TANZANIA is seeking for an experienced and competent investor to establish a new and modern tyre producing plant in Arusha.
The plant, according to a National Development Corporation (NDC) bid notice issued on Monday, will have an annual production capacity of 900,000 tyres. It will be operated by a Joint Venture Company to be formed between NDC and the investor.
“The objective is to secure an experienced and competent investor (strategic partner) in tyre manufacturing who has world renowned tyre brand to partner with NDC,” the notice said.
The Joint Venture Company will have the right to carry out a feasibility study and environmental and social impact assessment (ESIA) for the establishment of the plant, and a prepared business plan.
The investor is required to have a five-year experience in tyre manufacturing. NDC is tasked to build the new plant at the premises of General Tyre East Africa Limited.
According to the NDC notice, General Tyre “is old and its technology is out-dated and can no longer sustain in the global market competition.”
General Tyre has annual production capacity of 320,000 tyres. The old plant has a new bay for expansion but has not been installed with production facilities. The plant stopped operations in 2009 due to lack of financial resources.