Business Report writes that Evowood, formerly known as Masonite and one of the biggest hardboard makers in the southern hemisphere, has been placed in voluntary liquidation.
Director Nkosinathi Nhlangulela advised on Tuesday that the Estcourt-based mill ceased operations earlier this month after having consulted staff. It had been the town's biggest employer. The closure resulted in the loss of 460 permanent jobs as well as temporary jobs. In February 2017, the company endured a protracted illegal strike, which led to lost production time and damage to the plant and also resulted in uncertainty among Evowood’s customers. Nhlangulela said this was compounded by the economic turbulence in the country that impacted heavily on the construction industry, which accounted for the bulk of the company’s business. He commented further that Evowood never really recovered from the substantial losses incurred during the strike and, despite having brought in international engineers to attempt to repair equipment that was old and regularly breaking down, it was unable to ensure continuity of supply. Nhlangulela advised that provisional liquidators would be appointed by the Master of the High Court in due course.
- Read the full original of Edward West’s report on the above at Business Report
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