BULAWAYO – Troubled textile firm, Security Mills has secured a $200 000 loan from the Distressed Industries and Marginalised Areas Fund (Dimaf), which has improved its operations, the judicial manager said on Monday.
The company, was placed under judicial management in 2010 by the High Court in Bulawayo after accruing debts of nearly $5 million.
Tapiwa Chizana told The Source that the company had received the money “recently” and that part of the funds had been used to import special yarn from India.
“We got Dimaf funding and we imported some yarn from India.
“We are now in the process of converting it into fabric and clothing.
“The yarn was bought in the first half of the year,” Chizana said.
He said the loan had “significantly” improved operations of the company, which had started recording marginal profits in the past few months.
“We have started recording some profits for the first time in five years.
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“We have also used some of the Dimaf cash to buy fabric locally, pay wages and meet other operational costs,” he said.
“The company has also been gradually re-employing its former workers.”
Over 1 000 workers lost their jobs when the company reduced operations. – The Source
