Fiji’s largest manufacturer of life jackets, Performance Flotation Developments (Fiji) Limited, has announced it will cease operations in Suva after 33 years due to economic challenges, specifically high sea freight costs and declining productivity since the COVID pandemic. Managing director Mike Towler stated that the company’s products are bulky and cannot be profitably transported by air, making the high costs of sea freight unsustainable.

The Nabua factory is set to close by the end of March 2025, with operations being relocated to Jiangsu Province in China. Towler expressed that maintaining a viable business in Fiji has become increasingly difficult due to diminished availability of skilled labor, rising operational costs, and overall competitiveness challenges.

“It is against Fijian law to operate an insolvent business, therefore before we reach that stage, we have reluctantly made this difficult decision to relocate our business to China,” Towler explained. He emphasized that despite the company’s closure, he intends to stay in Fiji, continuing to engage with the local community and his church in Navikinikini Village.

Mark One Apparel’s managing director, Mark Halabe, acknowledged Towler’s contributions to Fiji’s economy and community in his over three-decade tenure. He noted that the challenges faced by Towler and his company, including high shipping costs and labor issues, have forced such a tough decision. Halabe also underscored the importance of competitiveness in Fiji’s manufacturing sector, indicating shared concerns about the overall business climate.

This transition highlights larger issues within Fiji’s manufacturing landscape, including the need for improved infrastructure and support from development partners to maintain a healthy economic environment for local businesses. As Fiji navigates these challenges, it’s important to recognize the resilience of the business community and the potential for future growth through strategic partnerships and innovation.