The Tanzanian government is set to build a new tyre plant. According to local news reports, permanent secretary in the Ministry of Industry, Trade and Investment Dr Adelhem Meru, told the Public Accounts Committee (PAC) the new factory will be based on new technology.
He also said the new factory would new replace General Tyre East Africa Limited (GTEA) and that there are no plans to revamp General Tyre because of the relatively old-fashioned machinery used there.
In 2012 Tanzanian ministers pledged US$20 million to kick-start General Tyre, but the plans never materialised. GTEA ended production in 2009. AllAfrica.com reports that the government re-purchased 26 per cent if GTEA shares worth 2.1 billion shillings (£728,000; 849,000 euros; $961,000) from Continental AG last year (2015). This would value GTEA at around £3 million in total – less than the $20 million the government pledged to re-start production and far less than is required to build a new factory.
Category: International News