BAT to close in Paarl
2006-10-19
THE Paarl factory of the British American Tobacco Company is to close at the end of next year.
BAT South Africa’s Operations Director, Niel de Waal, confirmed that an in-principle decision had been taken to close the factory in December 2007. Negotiations with the 186 members of staff affected, are due to start soon.
“Our intention is to transfer as many of our Paarl factory employees as possible to fill available vacancies at our Heidelberg factory.
However, the exact numbers will only be determined through the consultation process.
“The proposed consolidation will lead to greater efficiency and optimisation of our operations environment and lead to a way of work that will ensure connectivity, better service delivery and efficiency.
“Affected employees have been invited to select representatives from amongst themselves to participate on their behalf in the consultation process with the company.
“BAT South Africa will follow a fair, transparent and inclusive process that will take in-to account the well-being of affected employees.
“Where applicable the machinery will be transferred to other BAT factories, while non-tobacco specific machinery will be sold. The future of the Paarl building will be determined at a later stage.
“The proposed consolidation of our Production and Operations will enable us to reduce our manufacturing costs, improve efficiency and optimise our resources which will enable us to be more globally competitive and attract additional export volumes. The decline in domestic cigarette volumes is also a contributing factor.
There are about 770 permanent employees at the Heidelberg factory.
Five years ago the Paarl factory, which opened in 1948, employed more than 350 people.
The head office of BAT South Africa will remain in Stellenbosch, but employees working in the Operations function will also be relocated to Heidelberg as part of the proposed consolidation of the manufacturing infrastructure.
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