Mulungushi Textiles to be reopened after technical evaluation

31 Mar '09

2 min read

The Zambia-China Mulungushi Textiles Joint Venture Ltd., Kabwe, Zambia, was set up in a joint collaboration of the Zambian and Chinese governments in 1997 and is the largest textile company in Zambia.

This company was set up by rehabilitating a closed industrial sick mill with funds infused by the Chinese government and also by sending personnel to manage the textile mill which employs 2,000 workers.

The textile mill has a capacity to produce 1,800 tons of cotton yarn, 17 million meters of various fabrics and 100,000 pieces of garments every year. Over the years the mill went in to backward integration and also set up cotton ginneries.

But due to many reasons the textile mill could not survive the onslaught of the rapid economic changes in the economic environment and lack of funds to run the mill as well as not being able to take advantage of favourable policies.

But now both the governments have resolved to revive the mill, which will ensure jobs for the 2,000 workers as well as cotton farmers who were dependent on the mill for their livelihood.

A team of Chinese textile experts will visit the country to technically evaluate the possibilities of reviving the mill, which is also expected to also rejuvenate the economy of Kabwe.

Fibre2fashion News Desk - India

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