ADNews-Monrovia: Jeety Rubber LLC, a subsidiary of Jeety Conglomerate, has purchased a 100% stake in Salala Rubber Corporation (SRC) and taken over the corporation from its previous Owner, Socfinaf S.A . The purchase of SRC was concluded effective August 26, 2024, according to the statement issued by Soctinaf S.A in Luxembourg on 27, August 2024.
Socfinaf S. A’s announcement further indicated that henceforth, all-natural rubber harvested at SRC would no longer be processed within the Socfin Group or sold by its trading arm, Sogescol. The announcement also stated that as per the wish of the new owner, Jeety Rubber LLC, Socfin Group’s consulting arm, Socfinco shall remain as the managing agent of SRC for one year in order to ensure the appropriate transfer of technological know-how.
According to Socfinaf S.A, Jeety Rubber LLC recognizes the importance of matters relating to land compensation and access to sacred sites to the local communities and has pledged its support to Socfinaf which has indicated that despite the sale of SRC to Jeety Rubber LLC, it remains fully committed to SRC’s 2023 Action Plan regarding land compensation issues and access to sacred sites, based on the findings of the Earthworm Foundation on-site investigation.
Jeety Rubber LLC, a subsidiary of the Jeety Conglomerate based in Weala, Margibi County, buys and processes rubber into finished and semi-finished products, TSR 10, for shipment but it has struggled to buy enough latex cup lumps to operate its factory at full capacity. It can be recalled that Jeety Rubber LLC reported that it was not getting enough latex (cup lumps) to run the factory at optimum capacity. The entity reported that it requires a minimum of 225 Tons of latex (cup lump) daily and 6,750 monthly to run the factory 24 hours, and further that it needed to stack a minimum of two months of cup lumps/latex supply in the factory to operate the factory at optimum
Capacity
Industry observers believe that Jeety Rubber LLC’s acquisition of SRC is strategic and would go a long way in addressing the raw material needs of the factory. This purchase of SRC, a concessionaire, moves Jeety Rubber from the category of processor into the category of a processor and a concessionaire, thereby giving it immense leverage to achieve its goal of producing Made in Liberia rubbers products, including latex gloves and tires in the short and long term.
When reached for comments, Jeety Rubber LLC Chief Executive Office, Upjit Singh Sachdeva, stated that at the appropriate time, he will address the Liberian public and provide relevant details regarding the purchase of SRC.
Below is a full statement from SRC
Socfinaf announces the divestment of SRC in Liberia
Luxembourg, 27 August 2024
As mentioned in the notes to its 2023 Annual Report, published on 30 April 2024, Socfinaf S.A. (ISIN: LU0056569402) had taken the strategic decision to divest Salala Rubber Corporation (SRC) in Liberia following several years of sustained losses.
The due-diligence and discussions with the interested party, Jeety Rubber LLC, are now concluded, and the sale of SRC is effective since Monday 26 August 2024.
From this date forward, the natural rubber harvested at SRC will no longer be processed within Socfin Group nor sold via its trading arm, Sogescol.
However, as per the wish of the new shareholder, Socfin Group’s consulting arm, Socfinco, shall remain as managing agent of SRC for a period of one year in order to ensure the appropriate transfer of technical know-how.
Furthermore, despite this divestment, Socfin Group shall remain fully committed to implementing SRC’s 2023 Action Plan based on the findings of the Earthworm Foundation’s on-site investigation. This includes resolving land compensation issues and access to sacred sites. The new shareholder recognizes the importance of the Action Plan for the local communities and is supportive of its implementation.
Notwithstanding the sale of SRC, the Socfin Group will continue to be an engaged investor in Liberia through its historic operation, the Liberian Agricultural Company (LAC).
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