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    The Textile Industry in South Africa 2023

    Michael Felton | South Africa | 26 June 2023

    The Textile Industry in South Africa 2022

    Gary Phillips | South Africa | 27 March 2022

    The Textile Industry in South Africa 2020

    Duncan Bekker | South Africa | 30 November 2020

    The Textile Industry in South Africa 2018

    Duncan Bekker | South Africa | 09 May 2018

    The Textile Industry in South Africa 2015

    Kim Imrie | South Africa | 21 September 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report covers the industrial activities relating to the preparation of wool and cotton fibres, the spinning of these into yarn and the weaving of yarns into fabrics for use in downstream clothing. It includes comprehensive information on the state and size of the sector, production and sales data, volumes and capacity utilisation, key trends and notable players. There are profiles of 22 companies including textile mills such as Standerton and Helm and manufacturers such as The Good Hope Textile Corporation (Da Gama Textiles), Samil Natural Fibres Gelvenor Africa, Ninian and Lester and Glodina Towelling.

    Introduction

    • This report covers the preparation of wool and cotton fibres, their spinning into yarn and weaving yarns into fabrics for use in clothing, textiles, footwear and leather manufacturing.\r\n
    • The clothing, textiles, footwear and leather masterplan, implemented in 2019, has led to some recovery and improvement including a steady increase in employment and growth in production and revenue. \r\n
    • Change is underpinned by strong wool production and revitalised cotton production.\r\n
    • Stakeholders say the masterplan presents opportunities, but there is a long road ahead before substantial progress is evident in an industry which is a fraction of what it once was. \r\n
    • Higher revenue and production volumes in the past two years, last seen a decade ago, point to the resumption of growth.

    Strengths

    • High quality production of agricultural raw materials.
    • Industrial cluster initiatives and co-operation between producers, manufacturers, and retailers.
    • Significant local demand for textiles and clothing.
    • Substantial and ongoing government support, including direct manufacturing grants and incentives and import tariffs, most recently seen in the provisions of the masterplan.
    • While textile manufacturing capacity is low, the local industry is supported by a strong agricultural sector and a well-established wholesale and retail sector.

    Weaknesses

    • Capacity underutilisation.
    • Dependence on imports beneficiated outside the country and vulnerability to the volatile exchange rate.
    • Dependence on imports undermines local design and manufacturing flexibility and increases product lead and delivery times.
    • Despite high levels of state support and trade protection, manufacturing remains uncompetitive relative to cheap Asian imports.
    • High levels of illegal and under-declared imports and historical ineffectiveness of regulatory enforcement.
    • Loss of skills and institutional memory in textile manufacturing; general shortage of skills.
    • Manufacturers are behind in technological advances and lack specialisation.
    • New machinery is and expensive and structural and local economy constraints, limit implementation of new technology and sustainability methods.
    • Selling price of raw materials exported largely dictated by other larger global markets and not related to the cost of production.
    • Severe shortage of local beneficiation and upstream manufacturing capacity.
    • The market is heavily dominated by large local retailers and focus on domestic market has limited growth prospects.

    Opportunities

    • Co-operation between industry players to research best practices, share learning and introduce lean manufacturing principles.
    • Government support through the Clothing, Textiles, Footwear and Leather Growth Programme.
    • Long term growth in regional African demand and the African Continental Free Trade Area agreement.
    • Quick response business models by retailers may allow local manufacturers to secure a comparative advantage relative to importers.
    • Rising ecommerce penetration of retail and ongoing technological disruption and increasing efficiency of manufacturing.
    • Shift towards sustainability and labour and industry standards; adoption of technology and investment in new machinery and digitalisation.
    • The industry remains key to the overall growth of the manufacturing sector and the potential for growth of small producers and traders.
    • Very strong focus on growing local demand and procurement through the clusters and sector masterplan. The majority of large retailers have committed to increasing their local sourcing.

    Threats

    • Domestic textile companies may not invest sufficiently to take up the opportunity offered by masterplan provisions amid disruptions to global supply chains.
    • Increasing competition from international retailers.
    • Increasing pressure on state finances may result in smaller budgets for government support programmes.
    • Long term negative consequences of supply chain disruption.
    • Ongoing cheap and illegal imports, customs fraud, and under-invoicing.
    • Susceptibility to volatile foreign exchange rates, a weakening economy, high inflation and rising interest rates, natural disasters such as flooding and drought and unpredictable weather patterns, and unpredictability and disruptive nature of loadshedding.
    • The industry is not growing in key areas including production, sales, employment, and productivity.

    Outlook

    • The clothing and textile manufacturing sector holds significant employment potential as it is labour-intensive, resulting in government identifying it as a priority industrial development sector. \r\n
    • Manufacturers are taking advantage of providing quick response solutions and supply flexibility. \r\n
    • Government support has seen the recapitalisation of some local manufacturers, stabilisation and some employment growth. \r\n
    • The weaker rand, disruption of global supply chains, quick response trends and localisation efforts have resulted in retailers using more local manufacturers, and created opportunities for them to increase production and pursue exports. \r\n
    • Clothing manufacturers are collaborating with design houses and retailers to increase local supply, and this is expected to filter through to fabric and yarn suppliers. \r\n
    • The challenges remain immense, and there is no guarantee that the textile industry, which only uses two-thirds of capacity because of insufficient demand, will be able to fully take up the opportunity.

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 5
    2.2. Geographic Position 8
    2.3. Size of the Industry 10
    3. LOCAL 25
    3.1. State of the Industry 25
    3.2. Key Trends 27
    3.3. Key Issues 28
    3.4. Notable Players 29
    3.5. Trade 32
    3.6. Corporate Actions 35
    3.7. Regulations 36
    3.8. Enterprise Development and Social Development 38
    4. AFRICA 41
    5. INTERNATIONAL 48
    6. INFLUENCING FACTORS 54
    6.1. Unforeseen Events 54
    6.2. Economic Environment 55
    6.3. Labour 57
    6.4. Crime 61
    6.5. Infrastructure 61
    6.6. Environmental Issues 62
    6.7. Technology, R&D, Innovation 65
    6.8. Government Support and Initiatives 66
    6.9. Input Costs 68
    7. COMPETITIVE ENVIRONMENT 70
    7.1. Competition 70
    7.2. Ownership Structure of the Industry 72
    7.3. Barriers to Entry 72
    8. SWOT ANALYSIS 73
    9. OUTLOOK 74
    10. INDUSTRY ASSOCIATIONS 76
    11. REFERENCES 77
    11.1. Publications 77
    11.2. Websites 79
    APPENDICES 81
    Appendix 1 - Summary of Notable Players 81
    Appendix 2 – Textile Industry Import Tariffs, 2022 86
    COMPANY PROFILES 92
    Aranda Textile Mills (Pty) Ltd 92
    Beier Group (Pty) Ltd 94
    Colibri Towelling Western Cape (Pty) Ltd 96
    DesleeMattex (Pty) Ltd 98
    Gelvenor Africa (Pty) Ltd 100
    Glodina Towelling (Pty) Ltd 102
    Good Hope Textile Corporation (Pty) Ltd (The) 104
    Helm Textile Mills (Pty) Ltd 106
    Ivili Loboya (Pty) Ltd 108
    J M V Textiles (Pty) Ltd 110
    Multiknit (Pty) Ltd 111
    Ninian and Lester (Pty) Ltd 113
    Old Nick Fabrics (Pty) Ltd 115
    Prilla 2000 (Pty) Ltd 117
    Rotex Fabrics (Pty) Ltd 119
    Samil Natural Fibres (Pty) Ltd 121
    Sesli Textiles (Pty) Ltd 123
    Standerton Mills (Pty) Ltd 125
    Stucken and Company (Pty) Ltd 127
    Svenmill (Pty) Ltd 129
    Yarntex (Pty) Ltd 131
    Yellowwood Trading 22 (Pty) Ltd 133

    Report Coverage

    This report covers the industrial activities relating to the preparation of wool and cotton fibres, the spinning of these into yarn and the weaving of yarns into fabrics for use in downstream clothing, textiles, footwear and leather manufacturing. It includes information on the state and size of the industry, imports and exports, developments, regulations and factors and issues that influence the sector. There are profiles of 14 companies including Standerton Mills and Svenmill, Gelvenor Africa, Yarntex and Samil Natural Fibres.

    Introduction

    This report covers the industrial activities relating to the preparation of wool and cotton fibres, the spinning of these into yarn and the weaving of yarns into fabrics for use in downstream clothing, textiles, footwear and leather (CTFL) manufacturing. The textile industry has been in long term decline since 1994 as a result of trade liberalisation, the rapid increase in cheap Asian imports, and declining competitiveness and manufacturing capacity of local players. The result has been the deindustrialisation of the textiles component of the value chain and a situation in South Africa where the vast majority of animal and vegetable fibres are exported and the majority of spun yarn and woven textile articles consumed by the downstream CTFL manufacturers are imported.\r\n\r\nThe decline of the textiles industry has created a policy dilemma – does South Africa provide import protection to the textile industry and in doing so, reduce competitiveness of clothing manufacturers, or does it allow for rebated textile imports by clothing manufacturers to advance their price competitiveness and facilitate further deindustrialisation of the local textile supply? This policy dilemma has lasted decades but may be resolved in the Retail-CTFL (clothing, textile, footwear and leather) masterplan (R-CTFL masterplan), implemented in 2019. Mechanisms in the masterplan aim to reduce input costs for clothing manufacturers while securing supply agreements for local textile manufacturers. In addition, the plan commits government and industry to textile industry development and commits retailers to target 65% domestic procurement. Widespread buy-in to the masterplan has brought a much-needed boost to the industry and some analysts have said that it is moving from being a “sunset” industry to a “sunrise” industry. \r\n\r\nUnderpinned by strong wool production and revitalised cotton production, the industry is beginning to change. Industry stakeholders say the masterplan presents opportunities, but there is a long road ahead before substantial progress is evident. Two years into implementation, the impact of the masterplan’s industry development mechanisms are yet to be fully measured in an industry which is a fraction of what it once was. Higher revenue and production volumes in the past year, last seen a decade ago, point to the resumption of growth.

    Strengths

    • Industrial cluster initiatives have had recent success in creating relatively integrated supply chains, with substantial co-operation between producers, manufacturers, and retailers.
    • Significant local demand for textiles and clothing (although most is currently met by imports).
    • Substantial and ongoing government support, including direct manufacturing grants and incentives and import tariffs, most recently seen in the provisions of the clothing, textiles, footwear and leather masterplan.
    • While textile manufacturing capacity is low, the local industry is supported by a strong agricultural sector and a well-established wholesale and retail trade sector.

    Weaknesses

    • Dependence on imports undermines local design and manufacturing flexibility and increases product lead- and delivery times.
    • Despite high levels of state support and trade protection, South African manufacturing remains uncompetitive relative to cheap Asian imports.
    • High levels of illegal imports and historical ineffectiveness of regulatory enforcement.
    • Loss of skills and institutional memory in textile manufacturing; general shortage of skills.
    • Severe shortage of local beneficiation and upstream manufacturing capacity; the majority of the country’s established textile mills closed over the past decades.
    • Very dependent on imports of fibres beneficiated outside the country, and of basic textiles, yarn and fabric, and of finished textile products.

    Opportunities

    • Long term growth in regional African demand and the recent signing of the African Continental Free Trade Area agreement.
    • Pandemic presents opportunity to increase local procurement, particularly of fabric, medical textiles, and personal protective equipment as imports are relatively more expensive due to rand weakness and global supply chain disruptions.
    • Quick response business models by retailers may allow local manufacturers to secure a comparative advantage relative to importers.
    • Renewed government support through the new Clothing, Textiles, Footwear and Leather Growth Programme
    • Rising ecommerce penetration of retail and ongoing technological disruption and increasing efficiency of manufacturing.
    • Very strong focus on growing local demand and procurement through the clusters and sector masterplan; the majority of large retailers have committed to increasing their local sourcing.

    Threats

    • Constrained by years of low returns, domestic textile companies may not invest sufficiently to take up the opportunity offered by masterplan provisions amid disruptions to global supply chains.
    • Increasing pressure on state finances may result in smaller budgets for government support programmes.
    • Industry stagnation; a number of economists maintain that, despite government support, the industry is not growing in key areas including production, sales, employment, and productivity.
    • Long term negative consequences of pandemic on economic environment and prospects.
    • Ongoing illegal imports, customs fraud, and under-invoicing.

    Outlook

    The textiles industry has been subject to a negative outlook for nearly three decades as imports have replaced local supply and effectively deindustrialised the textile industry part of the clothing, textile, footwear and leather manufacturing value chain. The industry has found a way to function under tough market conditions for the past decade, and two recent events have provided the domestic industry with an opportunity to change its outlook. The first is the signing and implementation of the retail clothing, textile, footwear and leather masterplan, particularly its provisions for local procurement and import tariff rebate which tackles reducing clothing industry prices while increasing textile development. The second is the disruption of global supply chains which has made imports more expensive and caused longer lead times. These events, together with the growing retail-led trend towards quick response manufacturing, have provided the textile industry with an opportunity to increase local production.\r\n\r\nThe opportunity has been taken up by clothing manufacturers as they collaborate with design houses and retailers to increase local supply, and is expected to filter through to fabric and yarn suppliers. The challenges remain immense, and there is no automatic guarantee that the textile industry, which on average only uses two-thirds of its current capacity because of insufficient demand, will be able to fully take up the opportunity. However, for the first time in a long time, the outlook on the industry has improved.

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    The Textile Industry in South Africa 2022

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    R 4 550.00(ZAR) estimated $ 251.59 (USD)*

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    Historical Reports

    The Textile Industry in South Africa 2023-06-26

    R 9 500.00(ZAR) estimated $525.29 (USD)*

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    The Textile Industry in South Africa 2020-11-30

    R 1 900.00(ZAR) estimated $105.06 (USD)*

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    The Textile Industry in South Africa 2018-05-09

    R 1 900.00(ZAR) estimated $105.06 (USD)*

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    The Textile Industry in South Africa 2015-09-21

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 5
    2.3. Size of the Industry 7
    2.4. Key Success Factors and Pain Points 18
    3. LOCAL 18
    3.1. Key Trends 18
    3.2. Notable Players 19
    3.3. Trade 21
    3.4. Corporate Actions 33
    3.5. Regulations 33
    3.6. Enterprise Development and Social Economic Development 34
    4. AFRICA 36
    5. INTERNATIONAL 37
    6. INFLUENCING FACTORS 39
    6.1. COVID -19 39
    6.2. Economic Environment 39
    6.3. Labour 40
    6.4. Environmental Issues 42
    6.5. Technology, Research and Development (R&D) and Innovation 44
    6.6. Government Support 45
    6.7. Input Costs 50
    7. COMPETITIVE ENVIRONMENT 51
    7.1. Competition 51
    7.2. Ownership Structure of the Industry 52
    7.3. Barriers to Entry 52
    8. SWOT ANALYSIS 53
    9. OUTLOOK 54
    10. INDUSTRY ASSOCIATIONS 55
    11. REFERENCES 59
    11.1. Publications 59
    11.2. Websites 60
    APPENDICES 62
    Appendix 1 - Summary of Notable Players 62
    COMPANY PROFILES 65
    Gelvenor Africa (Pty) Ltd 65
    Glodina Towelling (Pty) Ltd 67
    Good Hope Textile Corporation (Pty) Ltd (The) 69
    Ivili Loboya (Pty) Ltd 71
    Ninian And Lester (Pty) Ltd 73
    Old Nick Fabrics (Pty) Ltd 75
    Prilla 2000 (Pty) Ltd 77
    Rotex Fabrics (Pty) Ltd 79
    Samil Natural Fibres (Pty) Ltd 81
    Sesli Textiles (Pty) Ltd 83
    Standerton Mills (Pty) Ltd 85
    Stucken And Company (Pty) Ltd 87
    Svenmill (Pty) Ltd 89
    Yarntex (Pty) Ltd 91

    Report Coverage

    This report examines the South African textile industry, from the manufacture and distribution of basic textiles, yarns, and fabrics, to the large retail market for finished textile products like towels and linen. It includes comprehensive information on the state and size of the sector, demand, sales trade and employment statistics, sector trends, corporate actions and major developments. There are profiles of 23 companies including manufacturers such as Standerton Mills and Aranda Textile Mills, Associate Spinners and The Good Hope Textile Corporation (Da Gama).

    Introduction

    This report examines the South African textile industry, from the manufacture and distribution of basic textiles, yarns, and fabrics, to the large retail market for finished textile products like towels and linen. Retail trade sales of textiles have continued to expand although the country’s protracted struggle with low economic growth and falling incomes, recently exacerbated by the coronavirus outbreak and national lockdown, have pressured consumer spending. On the manufacturing front, production and employment have stagnated and many producers are uncompetitive relative to the cheap Asian imports that dominate the market. Nevertheless, there have been some important recent successes, such as the revitalisation of the cotton sub-sector. Due to their labour-intensive nature, textiles and apparel have long been identified as a strategic priority for South Africa’s industrial policy and support programmes. The industry master plan, released at the end of 2019, aims to buoy local textile procurement by working closely with leading retailers, to combat the high levels of illegal imports, and incentivise new investment into domestic manufacturing capacity.

    Strengths

    • Industrial cluster initiatives have had recent success in creating relatively integrated supply chains, with substantial co-operation between producers, manufacturers, and retailers.
    • Significant local demand for textiles and clothing, although most is currently met by imports.
    • Substantial and ongoing government support, including direct manufacturing grants and incentives and import tariffs.
    • While textile manufacturing capacity is low, the local industry is supported by a growing supply of raw materials and a well-established wholesale and retail trade sector.

    Weaknesses

    • Dependence on imports undermines local design and manufacturing flexibility and increases product lead- and delivery times.
    • Despite high levels of state support and trade protection, South African manufacturing remains uncompetitive relative to cheap Asian imports.
    • High levels of illegal imports and historical ineffectiveness of regulatory enforcement.
    • Loss of skills and institutional memory in textile manufacturing; general shortage of skills.
    • Severe shortage of local beneficiation and upstream manufacturing capacity; the majority of the country’s established textile mills closed over the past decades.
    • Very dependent on imports of fibres beneficiated outside the country, and of basic textiles, yarn and fabric, and of finished textile products.

    Opportunities

    • Coronavirus outbreak and lockdowns present possible opportunity to increase local procurement, particularly of fabric, medical textiles, and personal protective equipment; imports are relatively more expansive thanks to the rand’s weakness and some stakeholders identify supply chain disruption and a growing mistrust of China as presenting further opportunities to on-shore textile production.
    • Long term growth in regional African demand and the recent signing of the African Continental Free Trade Area agreement.
    • Quick response and fast fashion business models at retailers may allow local manufacturers to secure a comparative advantage relative to importers who have less direct control over design and have to contend with long lead- and delivery times.
    • Recent extension, for at least three years, of government support through the Clothing and Textile Competitiveness Programme.
    • Rising ecommerce penetration of retail and ongoing technological disruption and increasing efficiency of manufacturing.
    • Very strong focus on growing local demand and procurement through the clusters and recently published sector master plan; the majority of large retailers have committed to increasing their local sourcing.

    Threats

    • Cash-strapped retailers and other customers may seek to buy only the cheapest textiles and textile products, driving imports rather than local procurement.
    • Increasing pressure on state finances may result in smaller budgets for government support programmes.
    • Long term consequences of pandemic and lockdown on economic growth, employment, investment, and consumer spending.
    • Ongoing illegal imports, customs fraud, and under-invoicing.
    • Ongoing industry stagnation; a number of economists maintain that, despite the high levels of government support, the industry is not growing in key areas including production, sales, employment, and productivity.

    Outlook

    The textile sector has achieved a number of successes in recent years, including the revitalisation of the local cotton industry, incentivising new manufacturing investment, and growing local demand for textiles thanks to closer co-operation with retailers. The recently-published master plan for the sector, signed by a number of key retailers and suppliers, aims to build on these successes to greatly increase local textile procurement, decisively deal with illegal imports and under-invoicing, continue to support manufacturing investment, and leverage the potential advantages of local textile production in supporting emerging retail business models like quick response and fast fashion. Industry analysts hope that these interventions could increase the retail market share of local clothing and textiles from around 44% to over 65% by 2030, increasing local turnover by tens of billions of rands, and creating over 100,000 new jobs.\r\n\r\nHowever other stakeholders warn that, despite some recent successes and ongoing government support, the industry remains stagnant and largely uncompetitive relative to cheap importing nations. David Kaplan of the UCT school of economics said that “there has been a vast gap between the stated policy objectives and actual performance” in the industry. Key metrics like physical production volumes, manufacturing sales, and employment have stagnated or declined, and some economists are critical of the feasibility of building the sector’s recovery on “recapturing the domestic market,” rather than the labour-intensive, relatively low wage, export-led growth that has been the model for textile and clothing producers in Asia.\r\n\r\nThe coronavirus outbreak and economic lockdown has had an immediate effect on both production and retail sales of textiles. There is a great deal of uncertainty as to the longer term effects of the pandemic and lockdown and many stakeholders are concerned that a severe economic contraction and job losses could deepen many of the structural challenges facing manufacturers and the wider retail sector.

    Read More..
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    The Textile Industry in South Africa 2020

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    R 1 330.00(ZAR) estimated $ 73.54 (USD)*

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    Historical Reports

    The Textile Industry in South Africa 2023-06-26

    R 9 500.00(ZAR) estimated $525.29 (USD)*

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    The Textile Industry in South Africa 2022-03-27

    R 6 500.00(ZAR) estimated $359.41 (USD)*

    View Report Add to Cart

    The Textile Industry in South Africa 2018-05-09

    R 1 900.00(ZAR) estimated $105.06 (USD)*

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    The Textile Industry in South Africa 2015-09-21

    R 1 900.00(ZAR) estimated $105.06 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 7
    4. STATE OF THE INDUSTRY 10
    4.1. Local 10
    4.1.1. Trade 19
    4.1.2. Corporate Actions 22
    4.1.3. Regulations 23
    4.1.4. Enterprise Development and Social Economic Development 26
    4.2. Continental 27
    4.3. International 30
    5. INFLUENCING FACTORS 32
    5.1. Coronavirus 32
    5.2. Economic Environment 36
    5.3. Rising Input Costs 37
    5.4. Technology, Research and Development (R&D) and Innovation 38
    5.5. Government Incentives and Support 39
    5.6. Environmental Concerns 40
    5.7. Labour 41
    6. COMPETITION 44
    6.1. Barriers to Entry 46
    7. SWOT ANALYSIS 47
    8. OUTLOOK 48
    9. INDUSTRY ASSOCIATIONS 49
    10. REFERENCES 50
    10.1. Publications 50
    10.2. Websites 50
    APPENDIX 1 52
    Summary of Notable players 52
    APPENDIX 2 56
    Textile Demand for Key Products by Market and Customer, 2015 56
    APPENDIX 3 59
    Textile Buyers, Agents, Importers, and Wholesalers 59
    COMPANY PROFILES 62
    AHLESA BLANKETS (PTY) LTD 62
    ARANDA TEXTILE MILLS (PTY) LTD 64
    ASSOCIATED SPINNERS (PTY) LTD 66
    BEIER ENVIROTEC (PTY) LTD 67
    DESLEEMATTEX (PTY) LTD 69
    GELVENOR CONSOLIDATED FABRICS (PTY) LTD 71
    GLODINA TOWELLING (PTY) LTD 73
    GOOD HOPE TEXTILE CORPORATION (PTY) LTD (THE) 75
    HOUSE OF HEMP (PTY) LTD 77
    INTEGRATED POLYPROPYLENE PRODUCTS (PTY) LTD 79
    IVILI LOBOYA (PTY) LTD 81
    NINIAN AND LESTER (PTY) LTD 82
    OLD NICK FABRICS (PTY) LTD 84
    PRILLA 2000 (PTY) LTD 86
    RESOURCE LINK COATINGS (PTY) LTD 88
    ROTEX FABRICS (PTY) LTD 89
    SAMIL NATURAL FIBRES (PTY) LTD 91
    SESLI TEXTILES (PTY) LTD 93
    SOUTH AFRICAN POLYPROPYLENE YARNS (PTY) LTD 95
    STANDERTON MILLS (PTY) LTD 97
    STUCKEN AND COMPANY (PTY) LTD 99
    SVENMILL (PTY) LTD 101
    YARNTEX (PTY) LTD 104

    Report Coverage

    The Manufacture of Textiles examines the South African textile industry with an emphasis on the manufacture of home and lifestyle textiles and other finished textile products. Market structure and demand, current conditions and factors influencing the sector’s success are covered in this detailed report. The report profiles 18 industry players, including Gelvenor Textiles which was acquired by South African private equity firm Jacobs Capital for an estimated R285m during 2016. The acquisition brought a further merger as MB Workwear, acquired the previous year, became a division of Gelvenor Consolidated Fabrics.

    Introduction

    This report examines the South African textile industry with an emphasis on the manufacture of home and lifestyle textiles and other finished textile products. Sales of manufactured textiles were worth around R25bn in 2017, with finished textile products accounting for some R14bn. Although seeing a marginal improvement in the textile trade balance, the South African sector, which employs more than 31,000 people, continues to be reliant on the export market while imports, particularly from China, remain a matter of concern. A great deal of government activity and support focuses on improving industry competitiveness while other interventions focus on buoying local demand and creating efficiencies throughout the value chain from supplier to retailer.

    Strengths

    • African exports and a growing textile retailer footprint in Africa.
    • Significant local demand.
    • Textile clusters are active and have robust links throughout the value chain.
    • The sector receives substantial and ongoing government support and funding.

    Weaknesses

    • High labour and electricity costs.
    • Highly influenced by cheap imports.
    • Lack of flexibility and lead times that are too long.
    • Lack of local beneficiation of many raw textile inputs.
    • Lacklustre enforcement of procurement and illegal import regulations.
    • Misalignment between customers, primarily retailers, and the suppliers in the industry.
    • Trade deficit entails a susceptibility to the exchange rate.

    Opportunities

    • Cluster initiatives creating stable market for manufacturers through supplier-retailer links.
    • Clusters also increasing efficiencies and cutting costs through best practice management.
    • Continuing demand for “consumer basics” such as home and lifestyle textiles, particularly cotton.
    • Excess capacity to capitalise on potential demand.
    • Growing middle class in Africa which will mean increased exports to Africa.
    • Localisation to win back market share from imports.
    • Quick response (QR) model at retailers and an increase in local sourcing.

    Threats

    • Continuing import substitution.
    • Continuing slow economic growth, depressed consumer spending and poor retail performance.
    • Illegal imports.
    • Lack of skills.
    • Rising input costs, particularly labour and electricity.
    • Rumoured possibility of losing AGOA membership.

    Outlook

    Although manufacturing sales growth slowed in 2016 and 2017, overall performance has been positive and employment has begun to expand. While noting that the industry requires further support, Ebrahim Patel, Minister of Economic Development, stated in 2017 that the industry is stabilising. The major focus for the industry is currently improving textile competitiveness against imports and creating an integrated and efficient supply chain in the domestic market. Support programmes have been heralded by the DTI as a success with the clusters reporting annual improvements in manufacturing performance and competitiveness metrics. As of 2017 imports have begun to decline and exports to grow, albeit slowly\r\n\r\nSASTAC suggests that local economic stability is “one of the greatest challenges facing the industry” and notes, “The re-establishment of long-term, strategic partnerships between buyers and suppliers will be crucial to transforming the industry.” The textile clusters have reported successes in developing closer links between suppliers and retailers. In addition, the KwaZulu-Natal cluster hopes that retailers\' shifting preference towards a Quick Response (QR) model will “stabilise the supply chain”, providing a constant source of demand for local manufacturers. While marginally increased economic growth and consumer confidence are positive signs, SASTAC notes that the “turnaround of the local industry will be dependent on the development of a robust strategy, supported by all stakeholders, including government and the union … it will take time and commitment from both sides to do this.”

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 12
    4.1. Local 12
    4.1.1. Corporate Actions 23
    4.1.2. Regulations 23
    4.1.3. Enterprise Development and Social Economic Development 25
    4.2. Continental 25
    4.3. International 28
    5. INFLUENCING FACTORS 30
    5.1. Demand Drivers 30
    5.2. Economic Environment 30
    5.3. Relationship between Retailers and Suppliers 32
    5.4. Quick Response Model 33
    5.5. Availability of Raw Materials 34
    5.6. Rising Operating Costs 37
    5.7. Government Support 38
    5.8. Labour 39
    5.9. Cyclicality 41
    5.10. Sustainability and Environmental Concerns 42
    5.11. Technology, Research and Development (R&D) and Innovation 42
    6. COMPETITION 44
    6.1. Barriers to Entry 46
    7. SWOT ANALYSIS 46
    8. OUTLOOK 47
    9. INDUSTRY ASSOCIATIONS 48
    10. REFERENCES 48
    10.1. Publications 48
    10.2. Websites 49
    COMPANY PROFILES 51
    ARANDA TEXTILE MILLS (PTY) LTD 51
    ASSOCIATED SPINNERS (PTY) LTD 54
    COLIBRI TOWELLING WESTERN CAPE (PTY) LTD 55
    GELVENOR CONSOLIDATED FABRICS (PTY) LTD 57
    GOOD HOPE TEXTILE CORPORATION (PTY) LTD (THE) 59
    HOUSE OF HEMP (PTY) LTD 61
    IVILI LOBOYA (PTY) LTD 63
    KAP HOMEWARE (PTY) LTD 64
    NINIAN AND LESTER (PTY) LTD 66
    PRILLA 2000 (PTY) LTD 68
    ROTEX FABRICS (PTY) LTD 70
    SAMIL NATURAL FIBRES (PTY) LTD 72
    SOUTH AFRICAN POLYPROPYLENE YARNS (PTY) LTD 74
    STANDERTON MILLS (PTY) LTD 76
    STUCKEN AND COMPANY (PTY) LTD 78
    SVENMILL (PTY) LTD 80
    YARNTEX (PTY) LTD 83
    ZORBATEX (PTY) LTD 85

    Report Coverage

    The Manufacture of Textiles evaluates the domestic industry, government attempts to stimulate local manufacture and factors influencing the sector’s success. The report also profiles 25 industry players, including Ninian & Laster (Pty) Ltd, which manufactures underwear, active wear and circular knitted products and supplies all major retail chains, as well as small retail outlets.

    Introduction

    This report focuses on the status quo of a vastly reduced local textile industry and efforts by the government to reinvigorate the sector where approximately 80% of all textile inputs are imported. According to Statistics South Africa (Stats SA), the value of sales of textile and other textile products for 2014 was R18.6bn, up from R16.2bn in 2013. Compared to the previous decade when the sector lost at least 40,000 jobs, employment has increased by 1.5% to 29,626 employees. These figures indicate that the concerted efforts of government, industry and labour are gradually paying off with pockets of stabilisation and increased competitiveness emerging. Since 2013 there has been a drive for a more thorough understanding of the industry and currently a ground-breaking study is being conducted using the Harmonised Commodity Description Coding System (HS) to provide a detailed analysis on the capability of the industry.

    Strengths

    • A new industry body to provide one voice to government and to disseminate industry intelligence for a better functioning textile industry.
    • Spare operating capacity and the expansion of lines as a result of investment into production capacity
    • Varied government initiatives to support the industry

    Weaknesses

    • Lack of flexibility, and a shortage of highly skilled labour.
    • Low labour productivity in comparison with global benchmarks.
    • Misalignment between the demand profile of customers of the industry vs the supply profile of the industry.
    • Outdated equipment and processes.
    • Slow turnaround times and poor quality in some factories.

    Opportunities

    • For factories to improve processes and efficiency via the support provided by CCTC and KZN clusters.
    • Growing demand for basic apparel and home textiles.
    • Implementation of quick response model by retailers is likely to help textile companies.
    • Implementation of some of the C6 Industry Audit Findings.
    • Leverage BRIC relationship towards favourable trade agreements with India and China for sub-Saharan African sourcing.
    • Niche markets and international demand for unique crafted items.

    Threats

    • Continuing influx of cheap imported textiles and garments from Asia.
    • Increased influx of under-invoiced and illegal imports.
    • Increased non-compliance to bargaining council agreements leading to different wages being paid.
    • Increasing threat of textiles and garments from Mauritius and competition from increased production in Ethiopia and Kenya, especially if the African Free Trade Area (AFTA) is introduced by 2017.
    • Rising electricity and labour costs.

    Outlook

    Analysts expect the results of the SASTAC audit released in November 2014 to prove useful in ascertaining the capability of the local industry. Although the South African textile industry is practically non-existent and more than 80% of the domestic textile requirement is still imported, there are signs that the upward linkages in the supply chain are strengthening, which could lead to a reinvigorated textile sector. In fact the study found that there are definite pockets of improvement, but a recurring theme remains the lack of a “coherent strategy” for the sector. Economic Development Minister Ebrahim Patel believes that in the long term the local textile and clothing industry can become part of the global supply chain. However, for this to happen the overall industry needs be become more competitive not only on units and price, but with regard to turnaround time and quality. “We have to find the niche markets for the manufacturers and they could be for the domestic market, but they could also be for some of these larger chains, and increasingly our challenge is going to be putting a value proposition to the big international retailers to let them recognise that part of the social responsibility of benefiting from our markets is taking up agreements with local producers. This can only be done if we have an industry that is dynamic and competitive.”

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.54 (USD)*

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    Historical Reports

    The Textile Industry in South Africa 2023-06-26

    R 9 500.00(ZAR) estimated $525.29 (USD)*

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    The Textile Industry in South Africa 2022-03-27

    R 6 500.00(ZAR) estimated $359.41 (USD)*

    View Report Add to Cart

    The Textile Industry in South Africa 2020-11-30

    R 1 900.00(ZAR) estimated $105.06 (USD)*

    View Report Add to Cart

    The Textile Industry in South Africa 2018-05-09

    R 1 900.00(ZAR) estimated $105.06 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 11
    4.1. Local 11
    4.1.1. Industry Initiatives 11
    4.1.2. Illegal Imports 18
    4.1.3. Exports and Imports of Textiles 19
    4.1.4. Corporate Actions 19
    4.1.5. Enterprise Development and Social Economic Development 21
    4.1.6. Regulations and Government Support 21
    4.2. Continental 25
    4.3. International 29
    5. INFLUENCING FACTORS 31
    5.1. Relationship between Retailers and Suppliers 31
    5.2. Rising Input Costs and Economies of Scale 32
    5.3. Interrupted Electricity Supply 33
    5.4. Preferred Global Fibre Demand 33
    5.5. Sustainability and Environmental Concerns 33
    5.6. Labour 34
    5.7. Economic Environment 36
    5.8. Government Intervention 37
    5.9. Availability of Raw Materials and Lack of Beneficiation 38
    5.10. Technology and Information Technology 40
    6. COMPETITION 41
    6.1. Barriers to Entry 42
    6.2. Research and Development (R&D) and Innovation 42
    7. SWOT ANALYSIS 44
    8. OUTLOOK 45
    9. INDUSTRY ASSOCIATIONS 45
    10. REFERENCES 46
    10.1. Publications 46
    10.2. Websites 47
    APPENDIX 1 48
    Historical Summary of the Industry 48
    COMPANY PROFILES 50
    ALNET (PTY) LTD 50
    ARANDA TEXTILE MILLS (PTY) LTD 52
    ASSOCIATED SPINNERS (PTY) LTD 55
    BELGOTEX FLOORCOVERINGS (PTY) LTD 56
    COLIBRI TOWELLING WESTERN CAPE (PTY) LTD 58
    CORALLINE INVESTMENTS (PTY) LTD 60
    GELVENOR CONSOLIDATED FABRICS (PTY) LTD 62
    GOOD HOPE TEXTILE CORPORATION (PTY) LTD (THE) 64
    HOUSE OF HEMP (PTY) LTD 66
    KAP HOMEWARE (PTY) LTD 67
    NETTEX (PTY) LTD 69
    NINIAN AND LESTER (PTY) LTD 70
    PRES LES (PTY) LTD 72
    PRILLA 2000 (PTY) LTD 74
    ROTEX FABRICS (PTY) LTD 76
    SAMIL NATURAL FIBRES (PTY) LTD 78
    SOUTH AFRICAN POLYPROPYLENE YARNS (PTY) LTD 80
    SPRING ROMANCE PROPERTIES 34 (PTY) LTD 82
    STANDERTON MILLS (PTY) LTD 85
    STUCKEN AND COMPANY (PTY) LTD 87
    SVENMILL (PTY) LTD 89
    YARNTEX (PTY) LTD 91
    ZORBATEX (PTY) LTD 93
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