AILING David Whitehead is set for resuscitation by Parrogate subsidiary, Agri Value Chain (AVC), which will inject US$20 million into the textile company for its turnaround strategy.
It is expected that the turnaround strategy will create 1 000 jobs. The move comes after AVC acquired 100% shareholding in the company which was under reconstruction until April 2022.
Speaking to NewsDay at the AVC manufacturing plant in Chegutu yesterday, Pure Oil Industries, AVC and David Whitehead Textiles chairperson Pradyumn Kumar Ganediwal said 95% of the fabric requirements in the country were being imported.
“This David Whitehead project will be for import substitution and value-addition to revive the entire textile industry value chain. The major focus is to be a supplier of raw materials to the local clothing companies and create jobs.”
Ganediwal said the company would target Zambia, Malawi and other neighbouring countries for exports in the short term.
“Most countries are not producing textiles and so we have a market.
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“The first phase of the turnaround plan is expected to see a US$20 million investment with the expected output being 10 million metres of fabric per year,” he said.
Since the removal of the company from judicial management, focus has been on turning the plant into a profitable operation.
The spinning plant at Kadoma and the fabric manufacturing plant in Chegutu are antiquated and as a result, the company has invested in state-of-the-art machinery.
The new machines are expected to arrive in the country before the end of the year, while commercial production is set to commence in May next year.