Southern range Nyanza ltd. will inject $5m (about sh9b) in a modern weaving facility to complete a three-phase rehabilitation and modernization programme that began in 2001.
The investment would enable setting up of modern machines like the Japanese Toyota and Germany Sulzer looms to enhance quality and output.
Installation of the machines, which are in transit, would start in January to enable commissioning in February, which will replace the old weaving machines with new ones.
“The new facility will enhance quality and efficiency of weaving. We expect the present weaving capacity of 12 million metres annually to double to 30 million. The firm will also increase her market locally and internationally under the African Growth and Opportunities Act (AGOA) and the European Union,” the managing director, Viren Thakker, said
From 2001-2003, $2.6m (sh4.7b) was invested in the first phase of modernization.
This is critical not only for Uganda but for the Common Market for Eastern and Southern Africa because come September 2007, garment exporters from sub-Saharan Africa will source for fabrics from all over Africa to continue exporting under AGOA. This investment is strategic because of its timing to produce internationally acceptable quality fabrics.
Thakker said that would create new jobs and also almost double Nyanza’s lint cotton consumption of 10,000 bales annually.
By Kisibo Jackie
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