The decision to keep the Tiger Brands food-processing factory, Langeberg-Ashton, open effectively for another year, announced by the company on Tuesday, is welcome news for an economy facing serious strain.
This was said by Ebrahim Patel, the Minister of Trade, Industry and Competition.
Following the previous announcement by the company that it would close its operations in Ashton in the Western Cape, Minister Patel met with the Tiger Brands CEO, Noel Doyle to convey governments concerns about the proposed loss of 4 500 jobs in the area.
He set up a high-level team of officials to consider alternatives to closure of the factory and they have been engaging the company and potential investors.
The company decision follows a ‘social compact’ between the company, its workers and farmers in the area that would assist to contain cost increases during the coming season.
“I wish to appreciate the efforts of all the stakeholders to save jobs. More work will need to be done to address the challenges identified in the discussions and we look forward to the company and its stakeholders finding a durable solution that can keep South African canned fruit on local and global shelves.
“The Langeberg operation is a significant exporter of canned fruit, particularly to Asian markets,” Minister Patel said.