Utexrwa stops silk production, opts for yarn exportation

The company will resume production and also expand the capacity of their reeling machines once cocoons are available for the existing capacity. The low production of silk cocoons has forced L’Usine Textile du Rwanda (Utexrwa) to temporary suspend production of silk garments, management has said. Raj Rajendran, the company’s Managing Director told The Business Times in an interview that the current production of silk cocoons cannot sustain the company’s production capacity. “We need about 7.5 tonnes of cocoons per month to sustain our production capacity. But only 1.3 tonnes of cocoons that can be used in 3-4 days is produced,” he said. “This leaves us with a deficit. We cannot produce if we can’t sustain the market,” “We have not even received any returns for further investment and sustainability.” Utexrwa the only textile industry in the country ventured into silk production last year with an initial investment of $900,000 (Rwf511.8 million). It had hoped to launch the first Rwandan-made silk garment on market in February this year. The Managing Director said the company has resorted to silk yarn exportation in order to generate revenue that would cushion against anticipated losses. According to company records, there are about 100 kgs of yarn stock yet its capacity is to produce 21,600 kgs of yarn per year from 172,800 kgs of cocoons. “Yarn samples have been sent to India, Egypt and Europe,” Raj revealed, adding that export to any of the markets will depend on the price offer. He said that this will not only help generate revenues for sustainability but also provide market for mulberry farmers. “We will continue to buy from farmers as we wait for sustainable cocoon production,” Raj stressed. He added that they will resume production and also expand the capacity of their reeling machines once cocoons are available for the existing capacity. Mulberry trees are cultivated on about 300 hectares countrywide. However, Utexrwa targets about 500 hectares by the end of next year while government is considering 600,000 hectares that would benefit 60,000 poor families in a period of three to four years. According to company management, 500 hectares of mulberry trees can produce 7.5 tonnes of cocoons and 125 tonnes of yarn, on average per year. Silk yarn is drawn from the cocoons of mature silk worms that are spun and woven into fabric. The developments come barely three months a research by On-The-Frontier (OTF) Group pointed out that sericulture is more profitable than coffee and tea but lacks sufficient financial support. The American consultancy firm’s report said government provides capacity building support but the private sector is yet to make investments. Ends

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Utexrwa stops silk production, opts for yarn exportation