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Zambia based Mulungushi Textiles set to restart again
Aug '14
The defunct Mulungushi Textiles mill in Zambia is set to get a new lease of life after a Tanzanian investor signed an agreement to restart the mill.

Tanzania based Mohammed Enterprises will invest US $10 million into the mill to restart the textile mill, which closed down in 2007-08 due to financial problems.

Mohammed Enterprises Chairman, Gulam Deiji signed the lease agreement on behalf of Mohammed Enterprises while Ministry of Defence Permanent Secretary, Rose Salukatula signed on behalf of government.

Earlier on June 7, quoting the Zambia Daily Mail, fibre2fashion had reported that Mulungushi Textiles may soon resume operations under a new Tanzanian investor.

Ms Salukatula called the signing of the agreement as a historic moment. She said that the government had committed itself to restarting the closed mill, which was the reason that since 2011, they were searching for an investor to restart the mill.

Ms Salukatula expressed her thanks to the caretaker staff for their commitment to look after the mill despite the fact that the mill was not paying their salaries, which was the main reason that the government was able to find a new investor.

Gulam Deiji said that the mill when fully operational would provide jobs to around 2000 people and that it would now be renamed as Mohammed Enterprises Mulungushi Textiles.

During its closure, the mill employed about 1,000 people.

Fibre2fashion News Desk - India

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