Namibia's Ministry of Trade, Ramatex management and the Namibia Food and Allied Workers Union (Nafau) have dismissed media reports that Rhino Garments, a subsidiary of the Ramatex textile company, is closing its doors.

Nafau organiser John Paporo told reporters in the capital on Thursday that media reports to that effect were not true.

On Wednesday, Rhino Garments had to call in the Police when some of its close to 1 700 workers demonstrated after reading in the paper that the company was closing.

Paporo admitted that the company was experiencing financial problems because of a lack of buyers, but said management had only closed the factory temporarily while it negotiated with the union and Government.

He said workers were granted leave until this Friday, March 31, by which time there was expected to be a solution.

While the press conference was taking place, some protesting workers tried to enter the factory premises, but were barred by security guards armed with batons.

Moses Pakote of the Ministry of Trade and Industry told journalists that Rhino Garments was experiencing problems, "but the situation is under control and the problems are being addressed".

Rhino Garments General Manager Jauch Chin was present at the conference and was adamant that the company was not facing closure.

He said the Ministry of Trade would clarify everything on the company's behalf.

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