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Ghana govt urged to waive its financial interest towards revival of GIHOC

YarnsandFibers News Bureau 2016-03-31 17:00:00 – Africa

The divested GIHOC Jute Factory stands to significantly benefit government if the jute sacks manufacturing company eventually returns to full scale production, especially in cocoa production, said Kumasi Manhyiahene, Nana Akwasi Prempeh and hence appealed to the government to waive its financial interest in form of its assistance towards a successful revival of the company.

Nana Prempeh, noted that the divested state company requires so much capital to bounce back to operation not only to produce sacks for the cocoa production sector, but to create more jobs for the youth to boost, the national economy.

The company is currently in the process of revival following the divestiture of its ownership from government to Zoomlion Ghana Limited under a new name 'Jute Mills Ghana Limited'.

The lease for the original GIHOC Jute Fibre Company is due to expire in July this year, for which the new managers are re-negotiating with the Manhyia Palace for its renewal.

The company finally collapsed in 1991, after which it was put on the divestiture. Several attempts to revive the company in the past proved unsuccessful until management of Zoomlion Ghana Limited bid for it.

During the dormant period of the company, the Ghana Cocoa Marketing Board had to import the jute sacks from neighbouring countries at the expense of the local currency.

The Chief of Staff, Julius Debrah, has already visited the project site to learn at first hand the progress of work to revive it.

The revived Jute Mill Ghana Limited is expected to resume operations by the end of the first quarter of this year.

So far, some significant amount of money has gone into the refurbishment of the company, with the arrival of new machinery very soon.

Some of the old machines which are still usable will also be fixed with new parts to make them workable again.

After touring the site of the company, Nana Prempeh blamed the collapse of the original jute factory on both the government and the workers for their negative attitude to duty and maintenance.

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