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Biggest textile mill may reopen its doors

20
Jun '09
The closed Mulungushi Textiles in Kabwe, which is a joint venture mill between Zambia and China, may once again open its doors, following a technical reassessment by a Chinese technical team.

Giving out details, the provincial minister, Ackimson Banda said that he was hopeful that the mill would restart once the technical report is released and implemented and also announced a intent to declare Kabwe as a tax free zone.

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.

Fibre2fashion News Desk - India


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