Chief executive Richard Jacob said it was unfortunate that the company had to consider laying off some of its workforce, but Hulamin Extrusions suffered a first-half loss, which included a provision for restructuring costs.
“Sales volumes were lower following an equipment malfunction and the consequent disruption to production. We are making good progress in right-sizing the business to achieve a lower unit cost base; turning the losses around and releasing cash.
“We are taking action to improve profitability levels in the months ahead through cost reductions and actions to achieve higher sales volumes and prices. We estimate that around 180 employees in our Extrusion plant in Midrand and 200 employees in Pietermaritzburg will be affected by the right-sizing process,” Jacob said.
Hulamin’s expected job losses are still below those of reported by Tongaat Hulett when it announced in May that about 5000 workers were set to lose their jobs as the agriculture and property giant restructures its business.