06 May Cape based Sheraton Textiles unveils new multi-million Rand production plant and launches Employee Ownership Trust
Cape Town – In a bid to improve its competitiveness, Capetown based bedding and linen home textiles manufacturer, Sheraton Textiles has officially commissioned a multi-million Rand state of the art production facility located in Diep River, Cape Town. This plant will also help to enhance Sheraton’s production capacity and augment the company’s growth strategy.
Speaking at the launch event, Minister of Trade, Industry and Competition (dtic), Ebrahim Patel said, this development is in line with government’s localisation and industrialisation initiatives aimed at strengthening the competitiveness of the local Clothing, Textiles Footwear and Leather Industries (CTFL).
“It’s imperative for local companies to invest in state-of-the-art plant and production facilities and machinery so that locally produced groups can compete against imports. This way, we are helping to preserve local jobs and, in the process, enhancing the country’s industrial capacity,” said Patel. He added that the newly commissioned plant spoke to government’s commitment to transforming the country’s socio-economic landscape.
Development financier, the Industrial Development Corporation (IDC) provided R140m towards funding towards Sheraton’s acquisition of the new plant which is based in Diep River.
The event also culminated into Sheraton launching a Worker’s trust which will benefit nearly 400 workers of the company. As part of the terms of the trust, the IDC will provide funding enabling the trust to acquire a 15% equity in Sheraton to the benefit of employees – a development which was commended by Patel. Since 2019, the number of Esops has grown to 125 with 98 having already been established – 27 in process of attaining registration – in the process benefiting 551 000 workers. The equity or share value of these Esops is now estimated to be R70.3 bn covering 118 companies.
“ESOPs are key for us to transform the economy, address inequality and unemployment. Since 2019, South African workers spread across key sectors of the economy have become owners of businesses some which are key to industrialising our economy. Among these is Sheraton Textiles – a company which manufactures and supplies home textile and other bedding, curtaining and napery products to some of the country’s biggest retail and hospitality brands including some retail and hospitality clients spread across the SADC region,” said Minister Patel adding that another significant achievement is that the newly launched Trust will now have a representative on the Sheraton Textiles Holdings Board, enabling workers to have a voice in the strategic and policy direction of the company.
IDC interim CEO David Jarvis committed the IDC to financing more Esops noting that the development funder had contributed significantly to transforming the local economy in the process empowering workers in their respective workplaces.
“Since the advent of a new democratic era, we are proud to have played a meaningful role in the creation of a new society – one in which previously marginalised communities have since been empowered to chart their own economic destiny. However small their stake in the company, workers are motivated to increase productivity levels in that business. In this case, Sheraton Textiles employees now have equity in a 104-year-old business that has special historical ties to SA’s textile industry, said Jarvis.
Sheraton CEO Saleem Mowzer thanked the IDC for its contribution to Sheraton’s growth trajectory. “The local textiles industry is facing several headwinds most which relate to cheap imports from the east. The fact that we have been able to maintain our growth momentum in the face of such adversity is largely due to support from partners like the IDC and the dtic. This moment we have just witnessed is significant to the workers of this company in that they can rightfully begin to claim ownership of this business. This employee share scheme will enable our employees; through a trust structure; to participate as an equity partner in the company – in the process empowering them to influence the strategic direction of the business, while also benefitting from future dividend payouts,” said Mowzer.
Issued by: Tshepo Ramodibe
Head: Corporate Affairs
Tel: 011 269 3000
For enquiries:
Contact: Chimwemwe Mwanza
Media Relations: 073 535 0300
Chimwemwem@idc.co.za
