The Export Development Investment Fund (EDIF), has released 2.8 million Ghana cedis, to the Bawjiase-based Ayensu Starch Factory in the Central Region, to revamp the operations of the industrial unit that was halted in March 2006.
EDIF has committed a total of 3.5 million Ghana cedis, to streamline the operations of the factory, which is part of the President's Special Initiative to promote the commercial exploitation of starch for export.
Mr Kwaku Bonsu, Co-ordinator of the Cassava Starch Project and acting Managing Director of the factory, who disclosed this to newsmen in Accra, said the factory, which started operations in 2001, had to fold up due to capital constraints and lack of raw materials.
He said the factory had the capacity to produce 22,000 tonnes of processed starch per annum, which was second to South Africa in the African Region.
Mr Bonsu said the production cost of a tonne of starch was 240 dollars, while the factory was attracting an overhead cost of between 10 and 15 per cent.
He said the factory had signed an agreement with large scale farmers to produce cassava, which is the main ingredient for the production of starch.
The factory is also starting a nucleus farm, spanning 6,000 acres with the aim to produce 24,000 tonnes of starch.
The Managing Director said the production of 150 tonnes of starch a day represented 50 per cent of the factory's plant requirement.
"If the factory is able to produce 20 per cent of its capacity it can break even since it will be able to generate 5.7 million dollars as revenue," he said.
Mr Bonsu said there was a global requirement for starch for the production of pharmaceutical products, beverages, floor tiles, paper and spices.