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Hawassa Textile Factory once again runs into rough weather

09
Jun '09
Hawassa Textile Factory and Arbaminch Textile Factory continue to be in eye of a storm as now the electricity service provider has severed the power connection of the Hawassa Textile Factory due to non-payment of arrears amounting to Br 5.5 million which has accumulated over a period of few months.

The previous controversy was regarding the Turkish lease owners suddenly leaving both the mills stranded by removing themselves from the operational liability of running the mills and in the process also left no money in the bank accounts of the both the mills in order that the mills can be run smoothly.

The electricity service provider has laid stake to a claim of Br 6.2 billion in unpaid arrears from the Arbaminch Textile Factory, which is located in Southern Ethiopia. Other than the electricity arrears, both the companies owe to different government departments millions of Birr in tax and other duties, unpaid since a long time.

The Hawassa Textile Share Company, which was set up in 1988, employs over 1,030 workers and has a capacity to produce 18,000 meters of textile fabrics per day.

Fibre2fashion News Desk - India


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