MZUZU-(MaraviPost)-Castel Malawi officials have confirmed that the privately owned French beverages company is to close its production factory in Mzuzu, threatening many job cuts
The development comes after Malawi Bureau of Standards have been removing Sobo squash from shops because the company uses tertrazine, a deadly chemical used to colour drinks.
The ban of tertrazine in sobo squash drinks has forced the beverage company to halt production of the drink.
The managing director for Castel Malawi told Zodiak radio that there is a drop of sales of Sobo squash by 40 per cent since 2012, saying this has pushed the cost of production up.
“The factory is now being relocated to Blanyre,” he said.
He said the factory has only five days of production in a month, saying the losses are huge.