By Lehlohonolo Lehana.
Tiger Brands will extend until next May the operations of its fruit canning factory in the Cape Winelands as it considers purchase offers for the business, throwing a lifeline to as many as 4,000 workers and dozens of farmers in the area.
The decision, announced on Tuesday, comes more than a month after Tiger Brands, a R27bn food manufacturing giant, said it had stopped looking for a buyer for the business and talks with labour about shutting it were due to end in August.
It said the decision to keep operations going until next May was taken after a compact was agreed on with labour, employees of Langeberg & Ashton Foods, and the Canning Fruit Producers Association to facilitate the talks between itself and potential buyers. It did not name the potential buyers.
The Western Cape government has welcomed the extension of operations at Tiger Brands’ Langeberg & Ashton Foods (L&AF) plant.
According to the provincial government, the extension of operations allows for a possible transaction that may result in a long-term, sustainable solution for its deciduous fruit processing business.
“The flexibility, open-mindedness and good faith shown by all parties in reaching this compact will allow for the rigorous exploration of any new proposals in respect of the company’s deciduous fruit processing operations, “said Tiger Brands CEO, Noel Doyle.
In addition, Doyle said this move would help secure jobs for 250 permanent employees and 4 300 seasonal workers directly employed by L&AF for a further season.
Tiger Brands first revealed its intentions in 2020 to sell the canned fruit business – which serves export markets beyond Africa and no longer offered value – as part of its strategic plan to optimise its operations and better position the business for future growth.
The Western Cape government and the provincial Agriculture MEC, Ivan Meyer, met with Agri-Western Cape representatives, producers and the Canning Fruit Producers Association.
“We agreed that our priority was to protect the rural economy and jobs in the Langeberg and Ashton areas. Therefore, the announcement that the factory will be kept open for another season is good news, as it allows for more time to secure a suitable investor,” said Meyer.
Meyer said parties should focus their energies on ensuring the long-term sustainability of the factory and jobs now that the company and its key partners have reached an agreement.
The MEC has vowed to continue to support the industry in its endeavour to identify an investor who shares the vision of building a vibrant agro-processing sector in the province.
Provincial Finance and Economic Opportunities MEC, Mireille Wenger, said: “I am ecstatic that Tiger Brands will extend operations at Langeberg & Ashton Foods for another season. This is reason to celebrate, especially for the thousands of Western Cape residents employed through their operations.
“This announcement demonstrates the power of partnership and collaboration, and I thank all stakeholders for their efforts to find a solution in the best interests of all involved.”