Having locked the doors of its Mzuzu factory, Castel Malawi Limited has said all technical staff will be relocated to Lilongwe and Blantyre.
Castel recently announced the closure of its Mzuzu factory, arguing that sales of Coca-cola have been dwindling since 2012. This raised fears of job loss among the Mzuzu plant staff.
The Mzuzu staff can now afford a sigh of relief following the good news.
Castel plans to transfer its bottling line to Blantyre by the end of the year. The move is meant to cut costs in the wake of financial hardships.
“Unfortunately, the sales volumes and financial situation of Castel Malawi today do not allow the operation of three factories in the country,” reads the statement from Castel’s managing director Gilles Leclerc.
A few months ago, one of the company’s products Sobo squash was withdrawn from the market after Malawi Bureau of Standards declared it harmful to health. This also had a negative financial effect on Castel.
The drinks producer, is now employing all reliable tactics in a bid to regain its financial muscle. This justifies its actions.