The government has injected GH¢6.5 million into Ayum Forest Product Limited, a timber processing factory at Mim in the Asunafo North District, to revive the company.
The company, which has been adopted under the One District One Factory (1D1F) programme, was shut down in 2016 due to financial and operational challenges.
Following its adoption under the programme, it has become one of the 68 ailing companies that have received government support to revamp operations.
Inaugurating the company’s newly-constituted Board here at Mim on Monday, the Minister of Trade and Industry, Alan John Kojo Kyerematen, said the support was in line with the government’s commitment to decentralise industrialisation through assisting old and new companies in rural areas.
Chaired by Naja David, the five-member board includes Tony Elradi, Andrews Adjei-Yeboah, Henry Kwabena Kokofu, Estelle Afari Djan and Frederick Ebeneku-Anim.
He said the financial support would enable the company to pay staff salary arrears, retool the factory plants and machinery, pay part of debts owed to essential utility suppliers and have a working capital to finance critical operations.
He said it was the view of the government for companies that had their infrastructure in place but were facing financial challenges to receive the necessary support to create jobs and expand.
The company, the minister said, was strategically positioned to add value to the country’s resources and provide opportunities to the skilled labour force in the area.
Mr Kyerematen further said the company would help in the government’s effort to diversify the country’s economy to be export-led and thereby serve as a source of foreign exchange.
He noted that government would continue to provide managerial support and create the enabling environment for the company to operate effectively and generate revenue.
The board chair, Naja David, said the challenges affected more than 2,000 employees and that since the resumption of production in April this year, 690 of the workers had been re-engaged.
He, therefore, expressed gratitude to the government for the support, adding that the company had requested additional support from the Ghana EXIM Bank to complete the revitalisation programme, which would lead to the re-engagement of about 1,500 workers.
Source: Ghanaian Times