Nampak Unit Considers Retrenchments, Financial Mail Says
Nampak Wiegand Glass, a joint venture between Nampak Ltd. (NPK) and Wiegand-Glas, is considering firing workers as South African wine exporters shift from glass bottles to bulk exports, Financial Mail reported without saying where it got the information.
Nampak Wiegand Glass, based in Johannesburg, has seen wine bottle prices increase below 5 percent for the past two years. The company hasn’t fully recovered costs, which are driven by electricity, transport, gas prices and labor, Financial Mail cited Managing Director Stoney Steenkamp as saying. The proportion of South African wine exported in bulk format increased to 45.6 percent by June 2011 from 32 percent in 2005, Financial Mail reported, without saying where it got the information.
Wine producers are opting to export in bulk to save costs and offset the impact of a strong rand, Financial Mail said, citing FirstCape Managing Director Kobus van der Vyfer.
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