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Business News of Saturday, 23 April 2016

Source: B&FT Online

Gov't secures GHC6m to revamp Volta Star Company

File photo: A textile company File photo: A textile company

The Ministry of Trade and Industry has secured a GHC6 million credit facility from the Export Development Agricultural and Industrial Development Fund (EDAIF) to ensure sanity and continuity in the operations of Juapong Textiles Limited, now known as Volta Star Limited.

EDAIF has therefore requested Volta Star to open an account with UT Bank for the release of 50% (GHC3million), with the remaining amount to be released in six months.

The money when released will help the company to re-open and undertake the following:

Pay a proposed 3 months out of the 13-month salary arrears owed to workers; pay for chemicals to run the factory; pay for capacitor banks’ instalment to save power usage and electricity costs; pay for 2 to 3 months’ worth of cotton from the Ghana Textile Printing Company (GTP); and also pay 50% of indebtedness to the Electricity Company of Ghana.

As part of measures to restructure and revamp the company, additional measures have also been put in place. These include:

That the wage bill of the company, which is a major concern, is being tackled seriously with the introduction of a shift system where temporary workers will work for 3 days and take 3 days off.

All workers above 60 years except critical staff will be retired immediately, while 50 ghost-names will be removed from the payroll through a cleaning exercise including photo identification.

In addition to these measures, government through the Ministry of Trade and Industry is seeking foreign investors to help revamp and strengthen the company. PricewaterHouse (PWC), the transaction advisor, has already identified five (5) companies that have expressed interest in Volta Star Company Limited.

The essence of engaging foreign investors is to inject capital, modern technology and improved managerial competencies so as to ensure more production and transform Volta Star into a giant enterprise that creates employment and enhances the people’s living conditions.

The Ministry of Trade and Industry is however appealing for the workers to cooperate with it to ensure the good plans which have been put in place work in the interests of themselves and the country as a whole.

The ministry wishes to thank all workers and the local community for their comportment, and to assure them that every effort will be made to transform Volta Star into a modern textile factory in the sub-region.