Published: September 2, 2024
Luxembourg – Socfinaf S.A. has officially announced the sale of its subsidiary, Salala Rubber Corporation (SRC), located in Liberia. The divestment marks a strategic move by the company, which has been grappling with sustained financial losses in SRC operations for several years.
The agreement, finalized on 26 August 2024, transfers ownership of SRC to Jeety Rubber LLC.
According to a statement from Socfinaf, “SRC’s natural rubber production will no longer be processed within the Socfin Group nor marketed through its trading division, Sogescol.”
Despite this, Socfinco, the consulting subsidiary of the Socfin Group, will continue managing SRC for a year to ensure a smooth transition of operational knowledge and expertise to Jeety Rubber LLC, the new owner.
The release noted that the decision to divest SRC was hinted at in Socfinaf’s 2023 Annual Report, released in April 2024. The company has stated that it remains committed to addressing critical issues identified in SRC’s 2023 Action Plan, developed after an investigation by the Earthworm Foundation.
“The new ownership under Jeety Rubber LLC has expressed full support for the continuation and implementation of this Action Plan,” Socfinaf noted, highlighting the importance of resolving land compensation disputes and ensuring access to sacred sites for local communities.
The Socfin Group also reassured stakeholders that this divestment does not signify an end to its operations in Liberia.
“The company will continue its longstanding involvement in the country through its operation of the Liberian Agricultural Company (LAC),” the release noted, reaffirming its commitment to sustainable and responsible investment in the region.
The Liberian Investigator has learned that SRC has six years remaining on its concession agreement with the government of Liberia, which expires in 2030. A possible renegotiation is expected to be on the agenda.
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