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Johannesburg - 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, has informed its employees that it is going to close its two factories, in Maitland and Atlantis. At least 325 people will lose their jobs.
"Where many companies that were struggling last year now only need operating capital to keep their heads above water, SA Fine's problem is that it is getting fewer and fewer orders. 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.
In addition, the international demand for its products has also fallen sharply, Vlok says.
At the time of publishing, the company had not responded to enquiries.
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 1 400 workers their jobs.
Though these 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.
A lot of blame is being placed on the government's dragging of its feet to fully implement a tailor-made sector programme, which would include things like cheaper financing for equipment and training programmes.
The Department of Trade and Industry informed Sake24.com last week that the programme has at last been finalised, and an application for financing has been submitted to the National Skills Fund.
It is not known how long it will take to obtain the financing, which is expected to amount to about R357.8m over the next five years.
- Sake24.com
For more business news in Afrikaans, go to Sake24.