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Zambia's Mulungushi Textiles may soon resume operations
Jun '14
courtesy: Zambia Daily Mail
courtesy: Zambia Daily Mail
The Zambia-China Mulungushi Textiles (ZCMT) may soon resume operations under a new Tanzanian investor, reports Zambia Daily Mail.
During his meeting with Central Province permanent secretary Edwidge Mutale in Kabwe, Zambian Defence Minister Edgar Lungu said that terms and conditions for revival of the ZCMT have been agreed upon between the Government and the new investor.
Mr. Lungu said the revival of the ZCMT was not taken up immediately because the terms and conditions agreed upon must first be approved by the Attorney General, and then only an agreement can be signed and the process can be taken forward.
The Minister said the board of ZCMT is expected to meet before ZCMT commences operations, in June-end or thereafter. He added that the revival of the textile mill is important as it would create jobs.
ZCMT ceased operations in 2007-08 owing to financial problems, obsolete machinery, high cost of production, stiff competition with imported textile products from Asia, erratic supply of raw materials, and failure by clients to liquidate their debts.
The ZCMT set up in 1997 as a 66:34 joint venture between the China-based Qingdao Textiles Holding Group Company Limited and the Government of Zambia.
Subsequently, Qingdao Textiles invested US$ 24 million in ZCMT to develop the textile mill that was functioning earlier as Mulungushi Textiles.
During its closure, the ZCMT employed about 1,000 people. In the run-up to the elections in 2011, President Michael Sata had promised to reopen the textile factory to create more jobs for Kabwe residents.

Fibre2fashion News Desk - India

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