KAP escalates legal battle against Sasol over ethylene dispute
KAP Industrial, the owner of polymer manufacturer Safripol, has initiated legal and regulatory proceedings against Sasol, its sole supplier of ethylene, amid escalating disputes over pricing and supply volumes.
The company confirmed that arbitration is underway regarding the price of ethylene. At the same time, a separate disagreement over Sasol’s volume commitments has led Safripol to approach the Competition Commission and Tribunal, accusing Sasol of anti-competitive conduct as a monopoly supplier.
Ethylene is a crucial building block for many plastics, including polyethylene (used in packaging, films, and trash bags) and polyvinyl chloride (PVC).
Safripol said it has previously communicated the potential supply risk associated with its exposure to Sasol as a key supplier.
“The company wishes, from a transparency perspective, to advise shareholders that Safripol and Sasol are engaged in a dispute regarding the price of ethylene, which has recently progressed to independent arbitration,” KAP said in a statement in June.
On 30 June 2025, Safripol lodged a complaint against Sasol at the Competition Commission and requested that the commission expeditiously investigate whether Sasol’s conduct as the monopoly ethylene supplier in South Africa contravenes the Competition Act.
Safripol further applied to the Competition Tribunal for interim relief under Section 49C of the Competition Act to preserve the status quo regarding the ethylene supply agreement, pending the final determination of the complaint.
“The company and its legal advisors are confident of the company’s prospects in the various matters. Given the complex nature of these matters, it is anticipated that the relevant resolution processes will be lengthy. The company will update shareholders of material developments when appropriate,” said KAP in a statement.
