In a move aimed at increasing kerb stones production output, the giant pre-cast concrete producer–Kwena RoclaÔÇödecided to build an additional facility to fill the gap.
“Botswana Development Corporation (BDC) gave us the authority to build new plant to meet demand for kerbs,” revealed Glen Ansell, Kwena Rocla Managing Director, adding his company is well capitalised to undertake such project.
Employing, 200 people the Phakalane based company early this year won a major tender to supply 50, 000 tonnes of pre-cast concrete products for the multi million Pula Gaborone Sewerage Project.
The new kerb factory has employed 26 workers who can be mobilised quickly.
The move follows concerns after Rocla lost 4 percent of the market share because of shortfall in the production of kerbs.
The new factory allowed the company to buy its own kerb moulds by investing money to procure such equipment.
“We set the plant in two months and 1200 tonnes of kerbs are produced every month. We used to rent moulds, but everything now belongs to Kwena Rocla,” Ansell said.
At the moment, Kwena Rocla produces 600 m of curbs a day and it has to supply 200, 000 km of curbs.
Kwena Rocla is a joint venture between BDC (49 percent) and Rocla SA (51 percent) and it supplies concrete products, which is not only the flagship of Botswana, but the SADC region.
Its products range includes manhole covers, culverts, curve stones and sewer pipes amongst others.
Controlling 92 percent of the domestic market, its biggest competition is South Africa’s manufacturers that have been trying to gain the Botswana market; running away from the recession across the border.
Early this year, the company became the envy of the industry after it was sub contracted for a R120 million (about P113 million under the current exchange rates) government tender as part of the contract awarded to China Jiangsu International to upgrade the sewerage system in the greater Gaborone.
From its track record, the Chinese contractors enlisted its expertise to supply the pre-cast concrete products.
The company said its storm water pipe has a lifespan of 100 years and beyond and these pipes come in sizes of 300 mm to 1800 mm.
Ansell said the recession has been a good one for them “Government’s lack of spending gave us a breather to catch up.”
Currently, Kwena Rocla’s major clients are the Chinese contractors who control Botswana’s construction market.
Consuming 86 percent of their products, it represents a big clientele, especially that public works worth P20 billion are undertaken by Chinese companies. It is believed that there are currently 48 Chinese companies bidding for Botswana’s construction cake.
The rest of the clientele is Botswana companies with less South African companies except for Murray & Roberts and Stocks and Stocks.
“Their (Chinese) quality has improved in contracts,” said Ansell, whose company supplies 89 sites in Botswana, including other places like Zambia.
The dominance of the Chinese has forced Kwena Rocla to translate its product catalogues, technical data sheets and technical disks into Chinese to address the language barrier, which was a major impediment to striking deals.
Although, the Kwena Rocla factory was built in the 1980s, currently, it will cost P80 million to put one up.
Rocla’s annual turnover is between P250 million and P300 million. As part of promoting local industry, the company has stopped buying coal from South Africa and resorted to Morupule Colliery for its heating needs.
