The Consol Glass company says the ongoing ban on alcohol sales has impacted negatively on revenue and is threatening jobs.
Management says with the alcohol industry accounting for more than 80% of glass packaging sales, the glass manufacturing industry and its suppliers are extremely vulnerable to any restrictions on the sale and distribution of alcohol.
The company has called on government to consider the devastating impact if the ban continues.
Consol’s management says it fully supports the national government’s efforts to save people’s lives from the deadly COVID-19 but adds the ongoing ban on the sale of alcohol is having a devastating impact on the company.
Consol Glass Senior Executive, Stephen Van Eck, says they lost R1.5 billion in revenue during the previous ban on the sale of alcohol.
Van Eck says they were also forced to freeze several positions and stop selling capital projects. He says the situation will be more difficult if the alcohol ban goes beyond the next month.
“It costs us R250 million every month, more lock downs, more alcohol bans, we cannot survive over a lengthy period of time.”
Minister of Finance in the Western Cape, David Maynier, visited the Consol Glass company in Bellville following the concerns.
Maynier says he has made submissions to the national government to ease the restrictions on the sale of alcohol.
“The alcohol ban and the restrictions in general have hammered the tourism and hospitality sector, but also all the companies on the value chain. What we’ve seen today is that Consol Glass has lost in the first alcohol ban, R400 million. There are 550 jobs at Consol Glass here and the bottom line is if the restrictions are not lifted, this company is not sustainable, and there is a risk, of course, of us losing 550 jobs.”
The company has called on government to review the ban on the sale of alcohol.