Durban - A R150 million funding package has been approved for one of the country's largest towel manufacturers. Glodina, which is based in Hammarsdale on the outer west of Durban had slowed down on operations due to financial constraints with hundreds of employees facing retrenchment.
On Tuesday, MEC for Economic Development, Tourism and Environmental Affairs, Sihle Zikalala and IDC chief executive officer, Geoffrey Qhena, officially opened the plant.
Zikalala said local government intervened to avoid the devastating effects of the manufacturer’s closure and the impact it would have on the region.
“We had extensive engagements with the management and shareholders of Glodina to understand the nature of the challenge, and working together, we devised mitigation strategies,” he added.
As part of the intervention, a multi-stakeholder task team comprising the Department of Economic Development, Tourism and Environmental Affairs, Trade and Investment KwaZulu-Natal, IDC, and the South African Clothing and Textile Workers Union was established.
“The department played a key role in linking potential investors with Development Finance Institutions such as IDC and KZN Growth Fund, added Zikalala.
He said they were humbled by the swift handling of the matter by Minister of Economic Development, Ebrahim Patel and the IDC.
This is, indeed, how the developmental state should respond to the pressing economic needs of the communities on whose behalf it exists,” Zikalala said.
The R150m funding package was approved to acquire the assets from the previous owner, a move that resulted in the factory resuming its operations.
The new entity had committed itself to the retention of more than 211 jobs of the 500 jobs lost when the company closed down.
“We have no doubt that the number of jobs will increase exponentially as the company gradually regains its previous customers.”
Gugu Mlotshwa, one of the employees who have been retained, expressed relief after she was informed that she would not lose her job.