Angola: Cuanza Norte Government Seeks to Avoid Eka Brewery Shut Down

Ndalatando — The provincial governor of the northern Cuanza Norte, Adriano Mendes de Carvalho, on Wednesday requested a moratorium from the EKA brewery's managers for consultation with central supervisory bodies ahead of the intended shutdown of the company.

The brewery located in Dondo, Cambambe municipality, announced on May 5 the suspension of its production from June, due to the increase in operating costs.

However, the governor asked the company, during a meeting with representatives of the management and workers, for a moratorium, taking into account the economic and social impact of the shutdown for Cuanza Norte province.

The governor explained that the local government is against the closure of the brewery because of the implications this action will bring to the lives of the residents.

The local government will thereby request the intervention of the Ministries of Trade and Industry and the Economy, as well as other central government structures, for solutions to avoid the stoppage, so as to safeguard jobs and the economic and financial interests of the factory, the official said.

At the end of the meeting, EKA's general manager, Marc Mayer, told the press that the halt of the brewery's production could put 160 people jobless out of the total 197 currently working.

Inaugurated in 1972, EKA benefited in 2008 from an investment estimated at 30 million dollars, which allowed the modernization of the brewery through the installation of a second filling line, with a modern and automated system.

In the same year, the management of that brewery venture became the Castel Angola Group, through a concession contract, thus holding all the main national brands.

Currently, the group manages 12 beverage factories in Angola and produces around 16 brands, namely Cuca, Nocal, EKA, N'gola, Doppel, Beaufort, 33" Export, Booster, XXL, Coca-Cola, Fanta, Sprite, Schweppes, Youki, Top, Vimto, with a variety of formats.

As a result of a 40 percent drop in production levels and the stoppage of its first filling line, the company has reduced its production capacity from 55,000 liters of beer per hour to the current 27, 000 liters/hour.

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