More than 1000 workers are set to lose their jobs at Zambia's largest textile company which is to close indefinitely after failing to compete with cheaper textile imports from China.

The Zambia China Mulungushi Textiles company, which is jointly owned by the Chinese and the Zambian government, shut down production in January after suffering prolonged losses.

Now redundancy notices have been sent to all workers at the plant in Kabwe, about 150km north of the capital Lusaka, who will lose their jobs from 30 June.

The factory was set up three decades ago with direct foreign investment funds from China, and grew to become the biggest textile mill in Zambia - employing more than a thousand people and making 17m metres of fabric a year and 100,000 pieces of clothing.

There has been no indication whether or not Zambia China Mulungushi Textiles will be re-opened.