An end of an era has come to pass. After 35 years, Karbochem braces to close certain of its departments.

Chairman of the Karbochem board of directors, Abraham Brink, claims it was not an easy decision to make. While Brink was unable to elaborate on the decision, he said it was a combination of external factors.

“Circumstances beyond the control of the company have rendered the production of synthetic rubbers by Karbochem unsustainable. The management is currently engaged in the process of extricating itself from the markets for these products, both locally and internationally.”

Due to this, Brink says the removing itself from this market unfortunately has adverse effects on Newcastle.

“This process necessarily includes the shutdown of the manufacturing facilities in Sasolburg and Newcastle, which in turn will result in job losses, not only in the production units themselves but all departments of the company.”

Brink said the company is currently engaged in the required consultation process with all employees and employee representatives. “This process is ongoing and as such the outcome is not yet determined. Thus, the overall impact and the final conclusion of this process including the total number of employees affected has not yet been determined.”

Brink could not confirm when the closure is set to take place. With a number of people facing loss of employment, a bleak future is now awaiting scores of families.

The Newcastillian asked the community what they thought about the situation. This is what they had to say:

Henno Geyser

“I think it is going to affect Newcastle negatively. As other businesses will be affected in the long run. A lot of people work for Karbochem. They will now leave town to seek employment. This means they will not be supporting local businesses anymore.”

Helziphi Mazibuko

“I believe it is a bad thing, as people will be losing their employment. A lot of people will also now leave Newcastle to seek employment elsewhere.”

We must however remember that industry changes are a part of the world we live in. Newcastle will bounce back as there is a huge amount of positive investment from not only the corporate sector but various other sectors as well. Stand strong Newcastillians and focus on creating opportunity in the wake of this challenge.

Share your thoughts with us in the comments section below.