In a bid to improve its competitiveness, Cape Town-based bedding and linen manufacturer Sheraton Textiles on Monday officially launched its new state-of-the-art factory and commissioned its Workers Trust employee share ownership programme (ESOP).
Also read: Cape Town’s clothing and textile industry boosted by new high-tech factory
National development finance institution Industrial Development Corporation (IDC), which currently owns 100% of Sheraton, invested R140 million towards the acquisition of the new factory.
The new plant based in Diep River is expected to greatly increases the efficiency and competitiveness of the company – one of South Africa’s biggest bedding and home textile companies.
Speaking at the launch event, Minister of Trade, Industry and Competition Ebrahim Patel said the development was in line with the government’s localisation initiative which aims to strengthen the competitiveness of the Clothing, Textiles, Footwear and Leather industries.
‘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.
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The launch event also culminated into Sheraton commissioning 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 for the Trust to acquire 15% stake in Sheraton to the benefit of employees.
According to the IDC,the number of ESOPs in South Africa has grown to 125 since 2019, with 98 having already been established – 27 in process of attaining registration – and in the process benefiting 551 000 workers.
The equity or share value of these ESOPs is now estimated to be R70.3 billion covering 118 companies.
Patel added that another significant achievement is that the newly launched Trust will now have a representative on the Sheraton Textiles Holding Board, enabling workers to have a voice in the strategic and policy direction of the company.
The workers’ shares will be held by the Workers Trust, headed by four trustees elected by the workers, with a fifth trustee appointed by the company.
They are Cathleen Davids, Reuben Reed, Ntokozo Moyo, Caryn Ruyter and Mohammed Mothala, as per Times Live. There will also be a non-executive trustee that will sit on the board and represent staff interests at a board level.
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Picture: Supplied