Merlin readies to resume production

Merlin readies to resume production
Published: 23 January 2018 (332 Views)
TEXTILE manufacturing concern, Merlin has stockpiled 25 tonnes of yarn at its factory in Bulawayo as it prepares to resume production next month.

The company suspended production long back and has been under judicial management since 2012.

Early this month, the company said it was embarking on a gradual re-employment of former workers underpinned by a business turnaround strategy following the injection of $2.1 million minimum working capital.

In the long-term, the company requires at least $30 million to operate at full capacity.

The $2.1 million working capital was sourced from one of Merlin's creditors and under the business revival plan the working capital will be for carrying out minor repairs and maintenance on selected machinery and equipment.

In an interview yesterday, the firm's workers committee chairman Mr Nyasha Mugurasave said maintenance works of the factory machinery were in progress and would be complete in the next few weeks.

"Maintenance works started a week ago and by the second week of February we would have finished the exercise before actual production resumes mid next month.

"In preparation for production, we have a 25-tonne stockpile of yarn that we secured from a supplier in Harare," he said.

Yarn is one of the critical raw materials in the textile industry.

As part of its market re-penetration, the manufacturing concern would start by producing samples to solicit orders.

"We have since received one of our biggest orders from Harare and as we resume production, we will be producing for that customer," said Mr Mugurasave.

Before its closure, the textile company produced high quality textile products like napkins and towels.

In line with modern fashion trends, Merlin would now be producing high demand products such as face towels, morning gowns, bed sheets, baby carriers, bath mats, wrappers and kitchen towels.

The textile firm's judicial manager Mr Cecil Madondo would not be drawn into giving more details yesterday as he was in a meeting but only said:

"There is some activity going on at the factory right now."

Mr Madondo is on record saying the employment process at Merlin would be gradual starting with former workers as production will be on a small-scale.

One of the oldest textile giants in Bulawayo, Merlin was established in the 1950s and used to employ more than 1 000 workers.

As it is resuscitated, it is envisaged that the textile firm would tap into the Special Economic Zones model following its proposal to establish a ginnery expected to add impetus to the firm's survival.

Under the Special Economic Zones (SEZs) initiative, which is in sync with the value addition and beneficiation thrust under Zim-Asset, the Government has earmarked Bulawayo for industrialisation.

Recently, the company postponed an auction sale of non-core assets (not in use) in Bulawayo pending an approval from the High Court.

In terms of Section 307 of the Companies Act, the judicial manager has to seek approval from the High Court to conduct an auction sale.

- chronicle

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

White Zanu-PF aspiring MP intensifies campaign

by staff reporter | 24 February 2018 | 235 Views

MLF denounces Bulelani and his gang of Judas Iscariots and Liars

by Andrea Sibanda, MLF Secretary General | 24 February 2018 | 98 Views

ULoyiko to be showcased at Zabalaza theatre festival

by Thulani Nkala | 24 February 2018 | 68 Views

David Whitehead revival hopes high

by Staff Reporter | 24 February 2018 | 117 Views

Matabeleland South pupils fail to get secondary school places

by Staff Reporter | 24 February 2018 | 111 Views

Khupe rejects Chamisa

by Staff reporter | 24 February 2018 | 136 Views

ZEC wins BVR kits tender challenge

by Staff reporter | 24 February 2018 | 92 Views

Chamisa, Mudzuri kiss and make up

by Staff reporter | 24 February 2018 | 109 Views

Footballer drowns at lodge swimming pool in Bulawayo

by Staff reporter | 24 February 2018 | 89 Views

Madinda looks for spark in ZNA clash

by Staff reporter | 24 February 2018 | 84 Views

Mapeza safe!

by Staff reporter | 24 February 2018 | 75 Views

Amnesty International to engage Mnangagwa

by Staff reporterq | 24 February 2018 | 80 Views

Woman kills hubby

by Staff reporter | 24 February 2018 | 58 Views

Two die in road accident

by Staff reporter | 24 February 2018 | 66 Views

Perrance Shiri taken to court

by Staff reporter | 24 February 2018 | 81 Views

Bulawayo tops social media usage

by Staff reporter | 24 February 2018 | 60 Views

Khupe in the cold

by Staff reporter | 24 February 2018 | 169 Views

'My hubby is a gold digger'

by Staff reporter | 24 February 2018 | 75 Views

Mugabe demands his pension from Mnangagwa

by Staff reporter | 24 February 2018 | 123 Views

Mnangagwa is a mafia obsessed with power

by Staff reporter | 24 February 2018 | 67 Views

Zanu PF youths shocked Mugabe was ousted

by Staff reporter | 24 February 2018 | 86 Views

A tale of three vice presidents

by Tondorindo Chinehasha | 23 February 2018 | 291 Views

Nust Graduate wins beauty pageant

by Jefferson Metha | 23 February 2018 | 172 Views

It's time for rural cemeteries

by Thomas Murisa | 23 February 2018 | 208 Views

Mugabe warned: Shut up!

by Stephen Jakes | 23 February 2018 | 933 Views

2017 O-Level pass rate down to 26.35%

by Ndou Paul | 23 February 2018 | 307 Views

The mystery of the missing MDC-T constitution

by Joe Devanny | 23 February 2018 | 204 Views

Khupe snubs Chamisa overture

by Staff reporter | 23 February 2018 | 376 Views

Mutambara warn MDC-T members

by Staff reporter | 23 February 2018 | 659 Views

Jonathan Moyo taunts 'hopeless charlatan'

by Staff reporter | 23 February 2018 | 445 Views

Cheated wife cuts off man's sex organs

by Punch.com | 23 February 2018 | 214 Views

Cheating man in juju scare

by Staff reporter | 23 February 2018 | 265 Views

Headmaster, wife demand $145,000 from school

by Staff reporter | 23 February 2018 | 211 Views

Woman faces $10 000 adultery lawsuit

by Staff reporter | 23 February 2018 | 160 Views

Chamisa salutes Mnangagwa's govt

by Staff reporter | 23 February 2018 | 265 Views

Chamisa blasts the police force

by Simbarashe Sithole | 23 February 2018 | 1070 Views

The social media president

by Charles Munganasa | 23 February 2018 | 154 Views

Four incredible gambling stories

by Agencies | 23 February 2018 | 125 Views