Footwear company cries over poor sales
The lack of ready market has become a huge threat to the continued operation of the revived Kumasi Shoe Factory, which has been re-named the Defence Industries Holding Company (DIHOC) Footwear Division Limited.
The factory, employing about 200, is reported to be operating under-capacity because of the poor patronage of its products.
Dr. Karl Laryea, the Chief Executive Officer, expressed disappointment at the state of affairs in a meeting with the Trade and Industry Minister, Dr. Ekwow Spio-Garbrah in Kumasi.
The factory had been re-activated in year 2011 to produce safety boots for the uniformed security agencies but he said, that had not been the case.
The apparent disinterest of the state security agencies had constrained it to deal mainly with the private security companies and schools.
He underlined the need for the government to do everything to make sure that the directive to the military, police, CEPS, Prisons, Fire and Immigration Services to buy their boots from the company was complied with.
Dr. Laryea said this was critical to its survival and warned that it could fold up if the state failed to act.
He added that, given the needed patronage, it could hire about 3,000 people.
He spoke of plans to penetrate the West African market but said that could only come on the back of strong sales on the local market.
Dr. Spio-Garbrah, who was on a three-day working visit to the Ashanti Region, to acquaint himself with the challenges facing businesses and the way forward, said it was unfortunate the security agencies had failed to go with the directive.
He gave the assurance that he would engage his colleague sector ministers to find a way to address the problem.
He indicated that patronage of the made-in Ghana goods was vital to the growth of the local industries including the DIHOC Footwear.
He could not hide his satisfaction with the quality of the company’s products and encouraged the management to maintain the standard to attract more clients.
Source: GNA