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Alcohol sales ban costs Consol R8m a day in furnace energy

But shutting down the furnaces could be even more costly.
Government needs to say when the alcohol ban will be lifted to enable the industry to plan and make important decisions. Image: Shutterstock

The alcohol sales ban is costing glassmaker Consol R8 million a day in energy costs to keep its furnaces warm and running, despite the company not producing effectively or supplying its products to market.

During a Gauteng Growth and Development Agency (GGDA) webinar on Tuesday, titled ‘Resuscitating Gauteng’s manufacturing as a catalyst for growth’, Consol human resources and corporate affairs senior executive Thami Mkhuzangwe said it’s necessary for Consol to keep its furnaces warm because it will take the company 18 to 24 months to get those furnaces back if it takes “the drastic decision of draining and closing” them.

Read: SAB pulls the plug on its R2.5bn investment for 2020

He said glass accounts for about 85% of the alcohol industry’s packaging and the alcohol sales ban has led to a drastic reduction in sales and thus a need for it to scale down production significantly.

Balance
Mkhuzangwe said the industry fully appreciates and understands the reasons that led to the suspension of alcohol sales – to reduce trauma and the use of hospitals – and believes it is the right thing to do.

However, he stressed that this needs to be balanced to ensure the economy does not suffer and that the glass manufacturing industry, which has invested billions, does not fail.

If the industry is allowed to fail, it will lead to around R20 billion in deindustrialisation from South Africa, he said.

Mkhuzangwe called on the government and decision makers for clarity and a firm commitment on when the ban will be lifted, to enable the industry to plan and make important decisions.

He said there can be a balance between saving lives and measures that can be put in place to ensure the responsible sale, distribution and consumption of alcohol “without it necessarily destroying the industries and the livelihoods of the people associated with it”.

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Hu?

And here we have CR and his troop thinking you just buy bottles in a shop?

To try and avoid the embarrassment of their nincompoopery they will now be suborn about it.

Just like naughty school children.

ha ha! and even worse…the BELIEVE money grows on trees.

The shutdown could also not have come at a worst time for that deal between Nampak Glass and SABMiller.

Prediction engine : SA will become a large importer of glass packaging in the future.

The ramifications of the mighty cANCer Corona virus committee. Such clever and brilliant rocket scientists.

Billionare cyril doesn’t care.

Cyril conned the nation into believing he would breath new stimulus into South Africa after 9 years of ANC decay, theft, thievery, and trickery under the Zuma’s (President, Nokasana and son, Edward and extended)

His “New Dawn” speech was just him enjoying hearing his lie to the nation

Dear Government, it is the shebeens that fill the hospital beds – shut them down, there is no justification to stop wine sales in shops and restaurants.

More workers are affected in the restaurant industry than shebeen owners.

The big problem is a complete lack of political consequences for moronic and corrupt actions. Even those workers who do lose their jobs, will still vote for the regime. They, the voters who keep on voting in favour of their own misery, are the biggest problem.

Agreed. And one of the reasons for the educated decision to continue voting for the cANCer party iS the 25% pass rate needed to get your worthless school leaving certificate.

It is now clear the ANC is implementing a scorched earth policy on industry to achieve their glorious socialist revolution.

All I’m saying is, this will not be the last disinvestment in Company ZA. I think history is going to repeat itself and perhaps even more so, than what happened pre ’94 when when the entire world turned their back on the Nationalist government with disinvestment.

Africa marches to a slower beat, this is as good as it gets.

This company needs to switch its brain “ON’ and put the electracl swich on the machine to “OFF” mode. C’mon now – who needs a manual for that?

End of comments.

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