Batsa closure follow-up: Community leaders warn of impact as Batsa exits Heidelberg
Local leaders are deeply concerned over the BATSA’s imminent closure, as hundreds face job losses and uncertainty looms over the local business’ future.
Concern is growing about the impact on the town and its residents following British American Tobacco South Africa’s (Batsa) announcement that it will close its local manufacturing facility by the end of 2026.
Batsa confirmed on January 14 that the factory, operational since 1975 and one of Heidelberg’s largest employers for more than 50 years, will cease operations due to the rapid growth of the illicit tobacco trade.
The company estimates that illegal cigarettes now make up 75% of SA’s cigarette market, making local manufacturing unsustainable.
In response to the announcement, the Heraut spoke to several Heidelberg community leaders about the closure’s expected impact.
Ward 9 Clr Gerry Holtzhausen said the decision would have serious consequences for the town and its people.
“We have mixed feelings about the closure. It was not supposed to happen. Batsa has been part of Heidelberg for over 50 years and employed many locals over that period,” he said.
“Bad government policies have been the downfall of many businesses and, unfortunately, Batsa is one of them.”
Holtzhausen added that the warning signs had been visible for several years, “The signs were already there around 2019. Covid played a major role in stalling cigarette manufacturing, and lockdown policies allowed illegal cigarettes to flood the market, making official manufacturing plants ineffective.”
When asked about the broader impact on Heidelberg, Holtzhausen said the effects would be far-reaching.
“It will have a huge emotional and psychological impact on the community. There is also a possibility that property prices could be affected. To stop a downward trend, the municipality must become more business-oriented and actively attract new businesses to Heidelberg. There are very few large businesses in the town, and this closure will be deeply felt.”
Ward 8 Clr Yvonne Combrinck agreed, saying the closure is a big loss, but it did not come as a surprise.
Patricia Meyer from the Solidarity Helpende Hand’s Heidelberg branch said the social impact would be significant.
“I believe it will hugely impact Heidelberg and its community. It will increase the burden on social workers and place additional pressure on affected families. The closure and retrenchments will have far-reaching consequences for everyone involved.”
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