The government has said that it is looking for US$100 million to recapitalize the ailing Mulungushi Textiles in Kabwe District.
Minister of Defence, Ambrose Lufuma said government has faced problems in revamping the Zambia China Mulungushi Textiles factory due to compelling challenges.
Addressing Journalists in Chongwe after the handover of three China Aided Milling plants, Mr Lufuma said the biggest challenge the UPND Administration has faced in revamping Mulungushi Textiles has been the debt stock.
“You need a lot of money to recapitalize, and so because we had a heavy debt stock, we couldn’t go in and borrow” said Mr Lufuma.
The Defence Minister explained that government wanted to borrow funds from China to recapitalize the factory but had to wait until the debt restructuring agreement was agreed with concerned stakeholders.
Mr Lufuma said following the debt restructuring agreement with China, government is now ready to borrow from China to inject capital into the Mulungushi textiles.
The Defence Minister said current machinery at the factory has been assessed and that additional machinery has been identified and will be procured to ensure that the factory starts operating.
“What is remaining is to get that money, buy the machinery and we are ready to go” said Mr Lufuma.
He said cotton is ready to be supplied to the factory following government’s decision to finance cotton out grower schemes to provide raw materials to Mulungushi Textiles.
Mr Lufuma said the UPND administration is working round the clock to ensure that it sticks to its campaign promises given to the people of Kabwe that the Mulungushi Textiles would be recapitalized so that the facility starts producing and creates employment for the locals.