Mulungushi Textiles

By SYVIA MWEETWA –

THE moribund Zambia-China Mulungushi Textiles (ZCMT) in Kabwe is set to re-open, seven years after it was shut.

The new investor will in the next three months assess the condition of the machinery at the plant, before resuming operations at the textile plant that had been closed since June 30, 2007.

This comes after the ZCMT signed a 12-year lease agreement with Mohammed Enterprises Tanzania Limited (MeTL) on Wednesday afternoon in Kabwe which aims at reviving the operations of the defunct textile factory.

The new partner plans to invest US$10 million in resuscitating the operations and has targeted to create 2,000 jobs.

ZCMT Joint Venture Limited vice-board chairperson Rose Salukatula signed on behalf of Zambia and the Chinese partner, while Gulan Dewji signed on behalf of MeTL Group.

Ms Salukatula described the signing of the agreement as a historic moment for both countries.

She said it was the Government’s desire that the leasing of the factory provided for further investment and working capital to boost the cotton industry and promote economical and technical cooperation in the cotton industry, given the background that MeTL had in the cotton industry.

“One of Government’s main agenda has been that of job creation. It is for this reason that the Board of Directors from 2011 has been searching for an investor who would revive the operations of this textile industry,” Ms Salukatula said.

“I wish to express the Board’s gratitude to the shareholders, the Zambian Government and other share holders that have made it possible for us to achieve this.”

Ms Salukatula thanked the caretaker staff for their resilience and commitment to look after the plant even when the company was not able to pay their salaries.

She said and it was able to sign the lease agreement because the firm was still in a condition that could be taken over by another investor.

Mr Dewji, who is chairperson of MeTL, said he was happy to be part of the signing ceremony and disclosed that $10 million would be pumped in Mulungushi Textiles to resume operations.

He said more than 2,000 people were expected to be employed once operations began.

Mr Dewji, however, said the firm would diversify its operations by engaging in other activities such as cotton growing, among other areas of interest.

“I want to assure the Government of Zambia and the people of Zambia that we will perform to expectations of people and we will work hand in hand with you but this will require hard work by all,” he said.

He said his company was a reputable entity in Tanzania which had employed more than 20,000 people and that it was confident of contributing to job creation in the country.

Mr Dewji said the next three months would involve assessment of the equipment, which had been nonfunctional for many years. He said the firm would operate as MeTL Mulungushi Textiles.

The signing between ZCMT Joint Venture Limited and MeTL had an option for renewal after the initial 12 years elapsed.

ZCMT-JV Board member Emmanuel Chilubanama said it had been slightly over two years since the Board began deliberating on leasing out the textile plant and that it now promised to rekindle economic activity in Kabwe.

Since the Patriotic Front came into power there had been calls to reopen the textile plant.