Tanzania: Government Plans to Build New Tyre Factory

Posted on : Thursday , 18th August 2016

Dodoma — The government plans to put new tyre plant that deploys modern technology in order to meet the present market demands and standards.

Permanent Secretary in the Ministry of Industry, Trade and Investment Dr Adelhem Meru, briefed the Public Accounts Committee (PAC) in Dodoma yesterday that the new factory will not replace General Tyre East Africa Limited (GTEA).

He said there are no plans to revamp the General Tyre because the technology used to make tyres is outdated. "We are planning to build new tyre factory using latest technology to make tyre products that will compete in the present market," he said.

Dr Meru said has formed a team of experts that will advice the government on how to invest on the new factory. In 2012, the government pledged to inject 20 million US dollars to make General Tyre start operations but the deal was not realised.

The government purchased 26 per cent shares worth 2.1bn/- from the German firm, Continental Arktiengesellschaft (Continental AG) last year to repossess the company wholly.

The tyre company stopped production in 2009 over inadequate funding while the co-shareholder, Continental AG, was not ready to proceed with its investment at the factory.