Water crisis affects firm

Business

By GYNNIE KERO
WATER disruptions in Wewak, East Sepik, is costing businesses such as South Seas Tuna Corporation Ltd thousands of kina.
Managing director Mike McCulley said the company ceased production for three days last week and laid off about 2,000 workers.
The tuna loining company employs 2,650 workers.
It requires around 650,000 litres of water per day to process tuna.
McCulley said without production, South Seas incurred huge daily fixed costs which were not offset with product that could be sold to absorb the costs.
Last week, McCulley said they had to let go 2,000 workers.
Most of these workers were from outside Wewak and were renting in town.
McCulley said Water PNG head office in Port Moresby needed to step in and help its Wewak branch.
He noted that the company had been assisting Water PNG Wewak branch in solving some of its problems whenever it could over the years.
It is understood that water disruptions in Wewak has worsened.
McCulley said they stopped production last Wednesday.
He said “2,000 manufacturing personnel laid off.
“The layoffs are not permanent. When water supply is available, we will commence operations again.
“We hope we will receive some supply over the weekend and resume on Monday (today),” McCulley said.
“So far this year, it has been three days for both shifts and this (last) week its three days for the second shift.”