Archive for May, 2007
Two buyers pursue garment firm Pod
The Press, New Zealand
Listed fashion and garment firm Pod– linked to Christchurch businessman George Gould – has two potential buyers pursuing it.
A rival, LWR Manufacturing, is indicating it wants to make a takeover offer, and another group is seeking to buy one of Pod’s three business strands, Pod said yesterday.
LWR Manufacturing (LWR) is offering 50c a share, valuing the company at $22.53 million, with that price being seen as light by at least one significant shareholder in Pod.
The LWR offer is a battle of old against the new in many senses, with LWR having been around in different forms since 1904.
Gould, Pod’s chairman and cornerstone investor, is a fifth generation Cantabrian and associated with the Pyne Gould Guinness.
Pod sees the alternative offer to buy one of three subsidiaries – Designer Textiles International, Mollers Homewares and Michele Ann – as more positive although it is not naming which unit or the prospective buyer.
Pod’s shares yesterday closed up 3c at 47. The shares have traded in a 29c to 68c range over the last year, down from a peak of 124c in late 2004.
In recent times the high kiwi dollar has hindered the company, which has been increasingly moving into export markets.
LWR was yesterday not commenting beyond a statement issued through New Zealand Exchange (NZX) saying it “has an interest in making a takeover offer for all the shares in Pod Limited at a price of 50c an ordinary share, but that it has not been in a position to formulate a formal offer to date”.
At 5pm yesterday, Gould said Pod had yet to receive a formal notice from LWR.
LWR Manufacturing is part of the Lane Walker Rudkin Industries group structure, privately owned by Ken Anderson. Anderson was not available for comment yesterday.
A letter from LWR stated any takeover offer would be subject to a 90 per cent acceptance condition, and it intended to negotiate pre-bid agreements with significant shareholders, Pod said in a notice through the NZX.
Gould said he could not comment about his view on whether Pod should be sold in part or full, but there was more than one interested party. “There certainly is competition for the assets,” he said.
It was “early days” in a process that would involve the appointment of an independent adviser to look at the LWR offer if it was formalised.
“We’ll let shareholders know as soon as we’ve formed a view on it,” Gould said.
Pod chief executive Malcolm Walkinshaw yesterday said it had been a surprise to receive the original offer from LWR.
There had also been a separate unsolicited proposal for the sale of “one of the three main businesses in Pod” , Walkinshaw said.
The company had been working on the sale of subsidiary proposal.
“I think that’s a fairly positive situation …”
Gould, whose family investment vehicle Gould Holdings is the biggest single shareholder, said Pod would see bottom line profitability in the June 2008 year.
Walkinshaw said trading for Pod was solid and generally on target. “Generally trading’s held up, but the exchange rate … has gone against us.”
An ACC spokesman said LWR might need to up the indicated offer price. ACC is a stakeholder in the company. ACC could not comment in detail until it saw the formal offer. “At 50c, we won’t be interested in that sort of level … (We’d) be quite happy to continue owning the company below that level.”
Pod had significant Auckland property assets. “If you crunch through some numbers you can get to 50c of value very quickly … it’s almost like a provisional level they’re looking at launching an offer,” the ACC spokesman said.
May 31st, 2007
Dotts: It’s the end for all CNMI garment factories
Saipan Tribune, Micronesia
By Ferdie de la Torre
Reporter
Once the new minimum wage reaches $4.05 next year, there will be no more garment factories on Saipan, according to a lawyer representing many garment manufacturers on the island.
Attorney Michael Dotts, in an interview with Saipan Tribune, said he believes that with the passage of the new minimum wage rate, most of the factories still on the island have only one year to go.
“Some factories feel that they could afford a wage rate of up to close to $4 per hour and some feel that they can’t really afford any wage increase at all,†he said.
For those that could afford up to $4, the lawyer said, they may be able to stay here a little bit longer because the $4 will kick in after a year.
“For those who are pretty much on the rope, given all the other costs, increases such as power and transportation and the continued decline in their ability to compete with the Asian markets, they’ll probably close much quicker,†he said.
“Once it gets to $4, that’s it. They cannot compete. And for others they cannot even compete right now,†Dotts said.
President Bush approved the wage hike bill on May 25, 2007. The legislation will increase the local wage floor by $4.20 in nine steps, over an eight-year period. The first 50-cent increase will be in effect on July 24. Fifty cents will be added every year until the local rate reaches the federal level of $7.25 an hour.
Dotts said the garment industry can possibly survive longer if there is a substantial change in the value-added provision.
Under the value-added provision, Dotts explained, manufacturers have to do a certain amount of manufacturing in Saipan to be able to have the “Made in U.S.A.†label.
“For example, you need to do 40 or 51 percent here to say it is ‘Made in U.S.A.’ If the U.S. Congress changes the restrictions so that you can do 30 percent or 25 percent here and still carry the ‘Made in U.S.A.’ [label], a lot of the labor could be done in Asia,†he said.
Dotts said a larger percentage of the work could be done in Asia at a much cheaper rate and the pieces could be brought to Saipan for assembly and then it would carry the “Made in U.S.A.†label.
“But as it stands now, the amount of labor you have to do on material here exceeds any economic benefit of having a ‘Made in U.S.A.’ label,†he said.
Dotts, however, admitted that changing such restrictions has a very slim chance since CNMI has been trying to do that for a long time now and that it doesn’t seem like Washington is receptive to it.
“Overall, it’s hard to say. We’re turning back the clock. We’re going back to the economy prior to 1988 probably. Maybe back to 1985 or 1984. There’s going to be a lot fewer jobs. There’s going to be a lot fewer ships coming in the ports. So it’s going to be a lot fewer goods available on the shelves,†he said.
Saipan Chamber of Commerce president Juan T. Guerrero had earlier warned of massive layoffs and work hour reductions following the federal wage hike legislation.
Guerrero, speaking as an individual business, said the impact of job losses and shorter work hours will offset whatever economic activity will result from the workers’ increased buying power.
The Chamber has not met since Bush signed the federal bill into law and therefore has not formed an official position on the matter.
May 30th, 2007
Garment industry urged to attain higher standards
Vietnam Economic Times, Vietnam
President Nguyen Minh Triet urged representatives of the nation’s garment industry to reach international standards by upgrading technology, improving management methods and focusing on human resources development.
At the Viet Nam Textile and Apparel Association (Vitas) congress for 2007-10 held in Ha Noi on Saturday, Triet also praised the garment industry for its high-flying growth in export revenue and volume
“The industry has considerably contributed to national proverty reduction by providing so many jobs to those that needed them,” Triet said.
The third Vitas congress, under the theme Fashion – Quality – Trademark: Targeting Exports of $10-12 billion by 2010, drew the participation of top officials from the Ministry of Industry, the General Conferation of Labour and the Viet Nam Chamber of Commerce and Industry, among others, as well as representatives of garment enterprises representing about 80 per cent of the sector’s total production capacity.
The congress elected a new executive board and re-elected Le Quoc An as president of the Vitas.
An announced that the garment industry had targeted a growth rate of 20 per cent per year through 2010 and an increase in added value of products from 30 per cent to 50 per cent.
Last year, the garment industry posted export turnover of $5.8 billion, a year-on-year increase of 20.5 per cent.
In 2006, Viet Nam ranked for the first time among the ten leading garment exporting countries in the world. The sector’s top export markets included the U.S (accounting for 55 per cent), EU (20 per cent) and Japan (11 per cent).
With the country’s official accession to the WTO this year, garments have been widely expected to record significant growth in export turnover due to easier access to markets around the world.
However, the industry still faces obstacles in the form of trade and technical barriers such as the monitoring system imposed against Vietnamese exports by the US Department of Commerce.
Nearly 2,000 businesses belong to Vitas, 0.5 per cent of which are State-owned companies and around 25 per cent are foreign-invested.
Source: Vietnam News
May 29th, 2007
Garment industry urged to attain higher standards
Vietnam Economic Times, Vietnam
President Nguyen Minh Triet urged representatives of the nation’s garment industry to reach international standards by upgrading technology, improving management methods and focusing on human resources development.
At the Viet Nam Textile and Apparel Association (Vitas) congress for 2007-10 held in Ha Noi on Saturday, Triet also praised the garment industry for its high-flying growth in export revenue and volume
“The industry has considerably contributed to national proverty reduction by providing so many jobs to those that needed them,” Triet said.
The third Vitas congress, under the theme Fashion – Quality – Trademark: Targeting Exports of $10-12 billion by 2010, drew the participation of top officials from the Ministry of Industry, the General Conferation of Labour and the Viet Nam Chamber of Commerce and Industry, among others, as well as representatives of garment enterprises representing about 80 per cent of the sector’s total production capacity.
The congress elected a new executive board and re-elected Le Quoc An as president of the Vitas.
An announced that the garment industry had targeted a growth rate of 20 per cent per year through 2010 and an increase in added value of products from 30 per cent to 50 per cent.
Last year, the garment industry posted export turnover of $5.8 billion, a year-on-year increase of 20.5 per cent.
In 2006, Viet Nam ranked for the first time among the ten leading garment exporting countries in the world. The sector’s top export markets included the U.S (accounting for 55 per cent), EU (20 per cent) and Japan (11 per cent).
With the country’s official accession to the WTO this year, garments have been widely expected to record significant growth in export turnover due to easier access to markets around the world.
However, the industry still faces obstacles in the form of trade and technical barriers such as the monitoring system imposed against Vietnamese exports by the US Department of Commerce.
Nearly 2,000 businesses belong to Vitas, 0.5 per cent of which are State-owned companies and around 25 per cent are foreign-invested.
Source: Vietnam News
May 29th, 2007
Garment owners warned: Give minimum wage or get out of business
The New Nation, Bangladesh
The government would go tough with garment-factory owners to make them pay the recommended minimum wages to their workers if they want to run their business, the Finance and Commerce Adviser warned Sunday.“We won’t allow any excuse in implantation of the minimum wage; if they fail, they have to go out of business,†Adviser Dr Mirza Azizul Islam told reporters to make clear government stance, as there have been complaints about deprivation from ill-paid workers for long. He said this after his ‘Social Compliance Forum for RMG’ meeting in the Commerce Ministry conference room.
Responding to a question, he said that the government would take actions as per the law of the land against the defaulter garment owners.
“If the garment owners say that they will not be able to pay the minimum wage as they don’t have adequate order, we will not tolerate those lame excuses. You have to pay the minimum wage, otherwise, like the other sorts of business, this business also has exit point as well as entry point,†he said.
Dr Aziz said that in a sample study on 1023 garment factories the government figured out that 600 of them are compliant and 130 non-compliant. “The other factories are medium- category factories as they don’t apply compliance issues properly.â€
He also hinted that the government is very much active to make all factories compliant.
At the meeting, the participants also agreed to take experts’ approval for structural design of the factory buildings. In the past, it was mandatory to take approval for layout plan from RAJUK. As of now, the structural plan also will have to have approval from the Works Ministry to avoid factory-building collapse like Spectrum Garments at Savar in April 2005.
“Works Ministry will involve the stakeholders in this connection, including the engineers of all public engineering universities,†the Adviser said.
The meeting also decided to work extensively to boost country’s image abroad. “BGMEA with other stakeholders will review the matter and quickly submit a proposal to the ministry,†Dr Aziz told the journalists.
Representatives from BGMEA, BKMEA, BTMA and ministries concerned were present at the meeting.
© Copyright 2003 by The New Nation
May 28th, 2007
Fitial orders garment hiring stopped
Saipan Tribune, Micronesia
By Agnes E. Donato
Reporter
Gov. Benigno R. Fitial has ordered the Department of Labor to stop garment factories from hiring any new workers.
Forecasting the “fast-tracked demise†of the garment industry to follow the new federal wage hike law, the governor said that no additional garment workers should be allowed into the CNMI until those displaced are hired or sent home.
“The proposal for stopping the entry of new garment workers has been discussed for some time. I think it is time for us to act to make sure that no new workers come into the Commonwealth until the pool of non-resident workers created by the closures (and imminent closure) of garment factories are absorbed or repatriated,†the governor said in a memorandum on Friday.
He ordered the Labor secretary to promulgate emergency regulations to implement the new policy. Emergency regulations take effect immediately and are not subject to the 30-day public comment period required for permanent regulations.
Fitial noted that there is a backlog of about four months’ applications still waiting processing at the Labor Department. He said all the applications for garment workers should be pullout from the files and held until the end of the fiscal year.
He also instructed the department to enforce rigorously the current regulation that provides no job vacancy announcement can be certified until the employer shows a good-faith attempt to hire non-resident workers already in the CNMI.
“Each employer who wants to hire a non-resident worker should post a notice at Top Fashion, many of whose employees are looking for work or should consult the list of Concorde workers who are looking for work,†he said.
He also told Labor to ensure all JVAs for garment workers and similar unskilled positions typically filled by foreign workers are published in the Chinese newspaper as well as one of the English-language papers.
Furthermore, he said Labor should review current operations to ensure the Division of Employment Services keeps a listing of foreign workers on island who can legally seek jobs here.
May 28th, 2007
Gokaldas consolidated revenues breach Rs 10 bn barrier
Myiris.com, India
Gokaldas Exports, India`s largest manufacturer of readymade fashion garments, became the first ever Indian apparel company to cross the Rs 10 billion revenue mark. The company`s consolidated revenues for the year ended Mar. 31, 2007 climbed 16.5% year on year to Rs 10,449.60 billion, from Rs 8,973.60 million last year.
Due to higher realization and greater cost reduction efforts, the consolidated profit after tax (PAT) for the year rose 15.7% to Rs 705.3 million from Rs 609.7 million last year.
Basic and diluted earnings per share (EPS) on a consolidated basis came to Rs 20.52 a share from Rs 17.91 a share last year.
“By the end of FY07, we are the first Indian apparel company to cross the Rs 10 billion mark decisively. This year has also seen the highest capacity expansion for us - up to Rs 1 billion of capex has been added. Our order book at the current quarter, Q1 FY08, is about Rs 2.50 billion,“ said Rajendra J Hinduja, executive director, finance, Gokaldas Exports.
(Q, N,C,F)*
Gokaldas Exports has a capacity of 30 million garment pieces currently, after the capex.
The company commissioned five new plants during the year 2006-07 three in Bangalore, and one each at Tumkur and Mysore. Another factory at Hyderabad is under construction and will be ready in a few months. Two existing factories have also been expanded, and their capacity enhanced by 30%. The company added up to 11,000 new personnel taking the headcount to 54,000 people, from 43,000.
For the quarter ended March 31, 2007, PAT climbed 20.69% quarter on quarter, to Rs 181.5 million from Rs 150.3 million last quarter. Revenues were up 14.9% Q-o-Q, to Rs 2,766.9 million from Rs 2,408.7 million last quarter. The basic and diluted EPS was at Rs 5.28 a share, from Rs 4.38 a share.
Gokaldas Exports is India`s largest manufacturer of readymade fashion garments. Operating out of Bangalore for over thirty years, Gokaldas is also a major player in the readymade garment industry across the globe. With a workforce of over 54,000 spread across 46 factories, Gokaldas caters to the requirements of more than 100 famous labels in 39 countries. With the likely retail boom in India, the company has also started a domestic supply division, catering to various big retailers who are expected to enter the garment retail segment.
Shares of the company ended up Rs 1.30, or 0.66%, at Rs 198.80. The total volume of shares traded at the BSE was 43,481. (Thursday)
May 25th, 2007
Vietnam targets to double garment export turnover in 2010
People’s Daily Online, China
Vietnam has eyed garment export revenues of 13-15 billion U.S. dollars in 2010, up from targeted 7 billion dollars in 2007, according to the Vietnam Textile and Apparel Association (Vitas) on Wednesday.
To achieve the target, local garment and textile producers are increasing the local content to 50 percent and the added value to 50 percent in the next four years.
The association is encouraging local garment firms to further explore traditional markets such as the United States, the European Union, and Japan, and seek more new ones.
It also urged them to focus on building trademarks, strengthening trade promotion, increasing products’ quality and improving design, marketing and management.
Vietnam reaped textile and garment export turnover of more than 5.8 billion dollars in 2006, of which over 3 billion dollars came from the United States, over 1.2 billion dollars from the European Union, and 628 million from Japan.
Source: Xinhua
May 24th, 2007
Raising minimum wage in CNMI will erase garment industry - Chamber of Commerce
Radio New Zealand International, New Zealand
Posted at 21:36 on 22 May, 2007 UTC
The president of Saipan’s Chamber of Commerce, Juan Guerrero, says moves by the U.S Congress to raise the minimum wage will erase what’s left of the garment industry in the Commonwealth of the Northern Marianas within months.
The controversial minimum wage bill, if enacted, will eventually more than double the U.S. minimum wage on CNMI from its current $3.05 to $7.25, over a number of years.
Mr Guerrero says it can’t afford any wage hikes, given the Commonwealth’s ailing economic situation.
He says many factories have already closed because they can’t compete with the low wages paid by developing countries that can now export their cheaper garments to the U.S.
Garment sales in CNMI dropped 42 percent or about 16.7 million US dollars in April, compared to the same period last year.
“As the President of the Chamber of Commerce, y’know sometimes I see this as a major problem because smaller smaller garments are still here, but we really don’t know. If there’s any increase in the minimum wage, then definitely the garment industry is history, in less than 60 days.â€
Mr Guerrero says the garment industry is one of the main industries for the Commonwealth, next to tourism.
May 23rd, 2007
Wages of garment workers
The New Nation, Bangladesh
A REPORT on the killing of a female garment worker and the injury of twelve other workers has appeared in the press. The workers of a garment factory at Gazipur near the Capital city staged a demonstration against the officials of the factory, who failed to pay dues on the day. The demonstrators called for the payment of overtime arrears along with monthly wage fixed as per tripartite agreement for the month of March. The owners of the factory called in the Police forces, who opened fire on the workers
Members of the police reportedly, tried to persuade workers to stop the demonstration and also avoid setting up barricades on the Dhaka-Mymensingh Highway. But workers set barricades on the road and damaged some transports moving on the same. The problem that caused workers to set barricades on the highway was the non-payment of wages for the month of March by the owners of garment factory. Along with that, owners were reportedly trying to reduce the actual hours of work, when workers were doing overtime duty for extra pay.
Agitation and even strike at some garment factories in the country have been observed frequently. The owners of garment factories and the Bangladesh Garment Manufacturing and Exporters Association (BGMEA) seem to have apparently not succeeded to make all their members to ensure formal employment of workers and payment of wages. Instead of ensuring effective management of the industries in the garment sector, that turned good export earners over the years, some owners opted for paying lower wages and benefits to workers.
Non-payment of arrear wages to workers has turned into a major problem in some garment factories. Some owners of garment factories have reportedly closed their factories with the ultimate end of not paying the due wages and benefits to hundreds of workers. The BGMEA has reportedly asserted before the press that the non-payment of wages and arrears thereof, is an “unintentional fault” of some owners of garment factories. As such, the Association may not take any measure that may look like a punishment of owners for their failure to pay due wages and benefits to workers.
The overall situation in the garment sector has been brought under monitoring by the official agencies. These agencies have so far recommended the waiver of various duty and charges amounting to five hundred crore of Taka in recent years. But some owners of garment factories and exporters of finished garment seem to have failed to appreciate the support of the government. Some of them seem to have set their mind only to earn profit and avoid diversification of their investments at home and abroad. The prevailing mismatch in the management of the garment sector should be done away with.
© Copyright 2003 by The New Nation
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May 22nd, 2007
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