“The Trade and Industry Department said it would grant loans with preferential lending rates to textile firms wanting to upgrade equipment and encourage cost-sharing within the industry…It would also crack down on illegal imports of cheap textiles from Asia, which have already put several South African companies out of business and forced others to cull jobs. It would also cut import duties on specialist fabrics…Other forms of assistance announced by the department, included a preferential loan scheme, aimed at improving the sector‘s international competitiveness…Under this, the Industrial Development Corporation will offer loans at prime less 5% to develop enterprises…The SA Clothing and Textile Workers Union said the plan to allow companies to import some fabrics used in clothing and home textile manufacturing duty free would help keep production costs down…The government has said it is opposed to direct bailouts of companies but will help certain industries to protect jobs through state institutions..
Date:5/25/2009
Source:Weekend Post