Authorities are working urgently to address the fallout from the announcement that Performance Flotation Developments (Fiji) Limited, the largest lifejacket manufacturer in the Southern Hemisphere, will cease operations in Fiji after 33 years. The factory’s impending closure, set to occur within the next two months, will result in the layoff of 120 employees.

The company’s owner and managing director, Mike Towler, cited several economic factors contributing to this difficult decision, including soaring sea freight costs and rising labor expenses juxtaposed against declining productivity levels. The ongoing impacts of the COVID-19 pandemic have exacerbated these challenges, making it increasingly unfeasible to maintain operations in Fiji. Towler highlighted that the volume and bulk of the company’s products make air freight impractical, leaving sea freight as the only option, which has become unsustainable financially.

In conjunction with these operational challenges, the proposed amendments to the Employment Relations Bill 2024 raise concerns about productivity. The changes could require businesses to incur higher costs for reduced working hours, which could further complicate the environment for local manufacturing.

Trade Minister Manoa Kamikamica is currently discussing the situation with various stakeholders before issuing comments, while Wanarajan, the council president, directed additional inquiries back to Towler. Despite the difficult decision to relocate operations to Jiangsu Province in China, Towler expressed his commitment to the Fijian community and plans to remain involved locally, reflecting a hope for continued engagement and support.

This development signals significant challenges facing Fiji’s manufacturing sector, where cost competitiveness and operational efficiency are increasingly critical. Industry leaders are recognizing the need for structural improvements and better infrastructure to support local businesses. There’s a sense of urgency among Fijian manufacturers for innovative solutions to adapt to these changing economic conditions, illustrating resilience amidst adversity and pointing toward a potential for future growth through collaboration and strategic investment in technology.