Towel company relaunch saves jobs
After 500 jobs were lost after Glodina closed down, 211 of those employees have since been re-employed with the help of new investors such as the Industrial Development Corporation (IDC) and the KZN Growth Fund.
HUNDREDS of jobs have been saved following government’s intervention at a textile factory in Hammarsdale.
Glodina, one of South Africa’s largest towel manufacturing companies, closed down following cash flow challenges and resulted in 500 jobs being lost.
However, 211 of the employees have now been re-employed following the intervention which injected R150 million into the company’s operations.
The KwaZulu-Natal Cabinet has applauded the Department of Economic Development, Tourism and Environmental Affairs MEC, Sihle Zikalala, for the intervention.
This was after Zikalala linked the new investors in the company with development finance institutions such as the Industrial Development Corporation (IDC) and the KZN Growth Fund.
IDC has invested R150 million in Glodina to help the business acquire assets, have working capital and source raw materials.
IDC CEO, Geoffrey Qhena, said the growth and operational success of the business is expected to have a positive impact on the creation of employment in the province.
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“Now that the factory is open, our projection is that more than 200 people will be employed at the Glodina plant over the next three to four months, as the company continues to increase its production capacity to reclaim its esteemed position in the market,” he said.
Qhena added that DC’s investment in Glodina was motivated by the business’ position as a recognised supplier of towels to the local retail and hospitality sectors, and its significant prospects of job creation and growth.
“We continue to support businesses which manufacture locally, especially those like Glodina, which has set a standard through production of their high quality and strong brands,” Qhena added.
Zikalala cut the ribbon during the launch event held at the company’s premises in Hammarsdale.
The company’s production plan will see priority being given to the manufacturing of the Glodina Marathon towel range, which has been designed for the hospitality industry.
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