Alcohol ban sees third company pull back from planned investments

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Consol Glass has indefinitely suspended construction of a new R1.5bn glass manufacturing plant in Ekurhuleni, Gauteng, as the government’s ban on the sale of alcohol to combat the spread of the coronavirus shatters demand for glass products.

“The ongoing ban on alcohol sales and restrictions around on-premise consumption results in massive future demand issues and lost confidence in these markets recovering,” Consol chief executive Mike Arnold said.

“It is clearly a tremendous disappointment and a considerable loss to SA industrial capacity. It was a difficult decision to make, but unavoidable given the significant impact of the pandemic and the second ban on alcohol sales in SA,” said Arnold. It was expected to create 120 direct jobs, and approximately 2,600 additional employment opportunities across the value chain, from waste pickers to truck drivers, machine operators, glass machine operators, fitters, electricians and additional senior managers.

 

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