Seardel Reduction Of Large Textile Enterprises In South Africa Under The Crisis

Seardel, one of South Africa's largest textile manufacturers, recently announced a restructuring plan.

The company said in a statement that if necessary, the company will conclude several business sectors.

The large textile enterprise, including spinning, weaving, dyeing and finishing, and denim department, employs about 1400 people. The fate of these departments depends on the consultative process with the contracting parties, and any department may be closed.

The company said that the textile industry in South Africa had been under great pressure, because in the past few years, many factors, such as the import of cheap textiles, legal and illegal imports, had caused damage to the South African textile industry.

The company also said that it is difficult for them to compete with state-owned enterprises. State owned enterprises attract funds through Industrial Development Corporation (IDC), and many enterprises receive subsidies because they are state-owned.

The company said that the cost of investment has risen sharply, but most of the cost increases can not be passed on to buyers, while competitors do not comply with the minimum employment requirements.

All these factors make the company unable to operate as a pure commercial enterprise and turn into a huge loss of company. The company has been looking for all possible ways to rectify the situation, including restructuring, readjustment and downsizing.

The company added that in the past 10 years, it has invested 360 million Rand in factories and machinery to improve efficiency, but now it has no choice but to close some businesses and sell assets.

Editor in chief: Xu Qiyun