Ghana – China Textile partnership begins

President John Agyekum Kufuor has stated that Ghana cannot survive alone where textile production is concerned unless she goes into partnership with China.

Already, he said there is an existing partnership between the two countries aimed at reactivating the Juapong Textile Mills. Perhaps, the printing of the 50th Independence anniversary cloth from China marked the beginning of the partnership.

“If you can’t beat them join them’ is a well known survival strategy. I wish to call on labour to corporate in order to sustain industry and jobs” stated the President.

President Kufuor announced this at the Jubilee National May Day parade in Accra. It was under the theme, “Labour and Nation Building: 50 Years and Beyond.”

According to the president, government decided to step in when Vlisco Ghana Group divested itself of the company, because of the company’s potential viability and also to save jobs. He explained that currently 185 workers including five Chinese management staff have been employed and that at full capacity Juapong will employ 800 workers.

Government hopes to inaugurate the revitalized facility on May 11, 2007.As government goes all out for China, efforts of stakeholders to revitalize the textile and garment industry is set to hit the blocks since the economy is recording a rapid surge in the sale of fake logos and designs of most textile firms on the market.

The president’s announcement comes at a time when the country’s textile industry is struggling to hold its own. With this pronouncement, what happens to the so called campaign to check the influx of cheap textile from Asia, especially China into the country?

Industry watchers are worried that if the flood gates are opened for more Chinese textile the local industry will collapse totally. In an interview with Public Agenda, Mr. Abraham Koomson of the Textile, Garments and Leather Employees Union, (TEGLEU) questioned the basis of the joint partnership with China.

He explained that China produces under cheap labour against international labour regulations that Ghana strictly observes. “China’s environment differs.

They produce at a far cheaper cost so they have a field day. What is the interest of China in this proposed partnership?

We need to analyze the situation critically.” He continued, “Employing and sustaining workers is the issue to look at. If China is going to bring in high technology then it will not absorb the unemployed hands.”

Mr. Koomson recalled that China was a major player in Ghana’s textile industry in the 1960s. He said China owned Ghana Textile Manufacturing Company, (GTMC) and Akosombo Textile Limited, (ATL) as well as a majority shareholder in Tema Textile.

He said Juapong Textile Mills used to produce solely gray baft for GTP but GTP began importing from China since it was no longer profitable to buy from Juapong which produced at a high cost.

“So now is Juapong going to produce gray baft or print textiles? I have my doubts.”

Textiles that come from China do not only carry the designs of Ghanaian cloths but are imitated to let them appear like made in Ghana cloth.

Although the Chinese textiles are not durable compared to made in Ghana ones they sell far below Ghanaian textiles.

Consequently, most retailers of textiles from local textile companies such as Akosombo Textile Limited (ATL) Printex, and Ghana Textiles Prints (GTP) have reportedly abandoned the local cloth and are now selling wax prints from China which is far cheaper.

Local textile companies over the years could not stand the competition with cheap foreign imports. Notable companies including Juapong Textiles Limited, Akosombo Textiles Limited, (ATL), Ghana Textile Print and Ghana Manufacturing Company, (GTMC) are struggling to stay in business.

The textile industry in Ghana used to contribute significantly to the Gross Domestic Product, (GDP) and employed a chunk of the unemployed youth. For this reason any further weakening of the sector would adversely affect the economy.