via David Whitehead resumes operations | The Herald 13 November 2014 by Martin Kadzere
David Whitehead Textiles resumed operations this week following four years of inactivity. The textile company restarted operations, beginning with a shorter working capital turnaround route of converting yarn into fabrics, then dyeing, printing and finishing of the fabrics, judicial manager Mr Knowledge Hofisi said yesterday.
“We resumed operations yesterday after the National Social Security Authority commissioned our boilers on Monday following extensive tests and inspections by the authority and independent assessors,” said Mr Hofisi.
“In the first phase, we are starting with the company’s traditional, standard and strong brands such as cotton workwear (heavy and light), cotton school prints, toptex prints among others. The resumption of operations is a profitable moment for David Whitehead Textiles Limited.”
David Whitehead was placed under provisional judicial management in December 2010 before confirmation of the final order in March this year. Mr Hofisi was appointed final judicial manager, taking over from Mr Wensely Militala.
The company used to produce at least 20 million metres of fabric per year while directly employing 3 000 workers and thousands in down and upstream industries.
Mr Hofisi said the company, which used to be the largest textile company in the country would move on to other popular lines like school poly or cotton shirting, school hartelle, java prints, knitgoods and socks during the second phase.
“We are starting with 60 to 70 looms (weavers) of the remaining 100 looms installed capacity. We will be producing an average of 450 000 metres of fabric per month,” he said.
He said the company had recalled some former workers.
“We will be employing about 330 people in this phase. We have re-engaged most of our trained, skilled and experienced manpower such that we hit the ground running.”
Mr Hofisi said the company had received tremendous support from suppliers who have seen it fit to support their vision and business plan. Similarly, the company also had tremendous support from “our old customers who are confident of the technical teams appointed by the judicial manager and have given us their business”.
“Although there will invariably be some teething problems since the plant has been idle for four years, we are very satisfied with the maintenance work carried out by our teams since May 2014 and we are confident we will meet our delivery schedules.”
Working capital was raised from the disposal of non-core assets in conformity with recommendations set out in the business rescue plan.
DW has a huge asset base that is being under- utilised and, in a trading environment where the cost of borrowing is prohibitive, the disposal of non-core assets will yield positive results.
“Debt capital is also being mobilised from local financial institutions managing the Distressed Industries and Marginalised Areas Fund,” Mr Hofisi said in July this year.
COMMENTS
So,where’s the cotton coming from?
It’s a step forward and I feel so pleased for the people of Chegutu. I felt excited when I read this.
From the surrounding areas. David Whitehead is not in Chegutu by accident. That’s where cotton is grown. Let’s praise progress. I feel so pleased for the people of Chegutu.
After this tremendous effort from all angels, the last thing people expect is to hear that there are ZANU PF greedy youth who have no knowledge of anything wanting to be employed aheard of trained professionals who will uplift production due to minimum aclimatisation needed. Or you will see, ZIMRA putting the company to start paying taxes and duties for the importation of spares and other necessities. Yet while the company was struggling to be afloat no one ever came to their rescue. It would be necessary for almost everyone in the government to look at the pligth of the former workers and share holders to allow them recapitalise and work with much freedom from taxes and political interference. All management to put in place all their knowledge and also management to restrict remunerations to limited level. In fact they should inject a portion of their remuneration as share options in the company to instill a spirit of ownership.
After this tremendous effort from all angels, the last thing people expect is to hear that there are ZANU PF greedy youth who have no knowledge of anything wanting to be employed aheard of trained professionals who will uplift production due to minimum aclimatisation needed. Or you will see, ZIMRA putting the company to start paying taxes and duties for the importation of spares and other necessities. Yet while the company was struggling to be afloat no one ever came to their rescue. It would be necessary for almost everyone in the government to look at the pligth of the former workers and share holders to allow them recapitalise and work with much freedom from taxes and political interference. All management to put in place all their knowledge and also management to restrict remunerations to limited level. In fact they should inject a portion of their remuneration as share options in the company to instill a spirit of ownership. David whitehead is the backbone of Kadoma, so if it will grow, there will be long term benefits to all. However when it was going under the person who suffered most were Kadoma residents, employees and the shareholders.
If Hofisi has stated that the company has restarted he is smoking some good stuff.
If he is the Judicial manager he should not make false statements