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Fin24 reports that dairy group Clover is closing down SA’s largest cheese factory in Lichtenburg, North West, due to "ongoing poor service delivery" by the local municipality.
After large losses due to long-standing water and electricity disruptions, Clover is moving its Lichtenburg production activities to Queensburgh in Durban, where the company already has a plant. While Durban's eThekwini municipality "has proven to be supportive", Clover says it has for years tried to engage the Ditsobotla Local Municipality on service delivery, but without success. Disruptions to electricity and water supplies have hit its cheese production hard, especially in the treatment and pasteurisation of milk. "This has negatively impacted production which requires a continuous process and it is no longer feasible for the business to operate in Lichtenburg," said Clover. Netwerk24 reported that the company has also struggled to use the road leading to the factory, which due to large potholes was almost impassable. The company’s move will result in 330 of its people losing their jobs, according to Netwerk24. The publication also reported that the move will cost Clover R1.5 billion.
- Read the full original of the report in the above regard by Penelope Mashego at Fin24
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