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Business News Thu, 30 Jun 2005

Juapong Textiles Closes Down Today

The Juapong Textile Limited (JTL) officially folds up its operations today. About 1,000 workers have been retrenched following the closure. JTL?s demise comes at the heels of the temporary closure ten days ago of a distressed Ghana Textile Printing Company which laid off about 700 of its workers.


The fate of the two factories is seen as a reflection of the general depression to which the local textile industry has sunk in the face of unfavourable competition from cheap import substitutes mainly from China.


A source told the paper that the closure of JTL became necessary, following a decision by its majority shareholder, VLISCO Company of Holland, to pull out of the company as a result of under-production and a high debt stock.

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JTL was established in 1968 primarily to produce and supply gray baft to feed other textile industries in the country. Besides, the source explained that the cost of producing the gray baft was expensive compared to the cost of imported finished product from China, and this had created an unhealthy regime for the local industry to thrive.


Some of the retrenched workers who spoke to the paper expressed shock, saying they could not prepare adequately due to the short notice given to them.

Source: Times
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