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Ghana's ATL not in collapse situation, minister clarifies
30 Jun '19
2 min read
Akosombo Textiles Limited (ATL) is not in a situation of total collapse, Ghana’s minister of trade and industry John Alan Kwadwo Kyerematen assured parliament recently. The government had taken concrete action to restore ATL to its past glory as an income venue for the people in the Asuogyaman and surrounding communities, he said replying to a question.
A cabinet decision in June 2018 had granted approval to the ministry to take over and revamp the operations of the company under a transitional arrangement, while searching for a strategic investor to turn around the fortunes of the company. That plan is yielding positive results, he said.
The arrangement led to injection of GHC 17 million into the company’s operations at a subsidised interest rate by the Prudential Bank Limited, in addition to implementation of a comprehensive stimulus package, he said.
The company had upgraded its machinery, identified new export markets and improved it overall operational efficiency, Ghana’s media reports quoted the minister as saying.
The company will, by next September, install new and efficient biomass boilers that would reduce energy costs by half.
A new management team put in place is working to increase production from the current level of two million yards of fabric a year to five million yards.
The company is aggressively pursuing an international sales promotion and had established relations with trading companies in Nigeria, Benin, Brussels, the United States and the United Kingdom to step up exports, he added.
Established in 1967 as part of the Cha Textile Group of Companies, ATL employed 1,650 people in the 1980s. It currently employs 780 people and has spinning, weaving, dyeing, printing and finishing capacity, all at a single site. (DS)
A cabinet decision in June 2018 had granted approval to the ministry to take over and revamp the operations of the company under a transitional arrangement, while searching for a strategic investor to turn around the fortunes of the company. That plan is yielding positive results, he said.
The arrangement led to injection of GHC 17 million into the company’s operations at a subsidised interest rate by the Prudential Bank Limited, in addition to implementation of a comprehensive stimulus package, he said.
The company had upgraded its machinery, identified new export markets and improved it overall operational efficiency, Ghana’s media reports quoted the minister as saying.
The company will, by next September, install new and efficient biomass boilers that would reduce energy costs by half.
A new management team put in place is working to increase production from the current level of two million yards of fabric a year to five million yards.
The company is aggressively pursuing an international sales promotion and had established relations with trading companies in Nigeria, Benin, Brussels, the United States and the United Kingdom to step up exports, he added.
Established in 1967 as part of the Cha Textile Group of Companies, ATL employed 1,650 people in the 1980s. It currently employs 780 people and has spinning, weaving, dyeing, printing and finishing capacity, all at a single site. (DS)
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