Libstar has warned that while load-shedding has mostly come to a halt, municipal electricity interruptions are putting its Johannesburg fermentation plant at risk.
As the country continues to battle energy challenges, businesses such as Libstar are being forced to invest in alternative power and water solutions to ensure operations stay on track.
In its latest annual report published last week, the company said electricity supply disruptions continue to pose a serious challenge, especially for its fermentation operations.
“Though load-shedding has now largely stopped, municipal electricity interruptions in Alrode increase the risk of fermentation plant breakdowns at our Johannesburg facility,” Libstar said.
To manage the risk, Libstar said it has been upgrading systems to ensure business continuity. The company said it completed a major electricity and cooling infrastructure upgrade at its Western Cape facility in June. These upgrades aim to improve fermentation capacity and production stability while reducing overall plant water usage by 19% and cooling electricity usage by 36%.
“Electricity is one of the largest cost drivers in our manufacturing operations,” the group said, adding that live metering systems have been rolled out across all its sites to better understand and manage electricity use. The data collected is being used to plan solar energy installations and optimise electricity tariffs.
Libstar has already installed solar systems at five of its 26 manufacturing sites, though further rollouts have been delayed due to complications related to lease agreements and structural site issues.
To safeguard production, the company has also ensured that each site is equipped with generators and at least two days’ supply of stored water. It is also exploring the feasibility of sinking boreholes in Gauteng, where water supply interruptions pose an additional risk.
Libstar’s concerns come amid broader challenges in the electricity sector as the country continues to face challenges of ageing infrastructure, rising costs, and financial troubles at the state-owned power utility.
Eskom is also in dispute with the City of Johannesburg over unpaid electricity bills. The city reportedly owed Eskom R4.9bn since November last year. Eskom warned that the unpaid debt was unsustainable and could lead to further power cuts in the city.
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