Tobacco giant selling premises
2007-10-11
MOST of the Paarl factory of the British American Tobacco Company has already been sold in the build-up to the final closure in March next year.
By March the retrenchments and reallocation of the 245 employees at BAT in Paarl will have been concluded.
Production will stop and the 60-year-old “Rembrandt cigarette factory” as it used to be known, will finally close its doors.
The company’s technical manager, Willem Naudé, this week confirmed the sale of the company’s premises east of Textile Street to a Paarl developer to be used for small business units.
The factory premises east of the Berg River, off Distillery Street, have also been sold.
The new owner has indicated that it will be used for the manufacture of high-tech equipment.
The main office block east of Berg River Street as well as premises west of Textile Street, are still on the market. It is zoned for light industry or business and not residential.
Negotiations with the members of staff who have been affected, were done sympathetically, Naudé said.
They were invited to select representatives from amongst themselves to participate on their behalf in the consultation process with the company.
As many of the Paarl factory employees as possible are being transferred to fill available vacancies at the Heidelberg factory.
The company allocated funds to empower employees who were being retrenched, for their future careers.
They were not only sent on courses to enlighten them on the process and possible other careers, but the company also saw to the emotional needs of employees by making funds available for therapy.
“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, said Hendrik Hattingh, operations chief in Paarl, when the shock news first hit home in 2006.
“The machinery will be transferred to other BAT factories, while non-tobacco specific machinery will be sold.
“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 currently 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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