Mining and construction equipment handling company, Bell Equipment, aims to grow its manufacturing footprint.
The equipment and the materials handling equipment manufacturer plans to grow its manufacturing footprint in both its northern and southern hemisphere markets.
Chairperson Gary Bell and chief executive Leon Goosen, for the interim period ended June 30, said the growth plans included an increase of its manufacturing footprint in the northern hemisphere.
According to the equipment handling giant, the plan is to improve responsiveness by manufacturing more of the Articulated Dump Truck product closer to suppliers and the markets in which they were sold.
Independent Media Online reports that the capacity created in the Richards Bay factory in KwaZulu-Natal, would be used for additional products, which would be introduced in the southern hemisphere market over the next few years.
“To this end, underground mining equipment as well as seeking contract manufacturing opportunities utilising the core competencies and assets at the Richards Bay manufacturing facility have been identified for diversification,” said Bell.
“Additional funding lines are being put in place to fund the increase in working capital required to meet the higher production plan and sales outlook as well as to absorb the effects of any further supply chain disruptions.
“Strong focus remains on cash preservation, working capital, and expense management.”
The company also noted a rise in profits in the period, it gave 20 percent to R210.33, on the downside it chewed up working capital due to several headwinds to the tune of R1 billion.
This comes as its cash inflow for the period bled R176.7 million, down 167 percent from the prior corresponding period.
In Bell’s overview, it said while its manufacturing operations had increased planned production in response to global market growth and a strong order book, the continual supply chain challenges had delayed invoicing, leading to an increase in inventory and borrowings.
“Increased demand for commodities, country-specific post-Covid-19 stimulus packages, and an increase in infrastructure spend in a number of markets had stimulated demand during the first half of 2022,” said IOL.
The South African headquartered company also said a key focus for the group would be to ensure that the integrity of the supply chain was improved and the group said raw material, component, and logistics cost increases were unprecedented and had to be passed on to customers.
Image: Bell Equipment/Mining Review Africa
