A LOCAL synthetic hair products manufacturer has lamented the influx of cheap and sub-standard imports which are destroying the domestic industry.
Aaron Ufumeli
Blue Track Investments, the producers of Bella and Nuance trademarks said imported products were creating unfair competition as locals were operating in a labour-intensive environment with very small margins.
Corporate affairs director Moses Chundu told journalists during a tour of the company’s Graniteside factory on Monday that they were paying a minimum wage of $260 compared to the $130 at its unit in Zambia.
“Our operations are labour-intensive and this impacts negatively on us. However, we are trying our best to survive given the tough environment we are operating under,” Chundu said.
He said smuggled hair products were providing unfair competition. The company imports its fibre from South Korea. It requires 20 tonnes of fibre a month to manufacture weaves and an additional 13 tonnes for braids.
Chundu said the company has been cushioned by its investor, Taesung Chemicals, to leverage on its lines of credit.
“The investors take the flak there. We have been able to bypass the country’s risk element from a financing perspective,” He said.
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The company employs over 600 workers in Graniteside and Workington. Out of the 40% of its exports mainly to Zambia and Malawi, Blue Track investments made $ 2,5 million.
Plans were underway to buy new premises in Graniteside and set up another branch in Mozambique.
