Clover, the dairy producer, is closing down its factory in Lichtenburg, in the North-West, because of poor service delivery.
The company said that it will be relocating its operations in the town to eThekwini, where it already has a plant, and where it says the municipality has been far more welcoming.
According to News24 Clover said that it had been attempting to engage with the Ditsobotla Local Municipality (under which Lichtenburg falls) for years, to address electricity and water failures, as well as crumbling road infrastructure, but to no avail.
A reliable water and electricity supply are vital to the production of milk and other dairy products and the road leading to the factory is now almost impassable due to potholes, according to reports.
The move will cost 330 people their jobs.