National Blankets engages investor
TEXTILE giant, National Blankets is engaging unnamed potential investors with the hope of them injecting about US$1,5 million into the business to unlock its order book.
The company’s production unit is closed with only the sales department open to sell the readily available stocks.
It resumed operations in early 2021 after managing to dodge liquidation having come out of judicial management after shareholders paid all the creditors their dues, which ran into millions of dollars.
The company had temporarily ceased production after being denied a tax clearance by the tax authority over an estimated $800 000 debt, which was later on settled.
However, the company did not resume full scale production as it was waiting for funding from the Government.
As other textile companies, National Blankets is eligible to benefit from the Special Drawing Rights (SDRs) meant for the industry retooling and capitalisation.
The company’s business development manager Mr Shepherd Nyambirai told Business Chronicle yesterday that as they are still waiting for the disbursement of the SDRs, they continue to engage potential investors, with some already showing interest in investing in the company.
“We are still in the process of accessing funds from the Government for the complete revival of the company.
“We are exhausting all possible ways of funding the project including getting potential investors. We have quite a number who have shown interest,” he said.
“We have missed the 2023 winter season but we got some stocks available mainly for public institutions including hotels and hospitals.”
He indicated that an estimated US$1.5 million capital injection will help revive the firm which is a strategic entity in terms of employment creation and a potential foreign currency earner.
The revival of the textile industry has been affected by an influx of cheap imports and the players keep on calling for the Government to put measures, which will promote the sector’s growth.
Access to cotton lint has also been a problem as producers prefer the export market to local players.
At its peak, National Blankets used to be one of the top employers in Bulawayo and contributed to exports.
Hopes are high that the company’s revival would amplify Bulawayo’s re-industrialisation and absorb more workers. — chronicle
