Home / Knowledge / News / Apparel/Garments / Cheap Chinese imports force local garment cos to shut down
Cheap Chinese imports force local garment cos to shut down
18
Aug '08
Everest Fashions Ltd, a Palmerston North based clothing manufacturer which once prided itself for surviving all the changes in the apparel industry, has now decided to pull down shutters. Employees of the company have been informed that the company would close on August 22, rendering 28 people jobless.

Owner of the company reasoned out saying that it was becoming increasingly difficult to compete with cheap imports from China. Besides, increase in holiday leave and minimum pay under the labor-led Government had mounted labor costs affecting both small and large scale clothing enterprises in uncountable ways.

Moreover it has also been informed by the National Distribution Workers union that LWR-owned Beardsley Pearce in Levin would also be closing soon, bringing the total job loss in clothing manufacturing in central North Island to 40.

As a matter of fact, these closures came following those of Godfrey Hirst owned Feltex plants in Foxton and Feilding which saw nearly 160 workers lose their jobs.

Additionally, Godfrey Hirst's Dannevirke mill had also recently laid off 12 workers while Rembrandt Suits in Naenae has laid off around 200 of its staff.

Garment producing companies realized that despite employing highly skilled workers, wages paid were much less than what they deserved. But even then, the gap in labor costs when compared to China was way too much which made Chinese garments more attractive and price-competitive than locally produced clothing.

Most of the apparel producers agreed to have faced a common problem and opined that slowing of economy had not done so much damage as compared to that done by cheap imports from China. If the situation is not brought under control, garment industry of the country is likely to collapse under the pressure emerging from competing countries.


Must ReadView All

Robert Lighthizer speaking at the opening of the ministerial plenary of the 16th Forum of AGOA, in Lome. Courtesy: US Embassy in Togo

Textiles | On 17th Aug 2017

US committed to Africa, Lighthizer tells AGOA forum

The United States and Africa can jointly create a better business...

Textiles | On 17th Aug 2017

Sri Lankan textile exports down 4.1% in May 2017

After showing positive trend for two consecutive months, Sri Lankan...

Courtesy: CBEC

Textiles | On 17th Aug 2017

E-commerce firms need to file monthly statements: CBEC

India’s Central Board of Excise and Customs (CBEC) has clarified that ...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
18.5%
Skip
14.8%

Total Votes: 27

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
37.0%
No
40.7%
Skip
22.2%

Total Votes: 27

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
81.5%
No
7.4%
Skip
11.1%

Total Votes: 27

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
55.6%
No
11.1%
Skip
33.3%

Total Votes: 27


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X