US$ 20 million capitalisation for David whitehead ...

US$ 20 million capitalisation for David whitehead reopening

Zim Now Writer

Following the coming in of a new shareholder, Chegutu could reclaim its former glory soon if textile manufacturer, new David Whitehead Textile Limited (DWTL) realizes its plans to reopen the textile giant, at one time the country’s largest textile company.

According to the new shareholder, Agri Value Chain Zimbabwe (AVCZ), the revival of the company will see it initially producing 10 million metres of fabric per year.

“Our investment in David Whitehead will see the company becoming an integrated cotton value chain corporate in line with the Government’s vision of value addition and job creation, with a presence across all the facets of the value chain, from farming right up to the ultimate value addition,” said ETG Parrogate chief executive officer Birju Patel.

The development will lead to job creation and production of fabric for the clothing industry.

At its peak, the company used to supply most of the country’s fabric before it was forced to close.

The reopening of the company follows its US$20 million resuscitation programme, which will be implemented in two phases, aimed at transforming Chegutu and Kadoma to world-class standards.

Following the collapse of the textile industry over the last two decades, the country is using only uses 30 percent of locally grown cotton, while 70 percent is exported as cotton lint.

Prior to its closure, DWTL was a critical part of the country’s industrial base, operating spinning and weaving facilities that produced fabric grades for next-tier industries.

Agri Value Chain, the new shareholder in DWT, bought out various minorities and now owns about 80 percent stake in the company.

The Ministry of Industry and Commerce is currently working on the Cotton-to-Clothing Strategy, which is expected to be finalised and launched this year, according to Nzenza.

At the turn of the millennium, Zimbabwe’s textile and garment production went through a challenging period that led to the closure of companies and job losses.

Cheap imports flooded the market, crippling the once flourishing sector.