Astral Foods, employer of 12 000, is at risk due to failing water infrastructure
It’s just falling apart. So, what do you do? You withdraw your CapEx plans… There’s a greater community at stake… I’ve asked for some projects to be scrapped…Chris Schutte, CEO - Astral Foods
JSE-listed chicken producer Astral Foods has made a plan that will allow the Lekwa municipality to supply it with the water it needs to continue operating.
However, the agreement is costly and offers a temporary solution only.
Astral Foods has so far lost R85 million due to a lack of water caused by deteriorating infrastructure.
The municipality seems to be ignoring a court order compelling it to provide a minimum supply of water and a plan to fix its water infrastructure.
Astral Foods will assist the municipality by giving it R10 million worth of equipment and labour.
...[I am] flabbergasted that government structures are fixated with the concepts of a fourth industrial revolution, and now bullet trains and megacities, while they are unable to provide basic services...Chris Schutte, CEO - Astral Foods
Astral Foods employs about 12 000 people.
Listen to the interview in the audio below (and scroll down for more quotes from it).
… [Astral Foods now must] address basic service delivery through the courts… We instituted this action a while ago. We were asked by the Presidency to keep it on hold… We waited and waited… I have to re-activate [the legal procedure] …Chris Schutte, CEO - Astral Foods
… The basic things put me R5 per kilogram behind my competitors…Chris Schutte, CEO - Astral Foods
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