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Brighton Gumbo, Business Reporter
BULAWAYO-BASED clothing concern, Archer Clothing Manufacturers is targeting to expand its operations in the first half of next year after committing $3.5 million for the expansion programme.
Paramount group financial director Jeremy Youmans said the recently launched leather factory has now started production of leather gloves which will be sold as part of the company stock range.
Archer Clothing opened a leather products manufacturing factory in November last year as part of its diversification strategy aimed at expanding its businesses.
Previously, it opened a retail outlet next to its factory last August as part of its efforts to avail its products to the public at competitive prices.
“We’ll extend the product range to aprons and leather jackets in the first half of next year,” said Youmans.
He said the clothing firm is operating at 70 percent capacity.
Creditors of Archer Clothing approved its take-over by Harare-based Paramount Garments early last year, saving it from liquidation.
Take-over negotiations between the two companies started in 2013 after they initially entered into a cut-make-and- trim deal.
Under the deal the Harare company supplied clothing material and labour while Archer provided the working space.
The company exports its products mainly to Kenya and Gabon.
It also exports to Germany where one of its customers distributes its goods to the United Kingdom.
Youmans said there was a need for the government to expedite the process of designating Bulawayo a Special Economic Zone (SEZ).
Bulawayo has been identified as a SEZ for clothing and leather sectors.
“Obviously as a sector we’ve been working hard to restructure ourselves and drive the industry forward, so we’re well placed to take on the adaptation to an SEZ.
“The industry has huge potential for value addition and employment,” he said.
Youmans also said creation of a SEZ in Bulawayo would improve competitiveness and growth in the clothing and textile sector.
“On the basis that the SEZ status will affect competitiveness positively, we expect it to speed up and improve the recovery and future growth of the sector,” he said.
The clothing industry has over the past years been rocked by a wave of company closures and retrenchments, situation trade unions in the sector blame on economic challenges facing the country.
According to statistics, the textiles sector shed 9,000 jobs in 2013 to about 2,000 compared to 11,500 in 2000 while the clothing industry cut about 3,000 to 5,000.
The move resulted in about 20,000 losing jobs in Bulawayo.
Exports to other countries have also declined while local consumers are now depending largely on imports.
The influx of cheap imports as well as second-hand clothes, have also negatively impacted the local clothing manufacturing industry, thereby undermining its performance.
At its peak, the textile sector used to produce about 135 million garments annually compared to the 18.7 million garments it is producing now.
The industry used to employ 35,000 workers, compared to 7,000 employed now.
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