Tanzanian government to buy out General Tyre East Africa
The Tanzanian Government is reportedly in final talks with Continental AG on the subject of buying back its 26 per cent shareholding in the now-defunct General Tyre East Africa (GTEA) tyre manufacturing company. According to local news reports, the government intends to revamp the tyre company.
Owing to the fact that the government already has 74 per cent of the company and Continental holds the remaining 26 per cent, the move amount to a nationalisation of the company.
Continental is said to be asking for US$1 million for its stake.
GTEA was established in 1969 through a partnership between the government and General Tire USA. At its peak, the company produced about 320,000 tyres per year, according to local news reports.
At the start of 2015, the Tanzanian government said it would re-open the GTEA plant. However, the company made similar claims in 2012 and 2010, which did not come to fruition.