Cape Town based sewing thread manufacturer ACA Threads has bought competitor A&E South Africa in a deal which shows faith in the future of South Africa’s often beleaguered textile industry. A&E is the South African subsidiary of US company American & Efird.

The combined turnover of the two companies is around R70-million per year. Acquired as a going concern, the 55 staff members from A&E’s Epping premises will be incorporated with the 86 staff at ACA Threads Brackenfell factory during the course of the year.

Eckhard Marshing, CEO of ACA Threads, says the deal will ensure a world class supply base to satisfy existing and growing needs of retail for strong local manufacturing businesses. There is an increasing trend to look inside of South Africa and its neighbouring countries as the Chinese are starting to retain their goods for their own use, and import prices and logistical challenges attached to importing increase. South Africa is realizing that we need a solid local supply base, and government is supporting the process through its production incentive programs.

Source: http://english.ctei.gov.cn/News/Companies/274096.htm