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Tanelec limits production despite high capacity

ARUSHA-based Tanelec Limited is set to produce only 3,000 transformers annually, a move that reflects a marketdriven strategy rather than an attempt to utilise its full production capacity.

DAR ES SALAAM: ARUSHA-based Tanelec Limited is set to produce only 3,000 transformers annually, a move that reflects a marketdriven strategy rather than an attempt to utilise its full production capacity.

With the ability to manufacture up to 14,000 transformers per year, Tanelec’s decision underscores a focus on order fulfilment over maximising output. Mr Zahir Saleh, Tanelec Group Chief Executive Officer, explains that the company operates based on specific orders rather than solely on production capacity.

“Despite our plant’s high capacity, we produce according to orders to prevent resource wastage and ensure efficient financial management,” Mr Saleh told the Daily News on Tuesday.

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Tanelec’s transformers are tailored for specific clients, setting them apart from more generic products like metal or cement.

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“Our products address specialised needs and are not as universally applicable as construction materials, which are more broadly purchased,” Mr Saleh noted. The company’s main clients include Tanesco, various Rural Energy Agency (REA) contractors and Zanzibar Electricity Corporation (ZECO).

Tanelec has also expanded its market reach to several East African countries, including Zambia, Rwanda and Kenya. Since 2017, Tanesco has acquired 2,400 transformers, REA has purchased 800 annually and ZECO has bought 35. Under a World Bankfunded project in 2023, Zambia Electricity Supply Corporation Limited (ZESCO) procured 895 transformers from Tanelec.

Additionally, Kenya Power and Lighting Company and the Rural Electrification and Renewable Energy Corporation (REREC) acquired 300 transformers. In Rwanda, the Energy Utility Corporation Limited (EUCL) and Energy Development Company Limited (EDCL) bought 300 transformers over the past four years.

Mr Saleh emphasised that Tanelec’s commitment to high-quality standards and meeting specific client requirements has bolstered its strong regional presence.

The company is renowned not only for manufacturing distribution and power transformers but also for its expertise in transformer refurbishment and repair, housing the largest and most equipped repair centre in the region.

Recently, Minister for Industry and Trade Dr Seleman Jafo encouraged Tanesco and REA to continue purchasing Tanelec transformers. “Government agencies, as shareholders of Tanelec, should support the company’s growth and job creation in Tanzania by buying their products,” Dr Jafo said.

Tanelec remains a leading manufacturer of distribution transformers, power transformers, electrical switchgear metering units, line materials and accessories in East and Central Africa, serving both regional utility companies and the private sector.