THE Zambia-China Mulungushi Textiles (ZCMT) in Kabwe is set to re-open, seven years after being shut.
This is after the ZCMT signed a 12-year lease agreement with Mohammed Enterprises Tanzania Limited (MeTL) on Wednesday afternoon in Kabwe, aimed 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 some 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 looking after the plant even when the company was not able to pay their salaries and that it was able to sign this lease agreement because the firm was still in a condition that it could be taken over by another investor.
She added that the Board of Directors was aware of the many difficulties that went with running the textile industry, and in an event that MeTL faced any difficulties in the running of the textile company.
Mr Dewji, who is chairperson of MeTL, said he was happy to be part of the signing ceremony and that $10 million would be pumped into Mulungushi Textiles to commence 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 with you hand-in-hand and make sure that employment not only in the textile industry is met, but this will require hard work by all,” he said.
He said his company was a reputable company 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, considering it 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.
The textile plant has been closed from June 30, 2007.
ZCMT-JV Board member Emmanuel Chilubanama said it had been slightly over two years since the Board began deliberating on leasing out Mulungushi 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.
In as much as this move seems comendable on paper,i can foresee it bound to fail because these so called investors who have been leased this textile are not serious ones.metl yes is a big company in twnzqnia dealing mainly in household commodities,groceries to be precise.i suspect like there friends from tanzania who bought ktz and later stripped it of all machinery and took to tanzania under the guise of taking for repairs these crooks might be trying to pull a similar one,this venture wont work trust me.
these are the minds who are always on the opposing side, why can’t you give such investments a chance?? so you want the machinery at the plant just to be lying idle and become obsolete. typical of Upnd cadres, always opposing anything good by the mighty PF govt
I think I will just have to vote for PF. They are for sure trying help our people. I hate PF but I just have face facts. Well done for this.
*twnzqnia meant to be tanzania above.ka nokia ukushupa paku taipa
Enormous step by govt or whoever.
At least cotton farmers will have a market for their cotton and seed. This will definately contribute to economic development through cotton yarn, cooking oil, animal feed and cloth.
GOOD COMMENT BROTHER/SISTER. AT LEAST YOU ARE THINKING OUTSIDE THE BOX. YOU HAVE THOUGHT WIDER THAN JUST AROUND MULUNGUSHI TEXTILES BY INCLUDING THE FARMERS IN YOUR RANGE OF THOUGHT. YOU HAVE SEEN HOW ITS OPENING WILL CREATE MORE BUSINESS FOR FARMERS. IT’S A RIPPLE REACTION- IT WILL ALSO CREATE MORE BUSINESSES FOR THOSE WHO DEPEND ON DRAPERY. IT WILL ALSO TRIGGER INNOVATION IN CLOTH DESIGN INDUSTRY. IT WILL ALSO MAKE CLOTHING CHEAPER. THE COMPANY CAN ALSO DIVERSIFY TO MAKING COMMERCIAL (HOTELS, OFFICES, THEATRES, ETC) AND DOMESTIC CURTAINS. THEY CAN ALSO START MAKING CARPETS. THE LIST IS ENDLESS.
Bravo! Bravissimo!! Congratutations!!! Keep it up!!!!
Thanks to the Zambia Government and MeTL of Tanzania. Atleast we know a number of Kabwe residents will get employed and poverty levels will be reduced.
More jobs for our youth and cotton farmers will be smiling all the way.
Well done PF Govt.