A group of Mauritian investors has bought derelict textile company Textil do Pungue in the central province of Sofala, and plans to spend US$3 million to bring the facility back to production.

Mozambican Television (TVM), which reported the sale on Sunday, did not say how much the deal was worth.

The Mauritians have renamed the company "Palmar Mocambique."

They hope to employ 600 workers initially, and produce 7,000 pairs of jeans per day for the American market through the African Growth and Opportunity Act.

The new company will import raw material from Mauritius, South Africa and Pakistan, a spokesman told TVM.