05.04.2005 Business & Finance

Juapong Textiles To Close Down By June

By JoyOnline
Juapong Textiles To Close Down By June
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(JoyOnline) -- Juapong Textiles Company Ltd is expected to shut down its operations completely by June this year. This is because the one time popular grey-baft company is no long viable. Most of the workers have been paid and sent on leave prior to the final closure of the company. The problems of Juapong Textiles date back to several years when it could boost of more than 1,500 employees. Those were the days when Ghana could pride herself of a booming textile industry. But bad management practices and other factors affected the fortunes of the company. However the company has also been affected by the unfair competition from foreign cheap textiles. Juapong textiles has been supplying grey-baft to its sister company Glisco Ghana Ltd, producers of GTP wax prints, but sources close to both companies told Joy business report that Glisco has turned to foreign markets for the supply of grey-baft since it is cheaper. So far only a skeletal staff has been left at the company's premises, while some 700 employees are left without a job. The sources also said management of the textiles company are hoping to sell off the property, but it is doubtful if there will be a buyer who will continue to run the place. Another textile company producers of Printex have also threatened to relocate to Nigeria where textile companies enjoy support from government.
Meanwhile, the Textiles and Garments Workers Union T'GLEU has not abandoned the fight to seek policy changes that will revitalise the dying textiles industry.
Currently the leadership of the union is trying its luck with the Employment Ministry after its efforts with the Trade and Industry Ministry yielded little results

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