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Business News of Saturday, 19 August 2017

Source: mynewsgh.com

Kumasi shoe factory collapsing due to inferior products - Deputy Minister

The shoe factory was the footwear division of the erstwhile Ghana Industrial Holding Corporation The shoe factory was the footwear division of the erstwhile Ghana Industrial Holding Corporation

Substandard raw materials used for production is the cause of the near collapse of the Kumasi Shoe Factory, Deputy Minister of Defense, Hon. Major (Rtd) Derek Oduro has  revealed.

“Bad or inferior raw materials are bought for the production of boots for the security to walk into water and bad weather conditions (Wellington boots). That is why nobody is coming to order”, he revealed.

“The factory has been set up and the equipment are there but where to get quality raw materials to produce quality boots and other leather works is the problem now”, the Nkronza North lawmaker explained.

The Deputy Minister, expressed disappointment over the state of the ailing factory during a tour where he saw only 49 workers at post.

According to him, it was anticipated that over 300 workers are employed promising that government will revamp the factory to a certain standard where quality raw materials will be imported for production.

Background

The shoe factory was the footwear division of the erstwhile Ghana Industrial Holding Corporation (GIHOC), established by the first President of the country, Osagyefo Dr Kwame Nkrumah in 1960. It was to produce boots for personnel of the public security services and the general public.

Following the overthrow of Dr Nkrumah, the company collapsed and was revived in November 2012 through collaboration between a private investor, Czech-based Company, Knights, and the Defence Industries Holding Company (DIHOC) of the Ministry of Defence.