GRi Business, Economics & Finance 26 – 09 - 2002

Instability in Cote d'Ivoire affects flights

Juapong Textiles is back in business

VALCO declares 80 employees redundant

Market experiences dull trading

 

 

Instability in Cote d'Ivoire affects flights

 

Accra (Greater Accra) 26 September 2002 - The unstable political situation in Cote d'Ivoire has affected flight operations to that country from Ghana.

 

Airlines operating along the West Coast of Africa have had to adjust their flight schedules to fall within the curfew currently prevailing in that country while passengers in transit have also reduced.

 

Ghana Airways, South Africa Airways and Air Ivoire all plying the West Coast have suffered as a result of the political instability in that country.

 

According to an official of Ghana Airways, their daily flights, except on Mondays to Abidjan continue uninterrupted except that the flights times have changed.

 

He said they have also experienced a reduced passenger flight connections put over the period. According to the official, Ghana Airways flight on Monday, 23 September from Monrovia with 107 passengers had to fly over Abidjan because of the curfew, adding that the following day's flight carried only 32 passengers and that has not improved.

 

An official of South African Airlines said they have also experienced a reduced passenger flight and adjusted their flight schedule to conform to the Ivorian curfew regulations.

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Juapong Textiles is back in business

 

Juapong (Eastern Region) 26 September 2002- Mr Gilles Moisan, Managing Director of Juapong Textiles Limited (JTL), on Tuesday announced that the company's maiden consignment of about 100,000 yards of grey-baft (Cotton) has been exported to VLISCO, a Dutch textile manufacturing company.

 

He said VLISCO, which has 62.75 percent shares in JTL, belongs to the Gamma Holdings of Holland and is listed on the Amsterdam Stock Exchange. Mr Moisan was briefing Mr Kwasi Owusu-Yeboa, Volta Region Minister, during a visit to the textiles factory to familiarise himself with its operations.

 

He said about four million yards of the material would be exported to Nigeria, Togo, Burkina Faso, Cote D'Ivoire, Niger and South Africa for the manufacture of industrial textiles, exotic fabrics and interior decorations.

 

Mr Moisan said about 12 million dollars have so far been spent since 1998 on repair works, replacement and rehabilitation of obsolete equipment and the upgrading of skills of staff.

 

''JTL can compete on the international market provided it maintains its quality and quantity of materials since the competition from the Far Eastern countries is stiff.''

 

He appealed to the Ministry of Food and Agriculture (MOFA) to offer financial support to cotton farmers to produce more to feed the industry since uncoordinated approaches would lead to smuggling of the produce into neighbouring countries.

 

Mr J. K. van Baaren, Technical Director of JTL, said the factory, with a production capacity of 24 million yards per annum, is operating at about 65 percent capacity. He said government has 24.5 percent shares in the factory while Freedom Textiles of Hong Kong had 12.75 percent.

 

Mr Kofi Bayitse, Director of Human Resource of the factory told the Minister that management-worker relationship have improved tremendously and all were working as partners towards the sustenance of the factory.

 

He said the company was providing potable drinking water to the community. Mr Owusu-Yeboa commended management and workers for maintaining a high standard and appealed to them to sustain it in order to compete on the international market, create employment and wealth for the people and the nation at large.

 

He called for hard work, transparency and accountability in their operations and asked them to maintain dialogue and shun confrontation when labour issues occurred.

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VALCO declares 80 employees redundant

 

Tema (Greater Accra) 26 September 2002 - The management of the Volta Aluminium Company (VALCO) said it would declare 80 employees redundant with effect from 1 October.

 

Mr Ron Helton, Managing Director, told the company's workers that the decision had been taken to further improve "our efficiency to remain competitive in the face of the very difficult challenges posed by the worldwide aluminium industry".

 

He said "with consistently low aluminium prices over the last several months, which shows no signs of improving soon, coupled with reduced operating capacity since March, 2002, VALCO finds itself in severe financial squeeze that threatens its long term competitively".

 

Mr Helton said the redundancy would affect both unionised and non-unionized employees. He said that as part of the exercise, ''an evaluation and force-ranking system based on merit, potential skills in current job, physical and mental ability to assume other jobs as well as conduct will be used for the redundancy exercise.''

 

Employees wishing to go voluntarily may write to their department heads, latest by 1500 hours of 26 September, expressing such a wish. Mr Helton said low metal prices, the lowest in three years, low demand for metal, low volume of metal produced as a result of the one line shut down in March, had led to significant revenue losses.  ''VALCO is in worse financial situation now than the company was in March 2002.''

 

The Managing Director assured that work is starting immediately with the union and all other stakeholders to develop a redundancy package in line with the provisions of employees' conditions of service to minimize the impact of the exercise on employees and the company.

 

VALCO, which was producing at 80 percent capacity before March, was forced to reduce to 60 percent due to low level of water in the Volta Dam.  In March 199 workers were declared redundant.

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Market experiences dull trading

 

Accra (Greater Accra) 26 September 2002- The Ghana Stock Exchange on Wednesday experienced a dull trading that saw the total shares traded on Monday dropped significantly. However, the All-Share Index, the Market Index, managed to gain 0.8 points to close trading up at 1,307.20 points from 1,306.40 points. Shares traded dropped from 624,200 to 103,400.

 

The change in the year to date stood at 36.74 per cent from 36.66 per cent while the market capitalization moved up while market capitalization moved up from 4,852.84 billion cedis to 4,854.63 billion cedis.

 

On the broader market, there were five positive price changes. Unilever Ghana Limited (UNIL) gained 10 cedis to close trading at 4,240 cedis. Ghana Commercial Bank (GCB) finished the day richer by four cedis at 3,351 cedis.

 

The SSB Bank gained three cedis at 3,880 cedis. Standard Chartered Bank (SCB) and Ashanti Goldfields Limited gained two cedis each to close the day up at 26,023 cedis and 18,807 cedis respectively.

 

The following are the last prices of listed equities in cedis:

ABL                      380

AGC                  18,807                       +2

ALW                  4,000

BAT                            953

CFAO                   67

EIC                     4,520

FML                   1,627

GBL                            900

GCB                   3,351                        +4

GGL                           912

HFC                           955

MGL                           254

MLC                           261

MOGL               19,720

PAF                            750

PBC                      400

PZ                       1,850

SCB                   26,023                       +2

SPPC                          387

SSB                    3,880                        +3

SWL                           285

UNIL                  4,240                 +10

CMLT                        460

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