The Western Cape government has welcomed Tiger Brands decision to keep its fruit factory in Ahston open for another season.

The Langeberg & Ashton Foods (L&AF) plant was due to shutdown next month. But Tiger Brands indicates that following engagements a compact has been reached giving it more time to sell the plant. It adds that in recent weeks, a significant number of parties have expressed an interest in possibility taking over the factory.

The move throws a lifeline to 250 permanent employees and 4 300 seasonal workers.

Provincial Agriculture MEC Ivan Meyer has given an undertaking to continue supporting the industry in its quest to identify an investor.