K-way invests R2m ‘to gain edge over imports’

K-WAY, a manufacturer of outdoor clothing that is part of the Cape Union Mart Group, recently invested R2m in equipment and machinery in order to gain an edge over the influx of cheap imports from East Asia, Cape Union Mart said yesterday.

These imports continue to put strain on domestic clothing, textile and footwear makers.

“Cheap and often illegal imports from Asia and China have compelled domestic manufacturers to step up performance,” Cape Union Mart CEO Andre Labuschaigne said.

K-Way, which employs about 190 people, also increased the size of its factory’s production floor by 700m at a cost of more than R3m, to enhance design and production capabilities amid a challenging manufacturing sector.

South African manufacturers are competing with the Asian producers’ cut-throat prices, which are mainly a function of low labour costs, large production runs and subsidies offered by the state and other authorities.

Price is no longer the only determining factor of competi- tiveness in the industry. “These markets offer low-complexity products which see all added value removed and so we cannot compete with them on price alone without sacrificing quality,” Mr Labuschaigne said.

“However, we have succeeded in building a sustainable advantage by, firstly, manufacturing the best top-end technical adventure clothing using the latest production technology methods and, secondly, by focusing on highly efficient operational capabilities,” he said. Over the past eight years, demand for KWay products has increased sub- stantially, with sales increasing more than five-fold over the time period, the company said.

The Cape Union Mart Group also houses other major local brands such as Old Khaki, Sparks and Ellis, a uniform company, and Poetry — a lifestyle concept store for women.

“We will continue to encourage the government to scrap or lower import duties on fabric while it finds solutions to bolster the local textile industry. This in turn would see further growth of the manufacturing sector,” Mr Labuschaigne said.