000ha and was well on course to beat the target.

In addition, following the acquisition of fire-fighting equipment from Belarus, the giant timber producer managed to significantly reduce the area destroyed by fire from 2 058ha in 2020 to 570ha in 2021.