IDC investment keeps textile industry going
Government’s R1bn a lifesaver for factories
DESPITE tough times the clothing and textile industry has gone through because of the economy and cheap Chinese imports, the industry is now making progress after millions of rand were pumped into the sector, says Ebrahim Patel, Minister of Economic Development.
He was speaking at Sheraton Textiles in Southfield where he addressed workers yesterday.
Patel said the South African government is investing R1 billion in the Western Cape’s clothing and textile industry over a fiveyear period.
This forms part of a R6bn investment for all sectors in the province. He said this includes the technology incentive sector and the tourism industry.
“It has helped to boost growth and create jobs in the Western Cape.”
Patel said Sheraton Textiles was an interesting case of how some companies in the sector have managed to keep jobs and grow despite challenges such as cheap imports from China. He said the government has assisted the factory with two strategies.
“The first is defending the industry from cheap imports and the second strategy is to improve the productivity and efficiency of the factory but also the design capability. Sher- aton was able to create 75 jobs as a result of new machinery and changes to design strategy.”
Patel told workers that during the period when the sector was going through tough times with job losses and people being sceptical about the industry, the government stepped in and through the Independent Development Corporation (IDC) has been working with companies like Sheraton.
“Today the IDC is the majority shareholder in this company. The money the IDC has put in has kept jobs going.”
He said with the money invested, new machinery could be bought to replace the ageing machinery which hampered productivity and which helped to create 75 new jobs. The firm employs more than 400 people.
Nick Steen, chief executive of Sheraton Textiles, said the 96-year-old company got into difficulty in 2007 and got involved with the IDC, who invested R40 million into the firm. “We have changed a lot of the things we have done. Today, Sheraton brands are found in most major retailers which is gaining acceptance. We can now compete with international brands.”
Steen said that without the IDC the company would not have been where it is today.