LCW closed in 2017 as its plant wore out and became less efficient in the production of the bricks that have made it a household name in the country. BDC, the state investment and diversification agency, wholly owns LCW and has thus far invested P79 million in capital expenditure and working capital to refurbish the plant and prepare the business for operations.
Operations are expected to commence between August and September this year, and already clay mining is ongoing, BDC head of corporate affairs and strategy, Boitshwarelo Lebang-Kgetse told BusinessWeek.
Lebang-Kgetse added that under Phase II of the LCW’s turnaround strategy, the BDC would invest an additional P15 million which will largely be used for working capital.
“The second phase of LCW’s turnaround strategy will be focused on operationalising the business,” she said in response to BusinessWeek enquiries. “The corporation will make a working capital injection of P15m for the operations of the business. “The business ceased operations due to the wearing out of the plant, which became less efficient in producing bricks. “BDC then took a position to relook at the entire business, in order to improve efficiencies at all angles and to revitalise it through the development and implementation of a turnaround strategy that would bring it back to profitability.”
Lebang-Kgetse expressed confidence that LCW would be able to regain its market share and even secure regional orders for its products, despite the years it has been inoperational.
“Before the cessation of operations, Lobatse Clay Works was a major player in the clay bricks Industry having dominated both local and regional markets. “LCW had a good reputation in the market for supplying reliable, quality bricks before its closure. “They supplied over 40% of the clay face brick market then, and it is expected that this may be recaptured,” she said.
Lebang-Kgetse continued: “BDC invested in the development of a turnaround strategy that will ensure that the refurbishment of the plant leads to an increased and more efficient production of bricks allowing the company to compete and regain some of its market share in Botswana and export to Namibia, Zimbabwe, and the North-West region of South Africa.”
A rebranding exercise which includes the creation of a new logo, as well as public outreach activities is planned to market LCW’s relaunch.
At least 45 Batswana have been engaged for the plant refurbishment and it is expected that the fully operational LCW will create 141 direct jobs and many other indirect ones. Established in 1992, it is estimated LCW employed about 500 workers when it closed down.
LCW’s revival not only boosts the economy of Lobatse but helps the country’s efforts to increase its manufacturing base.
