JOHANNESBURG - Ongoing water outages at Libstar’s Dickon Hall Foods facility have brought operations to a halt.
Production has shifted to Montagu in the Western Cape as part of a broader push to centralise operations and reduce risk.
Municipal failures at the Dickon Hall plant forced the company to truck in water, slashing profits by R17-million.
Libstar says the move will streamline costs and boost efficiency,
But the shift triggered labour disruptions and production setbacks, weighing on output.
Meanwhile, weaker contract manufacturing demand and rising fuel costs piled on more pressure.
Libstar expects the new mega sauce hub in Montagu will ultimately strengthen its operating model and better position the business.