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Chinese still mum over reviving joint venture textile factory
28
Apr '11
Recently the Zambian government had sent a proposal over the possibilities of refurbishing and reviving the Zambia-China Mulungushi Textile factory, to which it is still awaiting a nod from China.

The governments of the two countries are still in discussion over the proposal to revive the factory in order to take advantage of the Africa Growth Opportunity Act (AGOA), which entails duty-free exports to the US markets.

According to the Zambian government, the plant needs a complete overhauling of plant and machinery, so that it is able to compete in the fiercely competitive international and US markets.

A Chinese team had visited and inspected the plant in 2009, raising hopes in the local community that the factory may start again.

At its peak, the factory employed over 2,000 workers and has now been closed for over five years.

Editor's note –
The revival of the textile factory will mean employment for the people in the region and also boost textile and garments exports to the US under the AGOA act.

Recently, the current head of AGOA in Africa had lamented that 96 percent of exports under AGOA were done from only four countries.

Fibre2fashion News Desk - India

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