Home / Knowledge / News / Textiles / Chinese textile enterprises face trouble in South Africa
Chinese textile enterprises face trouble in South Africa
Nov '12
Textile mills owned by Chinese entrepreneurs located in the old industrial region of Newcastle city in South Africa’s Kwazulu-Natal province are currently struggling for survival.
The industrial region has over 120 enterprises, with more than 50 percent of them being textile mills.
At present, unemployment rate in Newcastle city has risen to 60 percent. The total number of people employed in the textile industries has declined to around 7,000, from the peak 13,000.
During its peak period, the textile industry accounted for about one-third of the total industrial jobs in Newcastle.
The textile industry also paid around R4 million in taxes, which was one-tenth of the all local taxes collected.
Chinese textile entrepreneurs have invested over R1 billion in the Newcastle region and are currently a source of livelihood to about 25,000-50,000 local citizens.
The area inhabits about 2,000 Chinese people, which include shopkeepers and traders, besides textile factory owners.
At present, however, the Chinese textile mills in the Newcastle area are struggling for survival owing to a number of reasons. First, there has been an overall slump in South African textile industry, which can be gauged from the fact that the number of persons employed by the textile and clothing industry in South Africa has dropped to 55,000 last year from over 200,000 a few years ago.
Secondly, there is a rise in labour costs, which is leading to a dip in corporate profits and is also a cause for frequent employer-worker disputes.
Moreover, the plight of Chinese textile entrepreneurs has further worsened due to flooding of low-priced imported textiles into the country, which is offering cut-throat competition to South African domestic textile industry.
As a result, the Chinese textile enterprises in the Newcastle area are required to either make suitable changes by upgrading machinery and adopting new techniques, or shift to other countries or wait for extinction. 

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 22nd Feb 2017

Amazon UK to create 5,000 full time jobs this year

Amazon UK said it will create more than 5,000 full time jobs this...

Textiles | On 22nd Feb 2017

Telangana CM seeks better life for handloom weavers

Chief minister of Telangana, K Chandrashekhar Rao assured handloom...

Textiles | On 21st Feb 2017

Net profit at Indorama Ventures zooms 145% in 2016

Net profit at Thailand headquartered and Aloke Lohia led Indorama...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search