BETA Holdings (BETA) says it is facing operational challenges due to the current macroeconomic and liquidity challenges bedeviling the economy.
In an update on current operations in September, the management of the diversified producer of construction inputs revealed that some workers have gone on strike due to a salary backlog. Reads the statement:
Management acknowledges the operational challenges that the organisation has faced over the last few months. The current macroeconomic and liquidity challenges have not spared the company.
These challenges come at a time when the organisation is, however, in the process of increasing its capacity to address the underlying supply challenges it has faced over the last few years, especially at BETA BRICKS.
This has seen the GROUP installing a new clay brick ST 50 plant which is now operational at Mount Hampden.
This new plant complements the two existing factories already in place and will see production increase by 50% and has thus pushed the weekly production capacity to around 4.5 million green bricks.
A new ST 90 plant is also being installed at Melfort and is now 85% complete with all components now in situ and only electrical works are outstanding.
The target date for commissioning this brand-new factory with an annual production capacity of up to 180 million green bricks per year is the end of November 2023.
The net effect of these investments is to ensure that BETA pivots back to its leadership position in the infrastructural inputs supply sector now and into the future.
The challenges currently being faced by the Group, coupled with the diversion of resources to fund the expansion program outlined above have resulted in a delay in payments to some key stakeholders including staff currently employed at Mount Hampden as well as deliveries to our esteemed customers.
The current challenges faced by the organization are unprecedented and have understandably caused some anxiety among the employees.
The Management team has regularly been updating the employees through the Workers Council Committee on the challenges and strategies being pursued to address the situation. Other key stakeholders like suppliers and customers have also been kept fully updated.
Management has sourced raw materials to enable the kickstarting of a sustainable production process which should see capacity improving at the Mount Hampden factories whilst works are completed at the new Melfort plant.
Management is fully confident that as the production levels improve, so will the cash inflows that will address all the legacy creditors, backlogged deliveries, and staff remuneration.
It is against this background that BETA Management wishes to inform its stakeholders that efforts are being made to resolve the current impasse with the employees at Mt Hampden who have taken industrial action at the factories citing the backlog on wages.
All efforts are being made to ensure production is resumed speedily to ensure that the benefits of the recent expansions in capacity are realised for the benefit of all stakeholders.
Management has been, and remains committed, to ensuring that normalcy returns to our operations.
Together with the investments undertaken over the last 18 months, the Group is well poised to play its leadership role through an increased supply of products in the infrastructure sector.