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Tolling agreement saves VSTL
 
Posted on: 30-Jun-2013         Source: GNA
 
 
 
A tolling agreement between Volta Star Textiles Limited (VSTL) in Juapong and Tex Styles Ghana (TSG), in 2011 saved the factory from collapse, Mr Evans Adzagbo, Technical Director of VSTL revealed.

Briefing Nii Laryea Afotey Agbo, Volta Regional Minster during a familiarisation visit to the factory, he said under the tolling agreement, TSG provides the factory with cotton for production, the cost of which is deducted from the price of greybaft sold to TSG.

Mr Adzagbo explained that in 2011, the factory ran out of cotton, its main raw material and had to strategise to be in business.

He said with the tolling agreement and internally generated funds, the factory was able to keep its head above water in the past two years.

Mr Adzagbo said the factory is now capturing the attention of players in the ECOWAS market and is hopeful it would soon start making profits and employ more hands.

"Though VSTL is operating at 30 per cent of its plant capacity, our quality products are our strength," he stated.

Mr Adzagbo said currently, the factory has a workforce of 620 and the only company apart from Diamond Cement at Aflao, which pays huge tax to government in the Region.

He appealed to government to recapitalise the factory and replace its obsolete machines to make it more competitive.

Nii Afotey Agbo reiterated government’s commitment to make the factory vibrant and beneficial.