Fine Spinners (Uganda) Limited has taken over management and assets of Phoenix Logistics in a move government says will revamp the operations of the factory.
The State Minister for Micro Finance Haruna Kyeyune Kasolo said garments company Phoenix Logistics has been running at a sub optimal level and needs to improve its production. The factory in Kampala’s Industrial Area was initially owned by three businessmen Gordon Wavamuno , Yuichi Kashiwada and Dr. Hian Tsin Tan.
At the handover on Monday, he revealed that government is committed to paying all outstanding salaries and terminal benefits for former employees of Phoenix Logistics.
Kasolo meanwhile directed the company owners to give the first priority to Ugandans while recruiting workers, promote cotton growing and increase on the country’s export volume.
“Investors of fine spinners are expected to argument the government’s efforts aimed at achieving increased production of textiles using Ugandan’s organic cotton to promote and increase exports of textiles to our regional and international markets. This will increase Uganda’s export earnings”, said Kasolo.
Fine Spinners launched their business in Uganda in 2014, joining a niche of garment producers that export to the international market.
In February last year, President Yoweri Museveni flagged off the 6-tonne first batch of Made in Uganda T-Shirts destined for Denmark made by Fine Spinners.
The Bugolobi-based garments industry has used locally grown cotton to make the T-shirts.