–A lifeline for 900 jobs and a boost to Liberia’s Rubber Industry
IPNEWS: 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 Socfinaf 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.
