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Cotton firm resumes operations after 14 months
Bach Tuyet Cotton Joint Stock Co., once Vietnam’s largest medical cotton products supplier, resumed production Wednesday following a 14-month shutdown due to financial problems.
Phan Thanh Quang, chairman of the company, said about 80 of its former employees returned to work on two production lines. The company said it plans to manufacture 40 tons of products this month and gradually win back its market share.
The Ho Chi Minh City-based company halted operations on July 12 last year when its major shareholder, Gia Dinh Textile and Garment Co., objected to plans to raise VND82 billion (US$4.7 million) by selling shares to repay overdue debt. The company posted losses for two consecutive years in 2006 and 2007.
Bach Tuyet, which used to supply about 80 percent of the medical cotton products used in Vietnam’s hospitals, is still VND50 billion (US$2.8 million) in the red.
General Director Ngo Van Hung said the company had to borrow money, mainly from Gia Dinh, to buy production materials and repair machinery.
The State Securities Commission suspended trading of Bach Tuyet’s shares beginning August 3 this year, according to a statement posted on Ho Chi Minh Stock Exchange’s website.
thanhnien, vietnamplus
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