[ 2015-11-12 ]

Akosombo Textiles producing despite industry challenges
Managers of Akosombo Textiles Limited (ATL), one
of Ghana’s leading textile manufacturers since
1967, says the company is still producing despite
the challenges facing players in the local textile
industry. An official of Printex, another local
textile manufacturer, had suggested in an
interview on the Citi Breakfast Show that ATL is
not producing. The official made reference to ATL
in an attempt to buttress his point that the local
textile industry is virtually on the verge of
collapse due to the influx of cheap imported
fabrics and the copying of Ghanaian textile
designs.
But in an interview with Citi News, the Sales and
Marketing Director at ATL, Steve Dutton, admitted
that inasmuch the company was going through
difficult times just as other firms, it is still
running and producing for the local and
international market. “As far as ATL is
concerned, we like the other textile companies in
Ghana has been affected badly by cheaper foreign
imports specifically from China, India and places
like that. Usually they come in from Togo which is
a free port; so they are not paying any import
duties or tax and it seems they are smuggling the
goods into Ghana. It’s true to say that has
affected everybody’s business in Ghana but not
only because of the cheap price; but also because
they are copying the designs and sometimes the
brands of the local manufacturers, causing a lot
of confusion in the market”. He said although
ATL has lost about fifty percent of its market
share since 2005; it still employs about 1,000
workers from an initial figure of over 1,600.
“Our volume share has reduced dramatically at
least by 50% or maybe more. It’s even more
difficult to say when you don’t really know how
much of these smuggled and pirated goods come in
to compete with us because there are no official
figures. Having said that, we have still managed
to keep operating; we are still operating today
and the factory is opened and producing; and we
are managing to survive as the taskforce
activities are helping”. “Over the years that
we have been struggling, we have managed not to
make any people redundant from our factory. We are
still employing approximately over a 1,000 people.
The figure use to be around 1,600. If business can
pick up and the right things are done, we might
even be in the position to employ more people. I
should also add that, ATL is now the only factory
that has its own spinning and weaving operation,
so we are still a vertically integrated factory
and that’s why our workforce is quite high”.
ATL strategies for survival (adsbygoogle =
window.adsbygoogle || []).push({}); Mr. Steve
Dutton says one of the company’s strategies to
survive amidst the challenges, is the introduction
of unique products for targeted consumers. “We
also have reintroduced certain products which we
previously stooped producing; for example ATL wax;
which we introduced into the local market some
months ago. We are also producing ABC wax which is
mainly for export particularly to the big market
in Nigeria and for the whole region; as well as
Benin, Togo, Niger and Cote D’Ivoire. That was
mainly for export, so we are also now trying to
develop some unique products for the local market.
The other area that has helped us to survive has
been what we call institution business; that is
special designs for churches, schools; companies
with their logos on it. There are also special
designs for marriages, funerals and other
celebrations; and that business is very difficult
for someone in China or in Asia to get into it,
because often the people want the goods on a short
notice so it’s easier for them to order it
locally. So these strategies and the activities of
the taskforce are all helping us to survive; it is
still a struggle but our intention is to stay in
the game and to be around for so many years” he
added. Impact of taskforce Mr. Dutton believes the
existence of the Taskforce on the Seizure and
Disposal of Pirated Ghanaian Textile Designs
(TSDPGTD), is timely since it is helping to rescue
the local textile industry from total collapse.
“It’s good for the textile industry because it
sends out the correct message to people. People
are also reminded to patronize the local
industries. We are not saying foreign goods should
be banned; but those goods have to come through
the country legally and the right taxes paid. I
will say that the taskforce has been important and
we are also doing the best we can to protect our
intellectual property rights”. He however noted
that it is bit difficult to measure the impact of
the taskforce since there are no official figures
on the smuggled and pirated imported products.
Even so, he commended the work of the taskforce
and expressed optimism that their work will
continue. “It’s a bit difficult to measure the
impact of the taskforce because we have no real
figures on the smuggled goods coming in. But what
I can say is that, the fact that ATL and other
manufacturers are still operating today although
we are all struggling, is because of the
activities of the taskforce. If the taskforce was
not there, I doubt very much whether we would have
been able to continue because it would have been
free for all in the market. So, we really need
this taskforce to continue with its activities. I
believe that gradually we are deterring traders
from trading in these pirated goods because they
also don’t want to lose their working capital.
So I think that if we can carry on with this,
eventually there will be a very significant
difference in the market; and hopefully the work
of the taskforce will give the local textile
factories the chance to take up some of the lost
market share” he added.

Source - Citifmonline

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