Home / Knowledge / News / Textiles / Textile major Seardel to downsize operations
Textile major Seardel to downsize operations
13
Apr '09
Seardel, one of the largest textile manufacturers in the country has recently announced a restructuring plan for the company. In a statement the company said, that if needed, it would need to close a few of the operating divisions.

The textile major employs around 1,400 employees amongst its spinning, weaving, finishing and denim divisions and dependent on its consultative process with the required parties, would opt to close any of the departments.

The company said, the South African textile industry has been under tremendous pressure since the last few years, due to many factors like import of cheap textile goods, legally and illegally which was undermining the sector.

It also added that it was also very difficult to compete with state owned companies which attracted funding through the Industrial Development Corporation (IDC) and also many companies received subsidies, since they were state owned.

It went on to say that, there have been massive hikes in input costs and most of these could not be passed on to their buyers and also that there has been non-compliance in application of the minimum conditions of employment by its competitors.

All these factors made it impossible to operate as a purely commercial enterprise and had translated into huge losses for the company and it had looked for all possible avenues to rectify the situation including re-organizing, re-structuring and down-sizing operations.

The company adds, over the past 10 years, it has spent over R360 million in plant and machinery in order to raise efficiency levels, but was now left with no option, but to, close down a few of the operations and sell assets.

Fibre2fashion News Desk - India


Must ReadView All

New Investment for traditional Myanmar textiles, weavers

Textiles | On 21st Oct 2018

New Investment for traditional Myanmar textiles, weavers

Myanmar Artisans Co Ltd, Turquoise Mountain and the DaNa Facility,...

Pak knitwear exporters plan environmental compliance

Textiles | On 21st Oct 2018

Pak knitwear exporters plan environmental compliance

Pakistani manufacturers and exporters of knitwear garments have...

Courtesy: Hyosung

Textiles | On 21st Oct 2018

Hyosung converting spandex plants into smart factories

Hyosung TNC, the textile and trading unit arm of Hyosung, is...

Interviews View All

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Sunil Rathore, Lacoste India

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Darshan Mehta, Infinium Polychem

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Liz Manning,

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Shivani Swamy,

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Bani Batra,

Bani Batra

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

Tony Ward, Tony Ward

Tony Ward
Tony Ward

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

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

Leave your Comments


October 2018

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

news category


Related Categories:

Advanced Search