Identifier
Created
Classification
Origin
08AMMAN3359
2008-12-23 03:55:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Amman
Cable title:  

Proposed QIZ Satellite Garment Factories Adhering to

Tags:  ELAB ECON KTEX JO 
pdf how-to read a cable
VZCZCXYZ0006
RR RUEHWEB

DE RUEHAM #3359 3580355
ZNR UUUUU ZZH
R 230355Z DEC 08
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 4005
RUEHEG/AMEMBASSY CAIRO 3860
RUEHTV/AMEMBASSY TEL AVIV 1453
RUEHJM/AMCONSUL JERUSALEM 5273
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS AMMAN 003359 

SENSITIVE
SIPDIS

STATE FOR NEA/ELA
STATE PASS TO USTR (FRANCESKI)
COMMERCE FOR ITA/OTEXA MARIA D'ANDREA

E.O. 12958: N/A
TAGS: ELAB ELAB ECON KTEX JO
SUBJECT: Proposed QIZ Satellite Garment Factories Adhering to
Guidelines Discussed for Their Establishment

REF: A) Franceski-Brown email dated 12/04/2008
B) AMMAN 3267

SENSITIVE BUT UNCLASSIFIED.

UNCLAS AMMAN 003359

SENSITIVE
SIPDIS

STATE FOR NEA/ELA
STATE PASS TO USTR (FRANCESKI)
COMMERCE FOR ITA/OTEXA MARIA D'ANDREA

E.O. 12958: N/A
TAGS: ELAB ELAB ECON KTEX JO
SUBJECT: Proposed QIZ Satellite Garment Factories Adhering to
Guidelines Discussed for Their Establishment

REF: A) Franceski-Brown email dated 12/04/2008
B) AMMAN 3267

SENSITIVE BUT UNCLASSIFIED.


1. (U) As requested ref A, Emboffs have sought to verify that the
ten proposed Qualifying Industrial Zone (QIZ) satellite factories
are creating new job opportunities for rural Jordanians and not
currently exporting garments under the QIZ agreement.


2. (U) Of the ten areas identified by the GOJ for satellite
factories, six currently have investors: Shoubak, Shouneh Wistah,
Madaba, Irbid, Al-Koura/Deir Abi Saeed, and Tafileh. Several of the
satellite factories, however, are not yet operational. The Madaba
area Sterling/Al Safi Textile CCKM Factory is in its final stages of
establishment and is expected to be operational in January 2009.
The EAM Maliban factory in Shouneh Wistah has not yet been
constructed, but the land has been purchased. According to a
representative of the Century Standard Textile Factory, plans for
constructing in Al-Koura/Deir Abi Saeed have been cancelled because
of decreasing garment demand. The GOJ has not yet commented on its
plans for this area. Post has requested updated information on the
Al Methaliah Textiles Factory in Irbid and the Rich Pine
International Factory in Tafilah.


3. (SBU) One factory, the Camel Factory in Shoubak, is making plans
to begin production once a final decision on satellite status is
reached. EconOff visited the area on December 22 where she observed
a one-room factory where approximately 50 Jordanian women were
sewing long-sleeve t-shirts. Camel managers said that the factory
is currently a training site with the produced garments being
donated to domestic charities. The managers said the factory
employs 2 male Jordanian managers; 3 male Jordanian security guards;
2 female Chinese trainers; and 60 female Jordanian garment workers.
The garment workers, aged 25-35 years old, had all graduated from
high school (a few had even graduated from college),but were
previously unemployed. All of the workers live within 12 miles of
the factory and are bused there via company transportation. They
work from 7:30 am until 4:30 pm and have a one-hour lunch break.
Workers are paid the QIZ minimum wage of $155 monthly and receive a
productivity-based bonus. The QIZ minimum wage, and thus the wages
at the Shoubak factory, will increase to $212 monthly in January.
The factory was clean, well-ventilated and decorated with
photographs of the factory's inauguration by King Abdullah II. The
managers said that there are currently no plans to increase the
number of workers because of the slowdown in retail orders (ref B).


4. (U) Post will report on conditions at other proposed satellite
factories septel.

Visit Amman's Classified Website at:
http://www.state.sgov.gov/p/nea/amman

Beecroft