Karbochem explores new prospects
"It was extremely important that the Newcastle community understood the closure of Karbochem’s rubber operations was a very difficult decision to have made."
Many townsfolk are holding their collective breath in the hope that speculation surrounding Karbochem’s financial instability is unfounded.
Rumours have been fuelled by the recent closure of the rubber plant which cost as many as 200 jobs, followed by news that millions is owed to the municipality in unpaid bills.
In an attempt to get to the bottom of the speculation, Karbochem was approached for insight into the allegations.
Karbochem revealed it has been actively seeking another industry to plug the gap left by the rubber plant and has entered into discussions with prospective industries.
“We are currently working on plans to bring new industries onto the Karbochem site, however negotiations with these parties are at a sensitive stage and we will only be in a position to provide more information once we have finalised current negotiations,” explained Abraham Brink, Chairperson of the Karbochem Board of Directors.
If successful, it will hopefully lead to job creation, which would be beneficial to the area.
According to Brink, Karbochem, along with other companies operating on the site, namely SA Calcium Carbide, Lanxess CISA and African Amines, is doing everything in its power to continue their respective industries despite economic concerns, but the Karbochem Board of Directors remained positive about the future of the companies.
“Karbochem and the companies on its site are all subject to changing economic circumstances. We all believe that we will have the acumen to manage whatever lies ahead, but we clearly have no crystal ball to accurately predict the future.”
When asked about the millions owed to the municipality in unpaid bills, Brink said he could not speak for the independent entities on the Karbochem site, but alluded to the relationship between SACC and the municipality.
“The numbers you mention refers to the relationship between SACC and the Newcastle Municipality.
Up to some stage in the past, SACC purchased their electricity requirements from the Newcastle Municipality through Karbochem, but then later decided to no longer work through Karbochem, but to have their own account.
Karbochem therefore has no knowledge of the SACC account with the Newcastle Municipality and is in no way responsible for the SACC municipal account, nor do we know whether any write offs or payment plans have been
entered between the municipality and SACC.”
ALSO READ: Giving birth in Afghanistan: inside MSF’s ‘baby factory’
SACC was approached for information regarding the standing of its municipal account but was unable to supply any details before going to press. It has however confirmed that once the board of directors has met to discuss the
issue, a press release will be issued.
In the interim, Brink said Karbochem would continue to concentrate on affording its remaining employees training
and ensuring continued job satisfaction.
For Brink, it was extremely important that the Newcastle community understood the closure of Karbochem’s rubber operations was a very difficult decision to have made.
“Our decision was not taken lightly and only made after thorough investigations showed that world economic factors reduced Karbochem’s international competitiveness to unsustainable levels. The well-being of our employees and the sustainability of our company remains our top priority and we will do everything in our power to avoid further job losses,” he concluded.
Remember to visit our Facebook, Twitter and Instagram pages.
Add us on WhatsApp today! 082 874 5550
You can also email our offices on Reveshni Douglas at reveshni@caxton.co.za or newsun@caxton.co.za Bruce Douglas at Newed2@caxton.co.za Tersia Gopi at newed@caxton.co.za Zianne Leibrandt at ncschools@caxton.co.za
