The management of the Kumasi Shoe Factory is considering closing the factory over the refusal of the security agencies, particularly the Ghana Armed Forces (GAF), to patronise its boots and shoes.
Nothing had changed since November 2017 when the management of the factory came out to lament the effects of the refusal of the state security agencies to patronise their products.
The development had led to the operations of the factory taking a nosedive.
Officially known as the Defence Industries Holding Company Limited (DIHOC) Footwear Division Limited, the factory is jointly owned by the GAF and a Czech Republic-based company Knights a.s., acting through its subsidiary, Knight Ghana Limited.
When the Daily Graphic visited the factory in Kumasi last Friday, work had slowed down because boots and shoes which had earlier been produced for the security agencies were still yet to be purchased.
The workforce of 200 in 2012, when the company was resuscitated, had been slashed to 41 because there is little work to be done.
Few orders were being received from private individuals and entities.
Currently, the factory is producing about eight per cent of its installed capacity of 700,000 pairs of security boots per annum.
The development has been compounded by the continuous piling up of electricity bills, VAT and import duties on raw materials.
The Kumasi Shoe Factory was formerly called the Ghana Industrial Holding (GIHOC).