The Liberian Investigator | August 31, 2024
Salala Rubber Corporation Sells Its Plantation to Jeety Ruber LLC
Weala, Margibi – The Liberian Investigator has confirmed from multiple sources that the Socfin Group, the parent company of the Salala Rubber Corporation (SRC) plantation in Margibi, has sold the plantation to Jeety Rubber LLC following weeks of violent protests that resulted in the vandalism of the company’s facilities.
Following the protest, which led to the burning of company property and death threats against the General and Plantation Managers, the Socfin Group made an immediate decision to shut down the company and lay off over 800 workers. About 300 of the laid-off workers, who were newly employed, received their end-of-service benefits in accordance with Liberian law.
Our sources disclosed that Firestone Liberia, along with a former shareholder of the Socfin Group, bid for the 4,400-hectare natural rubber plantation, but Jeety Rubber LLC won the bid.
In 2007, Agrifinal merged Weala’s factory with Salala’s plantation. The Socfin Group then acquired the Salala Rubber Corporation (SRC) and invested in expanding the plantation.
When contacted, the CEO of Jeety Rubber LLC, Upjit Singh Sachdeva, confirmed that it is “good news” but mentioned that he is working on the modalities with the government before making a full disclosure.
The Liberian Investigator has established that the Socfin Group is selling the SRC plantation without settling its social, environmental, cultural, financial, and economic debts to the affected communities.
SRC’s operations have faced serious criticism from Green Advocates and other international rights groups for reportedly causing significant harm to local communities, including land grabbing, environmental degradation, and human rights abuses.
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Indian businessman Upjit Singh Sachdeva CEO of Jeety Rubber LLC
Liberian Observer | 1 Sep 2024
Jeety Rubber LLC Takes Over Salala Rubber Corporation
By David A. Yates
---As Socfinaf Exits After Sustained Losses
Socfinaf S.A. (ISIN: LU0056569402) has officially completed the sale of its Liberian subsidiary, Salala Rubber Corporation (SRC), to Indian entrepreneur Upjit Singh, Chief Executive Officer of Jeety Rubber LLC. The transaction, effective August 26, 2024, concludes a series of extensive due diligence and negotiations and aligns with the strategic objectives outlined in Socfinaf’s 2023 Annual Report.
Under the new ownership, SRC’s natural rubber will no longer be processed by the Socfin Group or marketed through its trading arm, Sogescol. Instead, Jeety Rubber LLC will take over the operational management of SRC.
However, Socfinco, the consulting arm of the Socfin Group, will continue to serve as SRC’s managing agent for one year. This arrangement is intended to facilitate the smooth transfer of technical expertise and ensure continuity in operations.
Socfinaf has reaffirmed its commitment to the SRC 2023 Action Plan, which was developed in response to the Earthworm Foundation’s on-site investigation. This plan addresses key issues such as land compensation and community access to sacred sites, reflecting Socfinaf’s dedication to social responsibility and community engagement.
Jeety Rubber LLC has endorsed the Action Plan and pledged to support its full implementation, recognizing its critical importance to local communities.
Despite the divestment of SRC, Socfin Group will maintain a significant presence in Liberia through its long-standing operation, the Liberian Agricultural Company (LAC).
This ongoing investment underscores Socfin’s continued commitment to the country’s agricultural sector and economic development.
The sale of SRC represents a new chapter under Jeety Rubber LLC’s leadership, with a focus on advancing the company’s operations while Socfinaf remains dedicated to fulfilling its obligations to the affected communities.
By David A. Yates
---As Socfinaf Exits After Sustained Losses
Socfinaf S.A. (ISIN: LU0056569402) has officially completed the sale of its Liberian subsidiary, Salala Rubber Corporation (SRC), to Indian entrepreneur Upjit Singh, Chief Executive Officer of Jeety Rubber LLC. The transaction, effective August 26, 2024, concludes a series of extensive due diligence and negotiations and aligns with the strategic objectives outlined in Socfinaf’s 2023 Annual Report.
Under the new ownership, SRC’s natural rubber will no longer be processed by the Socfin Group or marketed through its trading arm, Sogescol. Instead, Jeety Rubber LLC will take over the operational management of SRC.
However, Socfinco, the consulting arm of the Socfin Group, will continue to serve as SRC’s managing agent for one year. This arrangement is intended to facilitate the smooth transfer of technical expertise and ensure continuity in operations.
Socfinaf has reaffirmed its commitment to the SRC 2023 Action Plan, which was developed in response to the Earthworm Foundation’s on-site investigation. This plan addresses key issues such as land compensation and community access to sacred sites, reflecting Socfinaf’s dedication to social responsibility and community engagement.
Jeety Rubber LLC has endorsed the Action Plan and pledged to support its full implementation, recognizing its critical importance to local communities.
Despite the divestment of SRC, Socfin Group will maintain a significant presence in Liberia through its long-standing operation, the Liberian Agricultural Company (LAC).
This ongoing investment underscores Socfin’s continued commitment to the country’s agricultural sector and economic development.
The sale of SRC represents a new chapter under Jeety Rubber LLC’s leadership, with a focus on advancing the company’s operations while Socfinaf remains dedicated to fulfilling its obligations to the affected communities.
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Jeety Rubber LLC has acquired Salala Rubber Corporation, just about a kilometer away from the rubber factory.
Liberian Observer | 1 Sep 2024
Inside Jeety Rubber’s SRC Acquisition
By Robin Dopoe
— A lifeline for 900 jobs and a boost to Liberia’s Rubber Industry
Jeety Rubber LLC’s acquisition of Salala Rubber Corporation (SRC) marks a significant milestone for both the company and the local economy, with the most immediate and crucial outcome being the preservation of 900 jobs. These jobs were lost following SRC’s shutdown after violent protests had paralyzed the company’s operations. The acquisition not only stabilizes employment but also breathes new life into Liberia’s rubber industry, which plays a vital role in the country’s economy.
Jeety Rubber LLC, a subsidiary of Jeety Conglomerate, successfully acquired SRC’s natural rubber plantation after a competitive bidding process that involved Firestone Liberia and a former shareholder of the Socfin Group. The acquisition is seen as a strategic move for Jeety Rubber, which has been struggling to source enough latex (cup lumps) to operate its factory at full capacity. With SRC under its control, the rubber processing plant operated by Jeety Rubber LLC now has the opportunity to secure a steady supply of raw materials essential to its operations.
According to Jeety Rubber, the company requires a minimum of 225 tons of latex daily and 6,750 tons monthly to run its factory 24 hours a day. The acquisition will allow the company to stockpile “a minimum of two months’ supply of cup lumps/latex to operate the factory at optimum capacity.”
“This purchase of SRC, a concessionaire, moves Jeety Rubber from the category of processor into the category of both processor and concessionaire, thereby giving it immense leverage to achieve its goal of producing Made in Liberia rubber products, including latex gloves and tires, in the short and long term,” said Jeety Rubber LLC in a statement.
In addition to the economic benefits, Socfinaf S.A. has committed to addressing longstanding issues related to land compensation and access to sacred sites for local communities. These issues were highlighted in SRC’s 2023 Action Plan, developed based on the findings of the Earthworm Foundation’s on-site investigation.
Socfinaf S.A., the previous owner of SRC, said in a statement: “Despite this divestment, Socfin Group shall remain fully committed to implementing SRC’s 2023 Action Plan based on the findings of the Earthworm Foundation’s on-site investigation. This includes resolving land compensation issues and access to sacred sites.”
By Robin Dopoe
— A lifeline for 900 jobs and a boost to Liberia’s Rubber Industry
Jeety Rubber LLC’s acquisition of Salala Rubber Corporation (SRC) marks a significant milestone for both the company and the local economy, with the most immediate and crucial outcome being the preservation of 900 jobs. These jobs were lost following SRC’s shutdown after violent protests had paralyzed the company’s operations. The acquisition not only stabilizes employment but also breathes new life into Liberia’s rubber industry, which plays a vital role in the country’s economy.
Jeety Rubber LLC, a subsidiary of Jeety Conglomerate, successfully acquired SRC’s natural rubber plantation after a competitive bidding process that involved Firestone Liberia and a former shareholder of the Socfin Group. The acquisition is seen as a strategic move for Jeety Rubber, which has been struggling to source enough latex (cup lumps) to operate its factory at full capacity. With SRC under its control, the rubber processing plant operated by Jeety Rubber LLC now has the opportunity to secure a steady supply of raw materials essential to its operations.
According to Jeety Rubber, the company requires a minimum of 225 tons of latex daily and 6,750 tons monthly to run its factory 24 hours a day. The acquisition will allow the company to stockpile “a minimum of two months’ supply of cup lumps/latex to operate the factory at optimum capacity.”
“This purchase of SRC, a concessionaire, moves Jeety Rubber from the category of processor into the category of both processor and concessionaire, thereby giving it immense leverage to achieve its goal of producing Made in Liberia rubber products, including latex gloves and tires, in the short and long term,” said Jeety Rubber LLC in a statement.
In addition to the economic benefits, Socfinaf S.A. has committed to addressing longstanding issues related to land compensation and access to sacred sites for local communities. These issues were highlighted in SRC’s 2023 Action Plan, developed based on the findings of the Earthworm Foundation’s on-site investigation.
Socfinaf S.A., the previous owner of SRC, said in a statement: “Despite this divestment, Socfin Group shall remain fully committed to implementing SRC’s 2023 Action Plan based on the findings of the Earthworm Foundation’s on-site investigation. This includes resolving land compensation issues and access to sacred sites.”
Salala Rubber Corporation (SRC)
The decision by Socfinaf S.A. to sell SRC came after several years of sustained losses, as mentioned in the notes to its 2023 Annual Report.
In a separate statement, Jeety Rubber LLC said, “We recognize the importance of matters relating to land compensation and access to sacred sites to the local communities and pledge our support to Socfinaf S.A., which has indicated that despite the sale of SRC to Jeety Rubber LLC, it remains fully committed to SRC’s 2023 Action Plan.”
The decision by Socfinaf S.A. to sell SRC came after several years of sustained losses, as mentioned in the notes to its 2023 Annual Report. The company stated that it had made a strategic decision to divest SRC operations in Liberia, with the sale becoming effective on August 26, 2024. “From this date forward, the natural rubber harvested at SRC will no longer be processed within Socfin Group nor sold via its trading arm, Sogescol,” Socfinaf S.A. stated.
To ensure a smooth transition, Socfin Group’s consulting arm, Socfinco, will remain as managing agent of SRC for one year to transfer essential technical know-how to Jeety Rubber LLC. This transition period is expected to ensure that Jeety Rubber can fully leverage its new role as both a processor and a concessionaire.
Overall, Jeety Rubber LLC’s acquisition of SRC represents a pivotal investment with far-reaching implications for the local economy, the livelihoods of many Liberians, and the future of rubber production in the country. As Jeety Rubber CEO Upjit Singh Sachdeva stated, “At the appropriate time, I will address the Liberian public and provide relevant details regarding the purchase of SRC.”