Sasol warns share holders on JSE about production loss due to Solidarity strike
18 October 2018
The petrochemical giant Sasol warned shareholders in a statement on the Stock Exchange News Service (Sens) that its fuel production would probably be between 200 000 and 300 000 tonnes lower this year. In the statement, Sasol ascribes the loss to the longer time it took to complete the maintenance project (shutdown) and to technical problems encountered.
“The delay in the maintenance project is a direct consequence of Solidarity’s strike at Sasol. A statement such as this one sends ripples through the JSE. It creates major uncertainty amongst shareholders. A mandate by Solidarity members yesterday at three mass meetings, that Solidarity should increase the pressure on Sasol, will increase the uncertainty even further,” said Solidarity Chief Executive Dr Dirk Hermann.
Solidarity began the strike on 6 September, in the middle of the shutdown. The withdrawal of the Solidarity members’ skills during this shutdown led to major disruptions at the Secunda plant. According to Solidarity, they chose this specific time for the strike precisely because they knew that their members’ skills were needed for the maintenance project.
Sens statements are used by the Johannesburg Stock Exchange (JSE) to provide information that can have direct impact on movements in the market.