Independent Online

Tuesday, August 9, 2022

Like us on FacebookFollow us on TwitterView weather by locationView market indicators

Listed cannabis product group signs agreement with CSIR on further development

An unnamed worker waters cannabis plants on Steve Dillon's farm in Humboldt County, California, U.S. August 28, 2016. REUTERS/Rory Carroll/File Photo

An unnamed worker waters cannabis plants on Steve Dillon's farm in Humboldt County, California, U.S. August 28, 2016. REUTERS/Rory Carroll/File Photo

Published Apr 1, 2022

Share

Cannabis holdings group Labat Africa has signed a memorandum of understanding with the Council for Scientific and Industrial Research (CSIR) that will see the parties produce and process cannabis and hemp.

Labat Chief Executive Brian van Rooyen yesterday said the agreement would solidify collaboration and cooperation between CSIR and the company across the value chain of cannabis and hemp production for industries ranging from pharmaceuticals to textiles to energy.

Story continues below Advertisement

“It is really about the CSIR wanting to commercialise medicinal cannabis and getting some traction in the industrial side of hemp production and processing. The partnership is collaborative and serves to benefit both parties,” he said.

The agreement makes provision for the use, upgrade and expansion of the CSIR Coega hemp processing facility, the acceleration of hemp biomass and waste into energy applications in KwaZulu-Natal, and the beneficiation of bio-composites and bio-polymers that will be applied in the automotive, textile, construction and packaging industries.

“The conversion of natural fibre to bio-polymer is where the value-add is. We have a number of confirmed private sector and state-owned enterprises as clients. One of these is the largest textile manufacturing company in South Africa who will use the material in their production rollout,” said van Rooyen.

Story continues below Advertisement

“Right now, no large-scale industrial hemp processing operation exists in Africa,” he said.

The collaboration would focus on producing some of the fast-moving consumer goods among the 25 000 established hemp-derived products, all of which could create as many as 20 000 jobs in South Africa alone, he said.

“With all the acquisitions, and a focus on increasing revenues, building efficiencies and creating a sustainability model for all subsidiaries, the recently signed agreements over the last two years ensures that we are on a profitable and value-creating path,” said van Rooyen.

Story continues below Advertisement

[email protected]

BUSINESS REPORT ONLINE

Related Topics:

Share