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Announcement of Ramatex investment in the Eastern Cape textile industry
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Speeches and Media Release
 Provincial Treasury, Economic Affairs, Environment & Tourism

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EASTERN CAPE PROVINCIAL GOVERNMENT
 ADDRESS BY  MEC GODONGWANA :
 ANNOUNCEMENT OF RAMATEX INVESTMENT IN THE EASTERN CAPE TEXTILE INDUSTRY
 ON 10 OCTOBER 2000




Mr Master of Ceremonies, the Honourable Datuk Ahmad Zahid Hamidi - Chairman, Ramatex Group, the mayors of East London and King Williams 
Town, other dignitaries and ladies and gentlemen.

In a year or two from today we will look back and say it was October the 10th when the economic fortunes of the Eastern Cape turned the 
corner.

There is trend emerging and that is: an undisputed growth investor confidence in the Eastern Cape as profitably investment destination.

A few of the recent investments include:

* the new Daimler Chrysler plant here in East London,
* Volkswagen South Africa exports of high-tech Golf 4s
* the appointment of the Ford engine factory in Port Elizabeth as the sole supplier of the 1,3 RoCam engine to the world; and
* Our market share in the catalytic converter industry continues to expand each year.

These successes are proof that the Eastern Cape is capable of competing successfully in the global economy.

The announcement, today, by the Ramatex Group to further invest US$110 million, approximately R800 million,in world-class garment factory 
in King Williams Town and integrated textile mill in East London strengthens our resolve to diversify our provincial economy.

The restructuring of the South African economy has seen some significant job losses here in the Eastern Cape, particularly in the clothing 
and textile industry. The combined effect of the two Ramatex investments will produce more that 13,000 jobs.

The jobs that were lost were only sustainable under a siege economy  one in which there was no competition from more efficient, better 
managed and more modern suppliers. Todays investments place us firmly in the global market place. We are competing against the best in the 
world with the most modern equipment and with what will be a highly-trained workforce.

Certainly, the medicine has been hard to swallow, but its safe to say the patient is well on the way to recovery.

However, it is a recovery which will only be sustained if we nurse it carefully.That means we have to invest in people. With must 
satisfaction, I have learned of the commitment by Ramatex Group to skills development.

Ramatex, a Malaysian company, is based in a developing country like ours. It understands the need for human capital development and has 
committed itself to funding an institute for the training of textile workers. The institute will train both Ramatex workers and people from 
the community. It is evident that the secrets behind Ramatexs success is that it creates business opportunities for entrepreneurs.

Everyone benefits from this scenario

* the industry, because it has the people it needs to make the products the customer wants and because costs are reduced through economies 
of scale and the cluster effect
* the people of the region, because more job opportunities are created
* and last, but not least. As MEC for finance I have to mention the fact that government structures benefit through taxes  from company 
and personal tax, through to the rates paid to the local authority.

How do we as government and the business community attract more companies like the Ramatex Group to our province?

The primary role of government is to create an investor-friendly climate. ECDC/CIMEC, as it is at the moment, is mandated to roll out the 
red carpet to investors and to smooth the way into the province. Todays announcements are a tribute to the commitment of the ECDC/CIMEC 
team.

Good organisational and negotiating skills are not enough, however. Both provincial and local government needs to work with ECDC/CIMEC to 
make land available at extremely competitive prices. A number of transitional local councils are going out of their way to provide this 
land, and we are seeing results.

Government also has to provide incentives to business to locate here, and we are working with the Department of Trade and Industry to 
provide these as part of the Eastern Cape package.

Business also has a role to play. The first is to be ambassadors for the province when you travel abroad. It is really sad to hear South 
African businessmen talking about the problems rather than the opportunities when they travel. Sure we have problems, but things are not 
going to get better as long as we chase investment away.

I am not saying ignore the problems. We have to solve them, and we have to do it together. If that means robust debate between business and 
government, then that is the nature of democracy. But, please keep the fight in the ring  within the shores of South Africa.

Then business has to invest. Todays announcements are about large-scale investment. They are also about opportunity. Textile complexes 
need builders, maintenance people, technicians, cleaners, environmentalists, nurses, trainers, button makers, zip manufacturers, suppliers 
of needles, places to stay, restaurants, catering, &#133;&#133;. the list goes on.

There is business to be done  go out and get it.

Labour is, of course, an integral part of that business mix. The workers in the textile industry have felt the effects of global 
competition. They are being given a second chance. It is an opportunity they need to grasp with both hands. I am not saying that labour has 
to give up its hard-won gains. Simply that workers have a responsibility to ensure that the investment we have attracted to the province is 
so successful that it attracts more global companies. That, in turn, will create more jobs.

Yes, the tide is turning. The Eastern Cape is emerging as one of the worlds prime investment locations. We have the choice of jumping in 
and enjoying the ride or watching yet another wave of opportunity wash past.

No, come to think of it, there isnt a choice. We have to commit ourselves fully.

Finally, on behalf of the provincial government and all its agencies like ECDC/CIMEC, we want to officially welcome the Ramatex Group to 
the Eastern Cape.

We commit ourselves to your continued support for all your plans for expansion and growth.

I thank you

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