The New Guyana Pharmaceutical Corporation has acquired the old Sanata Textile Mill complex on a long-term lease. In a joint venture with a Chinese company, it will invest US$30 million ($6 billion) in various industrial activities, including textile milling, based on the findings of a feasibility study.
The establishment is now called Queens Atlantic Industrial Estate after government approved a lease to a new investor some time last year. About two years ago, government had signalled its intention to invite private investors to run the company.
The cotton mill, set up several decades ago, has experienced mixed fortunes.
Head of the Privatisation Unit Winston Brassington confirmed with this newspaper that after bids closed last year without any tenders being received for purchase of the complex as advertised, the government through the Privatisation Unit received a proposal for a lease.
He said that based on a recommendation from the Board of the Privatisation Unit to Cabinet, the proposal from the New GPC, involving a significant investment was accepted by government. Brassington said the proposal comprised a diversified plan covering various industrial activities.
He told this newspaper that a significant amount of upgrading work has been taking place in preparation for the activities. A visit to the area revealed that many of the buildings were being “cleared” of decrepit material with a view to refurbishing them.
Executive Chairman of New GPC Dr Ranjisinghi Ramroop told this newspaper that his company was in a joint venture with a Chinese counterpart and the resources being invested were US$30M ($6 billion). He said that in the first phase of operations – commencing later this year – 600 people will be employed and this number is expected to rise to 1,200 when everything is on stream.
He said the company put in the bid for a long-term lease after the property had been advertised for sale for about a year, with no takers. He suspected that investors were hesitant to take up the offer because of the frequent acts of vandalism in the complex, which have reduced most of the machinery on the site to waste. He said that the machines were stripped of their components to be used as scrap metal, an ongoing problem faced by the electricity and telephone companies.
According to Ramroop, work is ongoing to “gut” the old buildings in preparation for renovation works. He said a fuller disclosure of the company’s plans would be made in a matter of weeks.
The company started out as an investment by the Government of China, then it was privatized. About three years ago, it was returned to government to prepare it for a private investor.
Guyana, in 1993 received assistance from China in the sum of US$315,000 for the Sanata Textile Limited Technical Assistance Project.
In February 2005, then Minister of Foreign Trade and International Cooperation Clement Rohee and then Chinese Ambassador to Guyana Shen Quing signed the agreement for the handing over of the equipment and raw material for textile mill.
