Who Owns Whom

The Textile Industry in South Africa 2022

Gary Phillips | South Africa | 27 March 2022

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R 13 500.00(ZAR) estimated $ 859.21 (USD)*

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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, 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.

The Textile Industry in South Africa

The textile industry has been in long term decline since 1994 as a result of trade liberalisation, the 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 where the vast majority of fibres are exported and the majority of spun yarn and woven textiles are imported.

Masterplan

The decline of the textiles industry has created a policy dilemma – whether to provide import protection and reduce competitiveness of clothing manufacturers, or allow for rebated textile imports by clothing manufacturers and facilitate further deindustrialisation of the local textile supply. This dilemma may be resolved in the Retail-CTFL (clothing, textile, footwear and leather) masterplan, implemented in 2019. Mechanisms in the plan aim to reduce input costs for clothing manufacturers while securing supply agreements for local textile manufacturers. The plan includes domestic procurement targets.

Quick Response Manufacturing

Quick response manufacturing, driven by retailers and design houses, is placing immense pressure on clothing manufacturers to be flexible and to quickly respond to changes in fashion, style and design. The trend does not put similar pressure on the textile industry, but it does require a more rapid supply of raw materials. Global supply chain disruptions have presented domestic textile manufacturers with a unique opportunity to provide stock more quickly than international suppliers.

Table of Contents

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