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SOUTH AFRICA: Another S A Textile Group is Shutting Down

With local manufacturers struggling to compete against international products, another South Africa textile group is going to close down. SA Fine Worsteds, manufacturer of worsted for wool suits among other things. As it is receiving less orders. This closure will leave more than 325 people without jobs.

In addition, the international demand for its products has also fallen sharply, Vlok says.  Whereas many suits were made in South Africa in the past (from local textiles), more and more ready-made suits are now being imported,' Etienne Vlok, a researcher at the South African Clothing and Textile Workers' Trade Union (Sactwu) says.

Some 13 400 people were laid off in the clothing, textile and footwear industry in the first 11 months of 2009. In this period, 65 factories were closed, according to Sactwu figures. One of the major victims was the Seardel subsidiary Frame, which closed a factory in KwaZulu-Natal. That move cost 1400 workers their jobs.

A lot of blame is being placed on the government's tailor-made program termed as one of the causes for this, as this program could include cheaper financing for equipment and training programs.

Though labour-intensive industries enjoy special support from the government as part of its industrial strategy, there has so far been little success in halting the stream of job losses in the industry during the past few years.

Source: Agencies • News Courtesy: BharatTextile.com