AECI expects to cut 640 jobs, the listed chemicals company said on Tuesday.
This was due to the expected closure of two of its plants in the Western Cape by March 2009.
”Regrettably, these contemplated closures are expected to result in 640 direct job losses,” the company said in a statement.
”The costs associated with this, as well as other closure costs, will be finalised once consultations have been concluded with all stakeholders, including employees, the trade union, customers and suppliers.”
Business had come under pressure due to technology improvements of new plants in the Far East, which are closer to main markets, AECI said.
Other considerations included cost increases in raw materials and utilities, and the lack of a reliable electricity supply. — Sapa