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Steelnet to focus on trade of finished goods than manufacturing

Staff Reporter 26-05-2009

Steelnet, one of the leaders in the provision of piping, agricultural and fastening equipment would in the short term focus on trade in finished goods.

Company secretary Mr Ticharwa said the firm’s focus in the short term was in trade of finished products as the manufacturing was likely to be depressed.

This comes in spite of the changes in the operating environment especially after the ushering in of the new political dispensation. Inspite of this renewed cautious optimism, there is likely to be insufficient demand in the short term to support sustained manufacturing. As a result, trading in finished goods is likely to dominate local sales and options of matching the business structure to demand are being explored,” added the company secretary.

In addition to the focus of trade in finished products, the company is also exploring the possibility of accessing the lines of credit which are being funded by some authorities.

Apart from the sale of finished products, the company secretary also announced to shareholders that their Angola market had been growing and they wanted to keep the momentum.

“There was an economic slowdown in the first two months of 2009 with no meaningful trade recorded. While there have been improvements in the second quarter, trading remained very low with demand insufficient to support sustained manufacturing. The group has secured further significant business in Angola,” added the company secretary.

Steelnet has managed to penetrate the Angolan market especially because of its ox drawn equipment.

It has three subsidiaries under its umbrella which are Hastt, which specializes in the manufacture of farm implements including ox drawn ploughs, BMA Fasteners and Tube and Pipe Industries.

Steelnet was listed on the local bourse in 2003.