Business News of 2014-04-22

Made-in-Ghana goods get boost

Government’s buy-made-in-Ghana-goods agenda seems to be going down well with some institutions, as the Kumasi Shoe Factory projects to produce about 80,000 pairs of security shoes this year.
Several companies have placed orders and new orders are also being negotiated on a daily basis. The shoe factory is a joint venture between Defence Industries Holding Company (DIHOC) Limited and Knight Ghana Limited.
Acting General Manager, Defence Industries Holding Company (DIHOC) Limited, Mr. Kingsley Asiedu Koranteng in an exclusive interview with The Finder said the company was on the verge of completing the production of 4,000 pairs of jungle, combat and training boots ordered by the Ghana Immigration Service (GIS).
He explained that the company has supplied almost 1,000 pairs of boots to the Ghana Ports and Harbours Authority; 40 pairs of boots to the Kofi Annan Intentional Peacekeeping Centre (KAIPTC); 40 pairs of boots to Adate Transport Services; and 100 pairs of boots to Rlg Security, among others.
Mr. Koranteng said the company was in discussions with the Ghana Police Service, which has plans to order between 20,000 and 30,000 boots, while the Ghana Armed Forces was also prepared to order about 20,000 pairs of boots.
He stated that discussions were also ongoing with the Interior Ministry for all other state security agencies such as the Ghana Prisons Service, Ghana National Fire Service, as well as para-military organisations to purchase boots from the factory.
The acting General Manager said mining companies, Coca Cola, Guinness Ghana, Volta River Authority (VRA), Ghana Airport Company Limited (GACL), Volta Aluminium Company (VALCO), Tema Oil Refinery (TOR), Ghana Grid Company (GRIDCo) and many others have all expressed interest to purchase from the company.
He said discussions are also ongoing with Tullow Oil while there are plans to visit the Western Region to meet with oil companies as part of efforts to sell shoes.
Mr. Koranteng disclosed that officials of the company are in the Czech Republic to purchase some additional machines to expand its operations; the machines are expected to arrive in the country in about three months.
He said the company employs 50 Ghanaians, and that the leather for producing the shoes are imported from India and Argentina, saying the company spends about $60,000, excluding shipping, to import leather for the production of about 4,000 pairs of security shoes.
He noted that the company can produce about 200,000 pairs of boots a year in its current state, adding the company can, however, produce about one million pairs of shoes at full capacity.
Mr. Koranteng said the company should be operating at full capacity by end of 2015, at which time about 800 people would be employed.
He said discussions were also ongoing with the Ghana Education Service to produce sandals for all SHS students in the country, adding that the company produced 2,000 sandals for senior high school students last year.