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Alcohol ban: Consol, hanging by a thread, burns through millions to stay alive
The glass is half empty.
Optimist
Consol Glass is burning through R8 million per day – hoping it can keep it up until the prohibition on the sale of alcohol is lifted.
It cannot stop its furnaces, so it must keep them going despite there being no orders for wine and beer bottles.
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The company has warned of imminent job cuts and added disinvestment if the third alcohol ban is not lifted very soon.
The first two alcohol bans resulted in losses of more than R1.5 billion to the glass packaging industry.
Consol has, in a desperate bid to save jobs in the short-term, reallocated R800 million meant for the upkeep of its furnaces towards surviving the alcohol ban by maintaining operations.
The Money Show’s Bruce Whitfield interviewed Mike Arnold, CEO at Consol Glass.
In the next couple of weeks, warehouses will be full… We are still producing… but our sales will [soon] ground to a halt.
Mike Arnold, CEO - Consol Glass
If there’s no certainty… We’re not going to rebuild those furnaces…
Mike Arnold, CEO - Consol Glass
The alcohol industry employs well over a million people…
Mike Arnold, CEO - Consol Glass
Listen to the interview in the audio below.
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