Weala, Margibi County — Jeety Rubber Liberia Limited Corporation has purchased a 100% stake in Salala Rubber Corporation (SRC), taking over the ownership of the company from its previous owner, Socfinaf S.A.
Located in Weala, Margibi County, Jeety LLC is a subsidiary of Jeety Conglomerate.
A statement issued by Socfinaf S.A in Luxembourg on August 27, 2024, disclosed that the purchase of SRC by Jeety Rubber was concluded on August 26, 2024.
It indicated that all-natural rubber harvested at SRC would no longer be processed within the Socfin Group or sold by its trading arm, Sogescol. It disclosed 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. However, the company 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 lumps) 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, concessionaire, moves Jeety Rubber from the category of processor into the category of a processor to 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."
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When contacted for comments, Jeety Rubber LLC Chief Executive Office, Upjit Singh Sachdeva, vowed to address the Liberian people and public in general to provide relevant details regarding his purchase of SRC.
Salala Rubber Corporation is Liberia's fourth-largest rubber producing and processing company. It produces semi-processed rubber used in the manufacture of tires. The company was formed in July 2007 through the merger of a stand-alone rubber processing factory (Weala Rubber Company) and a stand-alone rubber plantation (formerly Salala Rubber Corporation).
With the help of a US$10 million loan from the World Bank's International Finance Corporation, the company's former owner, the Belgian multinational Socfin, expanded its operations.
In July this year, the former management of SRC Socfin announced the indefinite closure of its operations following a violent protest.
Over 900 Liberians were out of jobs following the incident. But the latest purchase of SRC by Jeety Rubber LLC to purchase SRC has secured the jobs for them.
There were concerns that the employees and their respective family members would experience harsh economic constraints following the shutting down of the company's operations.
But with the intervention made by Jeety Rubber LLC, the wellbeing of the employees and their respective family members are guaranteed. Economic activities that were reported to be at a standstill are now booming in Weala, Margibi County following the purchase of SRC by Jeety Rubber LLC.
