A thread of hope for Ramatex

THERE may still be hope for the continued existence in Namibia of the Ramatex textile factory, which is under threat of closure by its Malaysian owners.

It emerged yesterday that foreign businesspeople might be interested in the operations. The Namibian has reliably learned that a German business party toured the factory on Monday and held discussions with Ramatex management.Ramatex Manager BK Ong was said to be in South Africa when contacted about the visit yesterday.The Namibian also understands that business people from Pakistan may visit the factory to discuss the possibility of running the operation, as its roving ambassador for sub-Saharan Africa currently travelling in the region looks to make plans for the exchange of trade delegations, the Pakistani High Commission in South Africa said on Tuesday.When contacted by The Namibian, the German Embassy in Windhoek did not know of any recent or intended visits by any of its nationals to the factory.However it is not necessary for diplomatic missions to be informed of business trips by its nationals.On Monday, an offer made by Ramatex to Government to buy the factory lapsed.Ramatex had given Government the option of buying the factory with a private partner.Although it could not be confirmed with Prime Minister Nahas Angula at the time of going to press, it is understood that Government declined the offer.Government has said that it does not have the capacity to run such an operation.Ramatex’s Malaysian owners no longer want to keep their business open in Namibia: they cite poor productivity and alleged operational losses as their reasons.They have not set a deadline for their withdrawal from the country.Finance Permanent Secretary Calle Schlettwein, who has been chairing a technical committee on the future of Ramatex, said upon enquiry from The Namibian yesterday that he did not know of anyone having expressed interest in either buying or running the textile factory.Officials from the Ministry of Trade’s Investment Centre also could not shed light on foreign interest in taking over the factory.Currently the Finance and Trade ministries are undertaking routine checks at the factory to ensure that it is complying with the Export Processing Zone Act (EPZ) and regulation of the African Growth and Opportunity Act (AGOA), through which it enjoys duty-free export of products made in Namibia to US markets.Although the audits had not been prompted by the current situation at Ramatex, Schlettwein said it had to be established whether Ramatex was exporting equipment for purposes other than repair and later return to Namibia, because that would incur the payment of duties.In recent months, workers have reported the emptying out of the factory’s spinning and knitting divisions, while those who previously worked in these sections have been moved to other divisions that are still operational.Schlettwein could not say what the next step in the negotiations with Ramatex would be, saying the committee only acted on instructions from the Premier to discuss and assess various options and scenarios related to the future running of the factory.The Namibian has reliably learned that a German business party toured the factory on Monday and held discussions with Ramatex management.Ramatex Manager BK Ong was said to be in South Africa when contacted about the visit yesterday.The Namibian also understands that business people from Pakistan may visit the factory to discuss the possibility of running the operation, as its roving ambassador for sub-Saharan Africa currently travelling in the region looks to make plans for the exchange of trade delegations, the Pakistani High Commission in South Africa said on Tuesday. When contacted by The Namibian, the German Embassy in Windhoek did not know of any recent or intended visits by any of its nationals to the factory.However it is not necessary for diplomatic missions to be informed of business trips by its nationals.On Monday, an offer made by Ramatex to Government to buy the factory lapsed.Ramatex had given Government the option of buying the factory with a private partner.Although it could not be confirmed with Prime Minister Nahas Angula at the time of going to press, it is understood that Government declined the offer.Government has said that it does not have the capacity to run such an operation.Ramatex’s Malaysian owners no longer want to keep their business open in Namibia: they cite poor productivity and alleged operational losses as their reasons.They have not set a deadline for their withdrawal from the country.Finance Permanent Secretary Calle Schlettwein, who has been chairing a technical committee on the future of Ramatex, said upon enquiry from The Namibian yesterday that he did not know of anyone having expressed interest in either buying or running the textile factory.Officials from the Ministry of Trade’s Investment Centre also could not shed light on foreign interest in taking over the factory.Currently the Finance and Trade ministries are undertaking routine checks at the factory to ensure that it is complying with the Export Processing Zone Act (EPZ) and regulation of the African Growth and Opportunity Act (AGOA), through which it enjoys duty-free export of products made in Namibia to US markets.Although the audits had not been prompted by the current situation at Ramatex, Schlettwein said it had to be established whether Ramatex was exporting equipment for purposes other than repair and later return to Namibia, because that would incur the payment of duties.In recent months, workers have reported the emptying out of the factory’s spinning and knitting divisions, while those who previously worked in these sections have been moved to other divisions that are still operational.Schlettwein could not say what the next step in the negotiations with Ramatex would be, saying the committee only acted on instructions from the Premier to discuss and assess various options and scenarios related to the future running of the factory.