Fuel retailer Astron Energy awards contract and financing to Verigreen Packaging
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IN A BID to boost small businesses, local fuel refiner and retailer Astron Energy, which holds the Caltex license in South Africa and Botswana, granted Verigreen Packaging a contract and preferential financing.
The contract and the financing were carried out within the framework of the development program of Astron Energy.
In a statement released yesterday, Astron Energy said that instead of giving the contract to one of its regular suppliers, it chose to give the contract to a small company.
Astron Energy chief executive Jonathan Molapo said he believes every large company has an obligation to elevate small suppliers as part of their business model. He said corporate supplier development has provided more than R100 million in interest-free loans and lines of credit over the past five years.
“It’s a real win-win – the small business gets a base on which to invest and grow, and we have a sustainable and transformed local partner,” he said.
Verigreen chief executive Gareth Elcox said the partnership shows how big companies can help small businesses.
“This is a classic example of how large companies can partner with smaller ones for the benefit of all,” he said.
Astron Energy Lubricants Laboratory Manager Meshach Soonpall described the relationship with Verigreen Packaging as a collaboration that provides 200ml, 500ml, one liter and five liter blow molded containers for Caltex lubricants and private brands.
“They have added tremendous value and are our go-to people for any specialist requirements or problem solving on other product lines,” he said.
Elcox added that small businesses like Verigreen Packaging cannot achieve significant traction and growth on the basis of tendering alone, because the larger, more established operators will always have lower costs: “This type program is essential to enable SMEs to obtain guaranteed work which allows them to capitalize on their investment. “
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