Bulawayo textile company Archer Clothing expects production to rise by 40 percent by year-end with capacity utilisation increasing to a similar margin from the current 25 percent as new owners push to bring the company to full assembly.
Harare-based textile firm Paramount Garments bought the Bulawayo company after Archer creditors approved the takeover at the High Court, saving it from liquidation.
Production resumed last month but one of Archer’s 45 creditors is contesting the takeover.
“We also expect to employ 100 more people by the end of the year, as we continue improving production. This will add to the 205 whom we employed when we resumed operations,” Paramount managing director Jeremy Youmans said yesterday.
He said at least 50 percent of the merchandise that will come out of Archer will be exported.
“Paramount has been in the business of exporting products for the past 25 years and we hope to use this to seek markets for Archer. Before Archer closed, it also used to export so we just hope to reactivate the markets,” said Youmans.
Paramount has set aside $5 million to recapitalise the company over five years.
Archer was placed under judicial management in 2010 after failing to raise working capital and subsequently under provisional liquidation last year before the Paramount takeover.- The Source