'Lobatse Clay Works back to business'
The Caretaker CEO of Lobatse Clay Works (LCW) Boitshwarelo Kgetse has revealed that Botswana Development Corporation has spent around P79 million on the refurbishment of the plant, which has been closed for some time.
LCW is a BDC subsidiary which closed shop in 2017 following operational constraint and fierce competition in the brick making industry.
Addressing the media following a tour recently, Kgetse explained that LCW used to be the leading company in the brick making industry in Botswana and they want to take their business back to its hay days.
“What we are currently doing is implementing a turn around plan,” Kgetse explained that they paused to re-llook at the brick making industry and reassess their business strategy.
The refurbishment of the LCW plant began last year May and they are looking to restart production around August or September of this year. It is their hope that they will once again stimulate economic activity in Lobatse and Botswana.
Kgetse said that they want to create around 140 direct jobs in their first phase of restarting the business. Almost double of the number of jobs that LCW will create will be created indirectly.
Furthermore, Kgetsesaid the restarting of LCW will reduce the importation of bricks. After the market research they are now looking into the region. They have already set their eyes on the north-west region of South Africa, Namibia and Zimbabwe.
“With the refurbishment, we are looking at a more efficient approach of business,” Kgetseexplained that through output and throughput they want to cut costs and increase production at the same time.
LCW currently retains nineteen employees to keep the lights on at LCW whilst they refurbish their production plant.
Kgetsi explained that the old plant was costly especially on the input of raw materials such as fuel. With the refurbishment going on, the plant will now use a hybrid system which will be cheaper and much more cost effective than their previous equipment.
“When we ceased operations at peak performance we were producing 3 million bricks per month (36 million bricks per year),” Kgetse said it is their intention to beat the numbers they use to produce.
Kgetse said they will now be able to reduce costs of production because of their hybrid production plant.
This is because the hybrid plant allows for a mixture of coal and fuel depending on the quality of brick one wants to produce.
LCW wants to have an Internal rate of return (IRR) of seven percent and they want to break even within the first two years of operation.