Government steps in to rescue jobs at Hammersdale industrial area

More than 200 jobs out of the 500 that were lost when a KwaZulu-Natal textile company shut due to cash flow problems have been saved — thanks to a successful intervention by the provincial government.

On Tuesday‚ KZN economic development‚ tourism and environmental affairs MEC Sihle Zikalala and Industrial Development Corporation (IDC) CEO Geoffrey Qhena officially re-opened the plant at Glodina Black Label in Hammersdale near Pietermaritzburg.

The plant was shut down after Glodina‚ which produces quality towels and supplies the hospitality industry and some of SA’s top retailers‚ experienced financial difficulties‚ forcing its holding company‚ Kap Industrial Holdings‚ to dispose of the textile company as it was no longer making profit.

It was at this point that Zikalala intervened in a bid to save jobs in the already struggling Hammersdale industrial area‚ once considered as the textile capital of the province.

Before Glodina’s closure‚ 1‚200 workers had also been laid off by RCL Foods-owned Rainbow Chicken in February last year in a bid to stay afloat after years of fighting cheap imports from the EU‚ Brazil and the US.

Zikalala’s intervention included extensive engagements with other stakeholders in a bid to come up with a turnaround strategy to avoid the devastating effects of the closure of the company on the region’s economy.

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