Home / Knowledge / News / Textiles / Govt takeover of Volta Star Textile spells doom
Govt takeover of Volta Star Textile spells doom
03
May '10
The government owned Volta Star Textile Ltd. (VSTL) of Ghana has not been able to attain commercial orders since the time it has been purchased by the Government of Ghana from its former partners Vlisco Ghana Ltd.

This is despite the fact that, the company has all the important plants and equipments, well-skilled technical staff, a ready market for finished goods and the capacity to generate more employment, both directly and indirectly.

Currently, the company has a standing order of 19 million yards of grey fabric per year (a basic material for manufacturing textile prints) from Ghana Textile Manufacturing Company (GTMC), but it cannot produce the required quantity of this material, as it lacks sufficient amount of working capital, thereby forcing GTMC to buy the same from some other place.

The company is now running at 30 percent of its manufacturing capacity with 300 workers. After being taken over by the Ghanaian government, the company had received GHc 3 million by the Export Development and Industrialization Fund (EDIF), informed Evans Agyagbo, Head of the Technical Committee overseeing affairs at the factory.

He further informed that, the factory can produce 65,000 yards of grey fabric in a day or 26 million yards in a year, if it works for 24 hours a day at its full capacity. But currently it is working at 30 percent of the capacity, for just 8 hours a day thereby, representing only 8 percent of the plant's efficiency, which provides an output of 7,000 yards of grey fabric in a day.

It requires GHc 14 million in recapitalization to improve the working situation at the factory and make it fully operational, said the Chairman of the technical committee. Furthermore, he also demanded the government to set up a management board and a substantive management team for the company.

Deputy Trades Minister, Mahama Ayariga, during his recent visit to the textile factory, assured the management about the government's determination to revive the textile industry, so that the country could benefit from its great viability.

Fibre2Fashion News Desk - India


Must ReadView All

Two slabs of GST will affect Bengaluru garment units: SIGA

Apparel/Garments | On 23rd Jan 2018

Two slabs of GST will affect Bengaluru garment units: SIGA

The South India Garment Association (SIGA) has voiced its concern...

US FTC updates textile rules to drop obsolete requirement

Textiles | On 23rd Jan 2018

US FTC updates textile rules to drop obsolete requirement

The US Federal Trade Commission has eliminated an obsolete provision...

Indian textile industry at inflection point: Report

Textiles | On 23rd Jan 2018

Indian textile industry at inflection point: Report

The textile and apparel sector of India is at an inflection point...

Interviews View All

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search