Chinese Tiles Company Set To Lose US$1.2 Million
A Chinese tiles manufacturing company operating in Norton, YI Feng Tiles, is likely to lose about US$1.2 million due to power cuts. Loadshedding has reportedly affected the company’s production capacity and quality of products the company is producing lately.
Speaking to the Daily News, YI Feng Tiles vice managing director, William Gung, said:
Power cuts are affecting our production and we should be producing up to 30 000 square metres daily. Our machines are automatic, which makes the process even more difficult because power cuts mean everything stops.
Our machines need about 15 days to heat up to 1 200 degrees so once it stops for some time we need another 15 days to get back to the high temperature.
For the ceramic business, machines can’t just stop. Now, we have so many defective products that we will have to sell at half the price, losing over US$1,2 million.
A lot of electric motors are already damaged and some have to be replaced while others constantly need an electrician and that is an extra cost.
YI Feng Tiles invested up to US$120 million in the business and started operating in Norton in May this year. It is currently exporting about 60% of its products whilst the rest is consumed locally.
Reduced production may also result in several people losing their jobs.
More: Daily News