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26.10.2005 Business & Finance

Juapong Textiles was closed down to .....

By Statesman
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... save sister company -MD of Tex Styles reveals

THE Managing Director of Tex Styles Ghana Limited, Gilles Moison, has debunked the various theories and motives attributed to the recent collapse of its sister company, Juapong Textiles Limited, insisting that the close down of the company was due to a corporate decision aimed at ensuring the survival and profitable operations of Tex Styles.

“We would like to insist that contrary to whatever theories and motives are being propounded, it was purely a business decision which was meant to give Tex Styles Ghana Ltd the chance to survive,” he said at the inauguration of the newly-elected Local Union Executives of the company at Tema Friday.

He said the textile industry in Ghana was passing through a turbulent period which has made the company to go through difficult times and face huge challenges. The company, he stated, was compelled to downsize its operations due to poor sales. Lamenting that the volume of sales has not increased since the year 2000, he indicated that the challenges the company was encountering is a result of intense local and foreign competition, high cost of operation, high cost of capital and the depreciation of the cedi against the euro.

“We commend the efforts of Government to achieve macro-economic stability. Inflation and the cost of borrowing have continued to decline. However, unfair competition has increased. Government has consequently put in bold steps to restrict illegal imports. The benefits are yet to be realised but we hope we will see them soon,” he said. He noted that the company was faced with the reality of achieving outstanding performance in the face of the challenges it is trying to overcome. He said it has decided to focus on waste reduction and increasing efficiency of its operations to reduce cost of production through the Total Productive Manufacturing mechanism.

In an address, Morgan Ayawine, Principal Industrial Relations Officer of the Industrial and Commercial Workers Union at Tema, said the recent influx of shoddy and cheap foreign goods into the country does not augur well for fair competition as local industries suffer debilitating effects. Mr Ayawine singled out the textile industry as being the most affected by the unfair competition and called for the establishment of a joint taskforce consisting of representatives from Government and the textile sector “to monitor illegal activities at the borders since checks at the Takoradi port alone are not only inadequate but a window dressing measure.” He noted that industrial peace and harmony at the Tex Styles was more crucial than ever due to the current operational difficulties of the company.