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KBL retrenches Phikwe depot shut down

Kgalagadi Breweries Limited (KBL) is set to retrench 54 employees and shut down its Selibe Phikwe depot at the end of March.

In an interview with The Voice, KBL’s Corporate Communications Manager Mokoro Ketsitlile said their business was forced to come to this decision in the wake of unfavourable regulatory and trading conditions.

“The current water and electricity shortages have further exacerbated the situation leading to production stoppages and loss of capacity by operations to consistently produce and deliver our products to adequately meet demand. As a result we have to import products from South Africa.”

“The business has plans to redirect our services to Palapye depot, as you will appreciate, it was never our intention to close down any of our key operations. On the contrary, the opposite ought to prevail as we need to grow as a local manufacturing company in order to improve scale.”

He also mentioned that as business, they need to continually review their competitive position as well as their ability to produce and deliver value to shareholders and key stakeholders.

Should the current situation prevail or worsen, Ketsitlile said they will be forced to evaluate the options at hand in seeking to maintain business efficiency and ability to compete.

He also mentioned that KBL has announced its intentions to restructure some of its key operations for operational efficiency.

“As we have done in the past, the utmost will be done to see how many can be re-assigned elsewhere within operations, and unfortunately, those whom the business is unable to absorb will sadly face retrenchments,” said the Corporate Communications Manager.