Audio By Carbonatix
Workers of Akosombo Industrial Company Limited (AICL), formerly Akosombo Textiles Limited (ATL), say prolonged delays in government approval of a prospective investor takeover are worsening the company’s financial and operational crisis.
The workers, through their union leadership, have expressed frustration over what they describe as the slow progress in facilitating a deal with a Hong Kong-based investor, despite repeated appeals to the Ministry of Trade, Agribusiness and Industry to expedite discussions and finalise a proposed memorandum of understanding (MoU).
According to the union, negotiations with the investor began in December 2025 and were expected to be concluded by February this year. However, several months on, no agreement has been reached, and talks appear to have stalled.
The union maintains that approval of the MoU could provide the much-needed capital injection to revive operations, safeguard jobs, and ease the financial burden on hundreds of current and retired workers who are owed salaries and benefits.
Established in 1967 as ATL, AICL was once a leading textile manufacturer in Ghana, employing more than 3,500 workers at its peak. Today, that number has dwindled to just over 400, according to union officials.
“The company is barely able to meet local demand, and our export markets have significantly declined. It is evident that VLISCO continues to benefit from the prolonged absence of ABC Wax products from African markets,” a union representative said.
The union further alleged that the company’s spinning and weaving departments have been dismantled, with equipment sold as scrap and workers in those units laid off. They added that, with these departments no longer operational, any new investor would likely have to import grey cloth for production.
Local Union Executive Secretary, Joseph Kudjoe Botwe, stated that workers are owed about ten months’ salary, while bonuses have not been paid for nearly four years.
He said the prolonged financial distress has left many workers struggling to meet basic household needs, support their families, and afford healthcare. He further revealed that the situation has contributed to the deaths of about 50 workers, with others and their dependents still battling illness.
Union leaders blame years of poor management and inadequate investment for the company’s decline, arguing that these factors have steadily eroded production capacity and competitiveness.
They also insist that existing liabilities should remain the responsibility of current management, stressing that a new investor should not be burdened with all outstanding debts before takeover.
The union is urging the Ministry of Trade, Agribusiness and Industry to conclude negotiations swiftly to enable recapitalisation and operational restructuring.
Meanwhile, workers say little progress has been made, while their economic conditions continue to deteriorate.
AICL remains the only textile manufacturer in Ghana producing Real Wax fabric, a premium textile product long associated with the company’s legacy.
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