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

Pic: Shutterstock

Textiles | On 12th May 2021

Economic recovery under threat amid surging COVID cases: UN

While the global growth outlook has improved, led by robust rebound...

Pic: 2p2play / Shutterstock.com

Retail | On 12th May 2021

Retailers need to consider changes as US emerges from pandemic: NPD

Millions of new remote and hybrid-remote workers, kids returning to...

Pic: Shutterstock

Textiles | On 12th May 2021

Uzbekistan exported textile products worth $637.7 million in Q1 2021

Uzbekistan exported textile products worth $637.7 million to 54...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Opportunity now to reimagine processes & systems in a digital environment

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Textile Industry, Head honchos

Textile Industry
Head honchos

Consumer sentiment will be conservative after lockdown

Kurt Wedgwood,

Kurt Wedgwood

From design to raw material to fabrication and ultimately to delivery -...

Yawer Ali Shah,

Yawer Ali Shah

Synthetic colours and dyes were all the rage till the very first ban on...

Benedetta Terraneo,

Benedetta Terraneo

Miko Srl, a subsidiary of US-based Sage Automotive Interiors and a member...

Daniel Odermatt, Ventile

Daniel Odermatt
Ventile

Ventile is a registered trademark used to brand a special high-quality...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

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

Leave your Comments


May 2021

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


Advanced Search