Africazine:
Mantengu Limited is taking decisive action by disposing of its silicon carbide production business, Sublime Technologies, due to unsustainable financial pressures.
The Johannesburg Stock Exchange-listed company has struggled with delays in securing a new electricity tariff agreement with Eskom, leading to the decision to seek buyers for Sublime. The company has not generated income since June 2025 and has been covering the payroll for approximately 105 employees.
Mantengu Limited Faces Financial Strain
The decision to dispose of Sublime Technologies comes after prolonged delays in securing a new electricity tariff agreement with Eskom. The previous agreement, which expired on March 31, 2025, allowed Sublime to access lower electricity rates, crucial for its energy-intensive manufacturing process. However, the application for a new tariff, submitted on June 13, 2024, remains unapproved, placing significant financial pressure on the business.
With no income since June 2025, Mantengu has continued to pay its workforce while facing escalating energy costs. This situation mirrors challenges faced by other energy-intensive operations in South Africa, where prevailing Eskom tariffs have rendered operations unviable.
South Africa: Key figures on Sublime Technologies
- R4 million monthly cost savings expected from September 2026
- 0,649 associated with monthly cost savings
- 105 employees involved in the consultation process
- No income since June 2025
Next Steps for Mantengu Limited
- Completion of the consultation process by the end of August 2026
- Update shareholders on further developments regarding the disposal process
The decision to dispose of Sublime Technologies marks a significant shift for Mantengu as it seeks to alleviate financial burdens and focus on sustainable operations.
