Tanzania seeks traders to revive 55-year-old tyre plant

The Tanzanian authorities is looking for traders to revive the Arusha-based tyre manufacturing plant to cater for the native and regional markets.

The revival of the 55-year-old Common Tyre East Africa (GTEA) targets manufacturing of 1 million motorcar tyres yearly. A report by the Ministry of Business and Commerce by its Nationwide Growth Company (NDC) in June stated new traders would lease the manufacturing unit for 33 years, with a renewal settlement.

GTEA was established in February 1969, underneath a partnership between the Tanzania authorities and Common Tyre of america of America with an set up capability to supply 320,000 tyres per 12 months. The manufacturing unit began operations in 1971 however stopped in 2007 because of the flooding of the market by imported, low-cost tyres, principally from China.

In its new technique, the Ministry of Business and Commerce has proposed an set up of tyre manufacturing machines with manufacturing capability of 1 million tyres per 12 months, aiming to cater for native demand. The plant is anticipated to supply a full vary of tyres for vehicles, buses, mild and heavy-duty vans.

The revival of the plant would minimise the importation of the tyres from China, Japan, India and Dubai, the ministry stated. Automobile house owners have complained in regards to the low high quality of imported tyres, which they are saying usually are not sturdy in excessive temperatures and Tanzania’s trunk roads.

Tanzania truck and passenger bus house owners have raised considerations in regards to the imported tyres, which they stated usually are not match for trunk roads, principally these connecting Tanzania and the Democratic Republic of Congo, Burundi and Rwanda.

Deputy Minister for Business and Commerce Exaud Kigahe stated earlier that the federal government was looking for a strategic investor with the wanted capital and know-how for the revival of the Arusha plant.

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