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Malaysia's Ramatex signals bolting
17 May '06
2 min read
Malaysian business Ramatex will soon shut down, resulting a removal of about 5,000-textile workforce.
The company has told the Namibian government to take charge of the company.
Albert Lim, Ramatex boss on returning from Singapore reported the Cabinet that only two options were left with the government, either buy the Namibian company or he would shut down.
An official of the National Union of Namibian Workers (NUNW), told, "Ramatex wanted N$490 million (US$82 million) for the factory including its equipment but if the government does not concur, all workforce would be laid off, and the machinery and equipment would be dismantled and shipped overseas."
In an attempt to salvage Namibia's already distressed textile industry, a technical team has been set up under the leadership of Prime Minister Nahas Angula.
All stakeholders, together with the labour union representatives, are being consulted.
Ramatex set up shop in Namibia in 2002 to produce fabrics for the US market under the Africa Growth and Opportunity Act (AGOA), which gave clothing produced in African countries privileged entrance to the US market.
The company invested about US $150 million in a industrialized plant on the western outskirts of Windhoek, the capital, and the municipality provided approximately $20 million in required infrastructure.
Grievances about meager wages, unjust labour conditions and dismissals have dogged Ramatex from the begining.
Also ecological apprehension about groundwater pollution by toxins ensuing from the fabric-dyeing procedure, in flouting of definite instructions laid down by the Windhoek municipality.
Last year 1,600 workforce received retrenchment packages after another Malaysian garment company, Rhino Garments, a subsidiary of Ramatex Textiles Namibia, shut its doors while workforce dissented.
The company has told the Namibian government to take charge of the company.
Albert Lim, Ramatex boss on returning from Singapore reported the Cabinet that only two options were left with the government, either buy the Namibian company or he would shut down.
An official of the National Union of Namibian Workers (NUNW), told, "Ramatex wanted N$490 million (US$82 million) for the factory including its equipment but if the government does not concur, all workforce would be laid off, and the machinery and equipment would be dismantled and shipped overseas."
In an attempt to salvage Namibia's already distressed textile industry, a technical team has been set up under the leadership of Prime Minister Nahas Angula.
All stakeholders, together with the labour union representatives, are being consulted.
Ramatex set up shop in Namibia in 2002 to produce fabrics for the US market under the Africa Growth and Opportunity Act (AGOA), which gave clothing produced in African countries privileged entrance to the US market.
The company invested about US $150 million in a industrialized plant on the western outskirts of Windhoek, the capital, and the municipality provided approximately $20 million in required infrastructure.
Grievances about meager wages, unjust labour conditions and dismissals have dogged Ramatex from the begining.
Also ecological apprehension about groundwater pollution by toxins ensuing from the fabric-dyeing procedure, in flouting of definite instructions laid down by the Windhoek municipality.
Last year 1,600 workforce received retrenchment packages after another Malaysian garment company, Rhino Garments, a subsidiary of Ramatex Textiles Namibia, shut its doors while workforce dissented.
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