Tanzanian investor to revamp the Mulungushi textile in Kabwe

YarnsandFibers News Bureau, 2014-07-31 17:20:00 - Zambia

Related Keywords: joint venture, lease agreement, Mohammed Enterprises, Qingdao textile, Tanzanian investor, Zambia Ministry of Defence, Zambia-China Mulungushi textiles

Zambia
Tanzanian investor to revamp the Mulungushi textile in Kabwe

Zambai-China Mulungushi Textiles run under a joint venture between Qingdao Textile and Zambia Ministry of Defence, but the partnership fell through forcing the company to close down in 2007 has found a Tanzanian investor who has expressed interest to revamp the Mulungushi Textiles in Kabwe.
 
The government wanting to lease the firm was looking for an independent investor who will operate it profitably on a large scale basis.
 
A lease agreement has been signed with the Tanzanian investor, Mohammed Enterprises, which is expected to inject over 10 million United States dollars in the defunct plant.
 
Ministry of Defence Permanent Secretary, Rose Salukatula signed the lease agreement on behalf of government, while Mohammed Enterprises Chairman, Gulam Deiji signed on behalf of his group of companies.
 
The government is optimistic that the re-opening of the Zambia-China Mulungushi Textiles will resuscitate the economy of Kabwe.
 
The major stumbling block in revamping the firm was the lack of cooperation from the Chinese Government which has been contacted several times by their Zambian counterparts on the way forward.
 
Zambia owns 34 per cent shares in Zambia-China Mulungushi Textiles while the Chinese Government has a 66 per cent stake in the firm.
 
Since the Chinese did not show any interest in reviving the firm, the Government established a technical committee to lease the property so that another investor can operate it.
 
The new investor would be re-naming the company as Mohammed Enterprises Mulungushi Textiles and would be employing at least 2-thousand people when fully operational.
 
At its peak, the firm employed more than 2,000 people on permanent basis and engaged several others as casuals, thereby contributing greatly to the economic wellbeing.

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Related Keywords: joint venture, lease agreement, Mohammed Enterprises, Qingdao textile, Tanzanian investor, Zambia Ministry of Defence, Zambia-China Mulungushi textiles

Zambia
Tanzanian investor to revamp the Mulungushi textile in Kabwe

Zambai-China Mulungushi Textiles run under a joint venture between Qingdao Textile and Zambia Ministry of Defence, but the partnership fell through forcing the company to close down in 2007 has found a Tanzanian investor who has expressed interest to revamp the Mulungushi Textiles in Kabwe.
 
The government wanting to lease the firm was looking for an independent investor who will operate it profitably on a large scale basis.
 
A lease agreement has been signed with the Tanzanian investor, Mohammed Enterprises, which is expected to inject over 10 million United States dollars in the defunct plant.
 
Ministry of Defence Permanent Secretary, Rose Salukatula signed the lease agreement on behalf of government, while Mohammed Enterprises Chairman, Gulam Deiji signed on behalf of his group of companies.
 
The government is optimistic that the re-opening of the Zambia-China Mulungushi Textiles will resuscitate the economy of Kabwe.
 
The major stumbling block in revamping the firm was the lack of cooperation from the Chinese Government which has been contacted several times by their Zambian counterparts on the way forward.
 
Zambia owns 34 per cent shares in Zambia-China Mulungushi Textiles while the Chinese Government has a 66 per cent stake in the firm.
 
Since the Chinese did not show any interest in reviving the firm, the Government established a technical committee to lease the property so that another investor can operate it.
 
The new investor would be re-naming the company as Mohammed Enterprises Mulungushi Textiles and would be employing at least 2-thousand people when fully operational.
 
At its peak, the firm employed more than 2,000 people on permanent basis and engaged several others as casuals, thereby contributing greatly to the economic wellbeing.

0

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Related Keywords
joint venture lease agreement Mohammed Enterprises Qingdao textile Tanzanian investor Zambia Ministry of Defence Zambia-China Mulungushi textiles

 
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