PVH Group intends to establish a production base in Ethiopia
According to information obtained by the British media, the American clothing giant PVH Group, the parent company of Tommy Hilfiger and Calvin Klein brands, will start manufacturing garments in Ethiopia this summer (2016).
The garment supplier will build a new factory in the newly built industrial park in Hawassa City, south of the capital Addis Ababa.
Fassil Tadesse, President of the Ethiopian Textile and Garment Manufacturers Association (ETGMA), said: “PVH Group has been interested in setting up a production base in Ethiopia for a long time and will start production in July or August.
“PVH Group is planning to set up a garment procurement network and start purchasing garments from existing suppliers in Ethiopia.” Des added.
PVH Group spokesperson Dana Perlman confirmed: “In addition to factories, we hope to increase domestic sourcing for local production. PVH Group will not disclose details about production or investment plans at this stage.”
The newly built Hawassa Industrial Park started operation in June, covering an area of 300 hectares and providing 37 factories to produce garments and apparel.
The Ethiopian government is also in talks with other major garment manufacturers, including Ralph Lauren and VF Corporation, to participate in Ethiopia’s garment and textile sector and begin sourcing from local garment suppliers.
In 2014, in order to expand the growing garment and textile industry, the Ethiopian government planned to raise US$250 million from the World Bank to build seven industrial parks in the next five years.
Although ready-made garment companies such as H&M, Asos, George at Asda, Calzedonia, Primark and Tesco have purchased from Ethiopia, exports are still sluggish. This series of problems are attributed to management, technology, power outages and current fluctuations. Problems such as manpower shortage, high turnover rate and lack of communication with enterprises delay the implementation of investment projects.
That said, the government appears committed to building a procurement hub for the future at a time when investment appears to be accelerating across the country.
AAA
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