Millions of rands in damage have reportedly been caused to a citrus packing shed in the Fort Beaufort area.
According to, as yet, unconfirmed reports, damage caused to hi-tech machinery could be as high as R200m.
Algoa FM News has seen photos and a video of the raging fire at Riverside shed on Monday, which is part of the Lona Group, headquartered in Cape Town.
Eastern Cape police spokesperson, Captain Khaya Tonjeni, has meanwhile confirmed that a case of arson is under investigation.
"We can confirm that a case of arson has been opened a Fort Beaufort SAPS after Riverside factory was burned down. Police haven't arrested anyone yet but we've got evidence and are following strong leads," said Tonjeni.
He said arrests were imminent.
An estimated 300 workers are expected to be affected.
According to the company website, Riverside has been successfully involved in citrus production in the Kat River Valley in the Eastern Cape since 1896 and boasts its own nursery, variety research blocks and produces its own trees.
The company said since deregulation it has made substantial investments in a modern packing facility, de-greening and cooling facilities. Riverside is also Fair Trade certified and has won several awards from the UK supermarket chain, Tesco.
"Riverside is an important provider of employment in the poverty-stricken parts of the Eastern Cape investing in mentorship structures and black economic empowerment as a key strategy for uplifting communities through its operations. The Industrial Development Corps (IDC) started a strategic partnership with Riverside to implement rural development projects in the Eastern Cape in 2006," according to the website.
"Lona's advisory services business model (carried out by Riverside) for Land reform projects is unique. Linking established citrus/fruit marketers and exporters such as Lona Citrus and Riverside with previously disadvantaged (PD) farms lead to a mutually beneficial partnership where skills, fruit quality and volumes improved."
"The fruit production model implemented by the Industrial Development Corps (IDC) and Riverside in the Alice Kat River Region in 2007 is a model that can be replicated in other regions of South Africa."
"Riverside delivers a range of services to the PD farmers and to its 12 existing IDC clients. These services include financial & administration, technical, marketing, packing, joint buying and skills transfer."
The Fair Trade initiative has also brought a substantial improvement in the socio-economic environment of the farm. The premium earned on the fruit sold has culminated in the creation of several projects wh are run by the Joint Body consisting of 11 members of Riverside's workers.
(Photos: Courtesy of Nolan Venter)
