Tiger Brands has taken the decision to consider restructuring Langeberg & Ashton Foods, a division of Tiger Consumer Brands Ltd, based in Ashton, in line with the new enterprise strategy. This entails the consolidation of the Ashton manufacturing site from the existing two sites, West and East to one site, East, to reduce manufacturing costs, in order to become globally competitive.
The key motivation for the project is to lower the cost base of the fruit export business. International market pricing has declined over the past two years and this, coupled with a volatile ZAR and a relatively high manufacturing inflation rate, has resulted in the business generating losses. The business exited loss making markets which in turn reduced the fruit intake. The reduced fruit intake resulted in both factories operating at low capacities which resulted in a higher cost per unit produced.
It should be emphasised that no final decision has as yet been taken in this regard, nor will any final decision be made in the absence of full and proper consultations with our stakeholders. – Press release