THE revamping of the Zambia-China Mulungushi Textiles in Kabwe is another fulfillment of campaign promises made by the Patriotic Front Government, President Michael Sata has said.
“As we promised during campaigns, I wish to inform you that after much effort, our Government has resolved to lease out the Zambia-China Mulungushi Textiles (ZCMT) facility to an investor who will renovate, invest in new machinery and operate the ZCMT integrated plant,” Mr Sata said.
The President said this on his latest Facebook post yesterday.
The project would entail investing a total of US$59 million in the next three years in the existing plant and in a denim plant with a 20 million-metre production capacity per annum.
In addition, the project would create more than 2,000 jobs, a boost to Kabwe, which has for long attracted a tag of a ghost town.
President Sata also said a cotton outgrower scheme comprising at least 10,000 members by year three of the business activities within Zambia would be established.
The scheme would include the provision of, among other things, extension services, a realistic market, and maintaining at least 60 per cent plant capacity utilisation from year three.
“Our Government will continue to promote the revitalisation and development of industry in order to create jobs and wealth for our people in line with the PF manifesto,” Mr Sata said.
The ZCMT is set to re-open seven years from when it shut, after the signing of a 12-year lease agreement with Mohammed Enterprises Tanzania Limited (MeTL) on Wednesday, aimed at reviving the operations of the defunct textile factory.
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.
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 since 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.
times of zambia