Country’s last yarn maker sells off assets

One of the country’s leading textile companies, Karina Textiles, will this month auction its movable and fixed assets following its liquidation.

The closure of Karina Textiles is a sad development, says the CZI’s Henry Nemaire.
The closure of Karina Textiles is a sad development, says the CZI’s Henry Nemaire.

Karina, the country’s sole manufacturer of knitting yarn, was officially liquidated last week after being placed under provisional measures last year.

This marks the start of a bleak 2014 for business growth in the province and the country as a whole, as it comes after the closure of Zimbabwe Coffee Mill and Cairns Food last year.

The Confederation of Zimbabwe Industries national vice-president, Henry Nemaire, said: “We are very worried about these company closures. However, we have presented to government short-term and long-term solutions that they should act on to revive our manufacturing sector.”

Nemaire said some of the solutions were to put a hold on the increase of all utility charges, which were being suggested by the Zimbabwe Electricity Supply Authority.

“We also have the National Social Security Authority putting a heavy toll on companies,” said Nemaire. Mutare’s largest employer, Mutare Board and Paper Mill, closed in 2010 leading to the loss of thousands of full-time and contract workers.

Karina Textiles last year applied to the High Court for provisional liquidation, as the textile sector continued to struggle against cheap imports from China and under-capitalisation. In its prime, the company employed more than 1,000 people.

The minister of industry and commerce, Mike Bimha, said the government was also “looking at ways to regulate imports through tariffs to help local industries operate viably”.

Post published in: News
  1. Jason Ziyapapa

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