New investors expected to restart GTEA production
Production at Tanzanian tyre maker General Tyre East Africa will reportedly resume within a year. Last year management of the company – which hasn’t produced a tyre since 2007 – was placed in the hands of Tanzania’s National Development Corporation, and the corporation’s corporate affairs manager now says that investors from China, Malaysia and South Africa have shown interest in the getting the company up and running again.
“The feasibility study, maintenance and rehabilitation of plants and buildings are expected to be done by February next year to be followed by first phase of production as soon as the rehabilitation is over,” corporate affairs manager Abel Ngapemba told the Tanzania Daily News. He added that it would be possible to start manufacturing tyres again once the company’s legal issues with Continental AG are resolved. Many Tanzanians hold Continental responsible for General Tyre East Africa’s deterioration, claiming the German company failed to invest in the tyre maker.
Ngapemba said it is hoped new contractors will be selected this month and other partners by the end of the financial year.