LEADING brick manufacturing outfit, Beta Holding, has revealed that it is facing a liquidity crisis that has forced management to ground operations.
The firm said macroeconomic problems confronting the economy had not spared it.In a statement yesterday, Beta Bricks said the problems had resulted in a backlog of wages and salaries, leading to an impasse with employees.
“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,” the statement said.
“The challenges currently being faced by the group, coupled with the diversion of resources to fund the expansion programme 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 company said the challenges were unprecedented, leading to anxiety among the employees.
“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 in wages,” the company said.
“All efforts are being made to ensure production is resumed speedily to ensure that the benefits of the recent expansion in capacity are realised for the benefit of all stakeholders.”
The group also announced that it had installed a new clay brick ST50 plant which is now operational at Mount Hampden and a new ST90 plant in Melfort.
“A new ST90 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.”
Beta also said management had sourced raw materials to kick-start a sustainable production process which would see improved capacity at its Mount Hampden factories.
“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,” the company said.
Source Newsday
