The expansion of activities at the Langeberg & Ashton Foods (L&AF) facility owned by Tiger Brands has been welcomed by the Western Cape government.
This comes after Tiger Brands met with the impacted workers, organized labour, and other stakeholders and reached an agreement to permit the business to continue operating for a further season.
The extension of operations, according to the provincial administration, enables for a potential transaction that might lead to a long-term, sustainable solution for its business of processing deciduous fruit.
According to Noel Doyle, CEO of Tiger Brands, “the flexibility, open-mindedness, and good faith displayed by all parties in reaching this agreement will enable for the rigorous study of any new ideas in respect of the company’s deciduous fruit processing activities.”
Doyle added that by making this change, 250 permanent employees and 4,300 seasonal workers who are directly hired by L&AF would have their jobs secured for an additional season.
According to Moneyweb, Tiger Brands first announced its intentions to sell the canned fruit business in 2020 as part of its strategy objective to optimize its operations and better position the company for future growth.
This business serves export markets outside of Africa and no longer offers value.
The Canning Fruit Producers Association, producers, and representatives from Agri-Western Cape met with the Western Cape government and Ivan Meyer, the province’s MEC for Agriculture.
“We decided that safeguarding the rural economy and jobs in the Langeberg and Ashton areas should be our top concern.
As a result, the news that the factory will remain open for another season is welcome because it gives Meyer more time to find a suitable partner.
Meyer advised parties to concentrate their efforts on preserving the factory’s and the employment’s long-term viability now that the company and its important partners have come to an agreement.
The MEC has committed to keep assisting the sector in its search for a financier who shares the goal of creating a thriving agro-processing economy in the province.
Mireille Wenger, a provincial MEC for Finance and Economic Opportunities, exclaimed: “I am overjoyed that Tiger Brands will continue to operate at Langeberg & Ashton Foods for another season.
Particularly for the tens of thousands of Western Cape citizens who are now employed by their activities, this is cause for celebration.
“This news shows the strength of partnership and collaboration, and I appreciate all stakeholders for their efforts to find a solution in the best interests of all engaged,” said the official statement.