>>
Home / Knowledge / News / Textiles / Biggest textile mill announces closure

Biggest textile mill announces closure

19
Nov '09
The textile sector in the African continent is going through real tough times. Textile mills are closing down with amazing regularity. The latest to announce closure is the 5,000 employee strong Caratex Botswana.

These textile mills have not been able to withstand the global recessionary trends which have been sweeping across the world since the last one year. Caratex has announced that it will close from December 10, 2009.

Mr. Craig Chow, Managing Director of Caratex Botswana said that it was becoming difficult to compete with other cost competitive countries like China and Bangladesh since their industry has been heavily subsidized by their respective countries.

He blamed the delay by the Botswana Government in announcing incentives for the industrial sector for the closure. He said the earlier incentive scheme which helped Caratex grow had been withdrawn and had not been replaced with any other subsidy.

Caratex Botswana was set up as Joint Venture Company in 1998, which grew by leaps and bounds. Employee strength increased from 500 in 2001 to 1,300 in 2003 and currently between six plants it provides jobs to more than 5,000 employees.

The company also took advantage of the AGOA and COTONOU agreements, under which it could export duty free products to the US and EU respectively. Considering that Caratex was the second biggest employer in Botswana, this closure will leave a big impact.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Jaroslaw Baczewski | Dreamstime.com

Textiles | On 6th Dec 2021

Global cargo demand up by 9.4% in Oct 2021 over Oct 2019: IATA

Global demand was up by 9.4 per cent in October 2021 compared to the...

Pic: Phanthit Malisuwan | Dreamstime.com

Textiles | On 6th Dec 2021

NCTO offers key policy recommendations to support US industry

In a written testimony before the US House Ways and Means Trade...

Pic: ITMF

Textiles | On 6th Dec 2021

Business situation positive across global textile value chain: ITMF

Business situation along the global textile value chain is very good, ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Textile Industry, Head honchos

Textile Industry
Head honchos

Led by MMF, Indian apparel exports likely to double in next 3 years

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Alberto Gotti,

Alberto Gotti

Danitech was born from the will of a group of technicians to offer the...

Sanjay Jhunjhunwalla,

Sanjay Jhunjhunwalla

In the financial hub of eastern India, Kolkata, a humble production...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

Germany-based Dieffenbacher Group is a producer of high-quality composites ...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah & Sandeep is a luxury menswear label...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

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


December 2021

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


Advanced Search