Garment giant chooses Ethiopia as full-process supplier

　Some of the garments that workers at the PVH plant in Hawassa, Ethiopia, sew are made from Ethiopian-grown cotton. (@ PVH)

The work in the garment industry is not just about cutting and sewing high-quality clothes to make the company’s brand famous all over the world. Garment companies also need to treat workers fairly and operate factories that do not harm the environment.

This is a challenge for global industry and commerce. Most ready-made garments such as shirts and pants sold in the United States are woven and sewn elsewhere.

Now, with the help of conglomerate PVH Corp., Ethiopia is adding its name to the garment industry. PVH Corp. is the owner of Calvin Klein, Van Heusen, Izod, Arrow, Speedo, Tommy Hilfiger and other brands.

This year, PVH and Alaffia are recipients of the Secretary of State’s Award for Corporate Excellence. The award recognizes companies that exemplify the best ethical values in their overseas operations. Alaffia sells beauty products produced in Togo.

PVH is headquartered in New York, formerly known as Phillips-Van Heusen Corp, and is now known as Hawassa, 220 kilometers south of Addis Ababa. The main tenant of the Model Industrial Park employs 15,000 workers, 90% of whom are women, three years after the groundbreaking of its subordinate factories, and may employ an additional 45,000 workers in the future. PVH has established a joint venture to manage one of its factories for the first time in 30 years.

The industrial park attaches great importance to protecting the environment. It has state-of-the-art weaving and garment factories, uses renewable hydropower and a zero-wastewater treatment plant, and all wastewater can be recycled.

A factory in which PVH has a majority interest is located in a new industrial park in the city of Hawassa. Various weaving and manufacturing plants already employ 15,000 workers. (PVH)

PVH stated that it chose Ethiopia because of its development potential and the ability to establish a truly comprehensive vertical supply chain, including cotton cultivation, fabric dyeing, sewing and final finished garments.

As early as more than 20 years ago, PVH took the lead in requiring suppliers to comply with fair labor standards. According to Bill McRaith, the company’s global supply chain director, PVH’s mission in Africa is to create new sources of low-cost garments while also establishing the company’s values from the beginning.

McCress said PVH told suppliers, “This is an opportunity for us to learn from aspects that we wish we had done better in the past.” Some suppliers also settled in the industrial park with the company.

PVH imports shirts, trousers, underwear and other products from more than 50 countries. McLeas believes that Ethiopia and the entire East Africa region have the potential to become one of the company’s seven major suppliers.

International agencies such as the U.S. Agency for International Development, the British Department for International Development, the African Development Bank, and the Japan International Cooperation Agency have The Ethiopian government’s Awassa Project Vision Plan expresses support and supports efforts to provide workers with affordable housing and transportation.

McCress said that in 2015, the U.S. Congress extended the Africa Growth and Opportunity Act for 10 years, which also prompted PVH to implement the plan formulated by the company.

In November 2017, the first batch of Van Heusen brand men’s shirts shipped from the industrial park were made of 82% Ethiopian cotton. (Title: Garment giant chooses Ethiopia as full-process supplier)

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