Job losses at SANS Fibres
South Africa-based SANS Fibres (Pty) Limited, a subsidiary of chemicals company AECI, is to close its nylon high decitex industrial (HDI), polyester HDI and polyester light decitex industrial (LDI) yarn manufacturing businesses by the end of this year.
The company states that overinvestment in polyester HDI and LDI yarn plants, mainly in the Far East, has resulted in surplus capacity and very low prices. Furthermore, it says that the significantly lower cost base of manufacturers in the Far East has damaged profits. SANS claims that it has been unable to recover increasing raw material costs, in full, from customers and says that the strength of the rand has also been a problem.
Approximately 850 jobs will be affected.
The nylon LDI and the PET plants will continue to operate normally whilst discussions with potential partners or purchasers for these businesses are pursued.
