AA factory worker of ATL at work
THE AKOSOMBO Textiles Limited (ATL) is pursuing a promotion that will see its products exported to Nigeria, Benin, Brussels, the USA and the UK.
The company has established relations with trading companies in the aforementioned countries to step up export sales, and promote made-in-Ghana textiles and clothing.
Alan Kwadwo Kyerematen, Minister of Trade & Industry, disclosed this on Wednesday in Parliament. He was briefing the House on the state of affairs at ATL, especially recent rumours that ATL faced the risk of collapsing anytime soon.
The minister said
government had taken concrete actions to restore the ATL to good old days when
it provided employment and income for people in the Asuogyaman and surrounding
communities.
He added that ATL was also enjoying a three-year
tax exemption of value added tax (VAT), import duty waiver and concession on
raw materials imports and deferred VAT payments on imports to improve its cash
flow.
Thomas Ampem
Nyarko, Member of Parliament (MP) for Asuogyaman, requested an answer from the
minister on “any plans for saving the ATL from total collapse.”
Mr Kyerematen said a Cabinet decision in June
2018 to allow the Trade Ministry to take over and revamp ATL under a
transitional arrangement was progressing steadily.
Following that, GH¢17 million was invested into ATL at a subsidized interest rate by Prudential Bank Limited, including the execution of a comprehensive stimulus package.
This helped ATL to upgrade its machinery, identify new export markets and improve its operational efficiency.
“The company is also introducing cost-saving measures to regain competiveness,” Mr Kyerematen said and assured Ghanaians that the company would install new and efficient biomass boilers soon to reduce by half energy cost of the company.
Furthermore, a new management put in place is working to increase production from the current level of two million yards of fabric a year to five million yards, while more engineering and sales staff have been recruited to take up senior and supervisory roles.
Established in 1967 as part of the Cha Textile Group of Companies, the ATL, with an initial workforce of around 500, employed 1,650 people at the peak of its operations in the 1980s.
It currently employs 780 people and has spining, weaving, dyeing, printing and finishing capacity.
It is the single largest vertically integrated textile factory in Ghana that uses cotton from Northern Ghana to produce the yarn, grey-baft fabric and mercerised calico which are processed, dyed, printed and finished into prints for the local and export markets.
Its four main brands include ATL, ABC, Treasure and Inspiration.