Mozambique Cotton Manufacturers (MCM) has acquired the Riopele textile factory, which has been closed for ten years, with plans to reopen the facility in March.

MCM, a consortium formed by the Mozambican company Intelec Holdings and Portuguese companies Mundotextil, Mundifios and Crispim Abreu, has to date invested around US$12m in the facility. Total investment is expected to reach around $40m. 

The investment will see the Marracuene-based factory undertake spinning, weaving and dyeing, producing yarns and fabrics.

Haje Mason, director general of Intelec Holdings, said the consortium is working to inaugurate the plant in March. It will employ around 200 workers initially, with this number expected to rise with the introduction of a 24-hour a day work scheme.

The number of indirect jobs expected to be created by the project will likely reach around 10,000, according to the Minister of Industry and Trade, Armando Inroga.

The raw material processed by MCM will be sourced from domestic cotton producing families, particularly from the district of Guru, the central province of Manica, where the Cotton Institute of Mozambique is working on a project to develop the raw material, the Ministry of Industry and Trade said.

The investment may lead to the development of small- and medium-sized enterprises in Mozambique's textile industry, Inroga said, adding that it will be "the first large-scale industrial unit to be mounted in the country".