The Arusha-based manufacturing PHOTO | FILE | AFP
Tanzania is in talks with six multinational companies over plans for a joint venture to revive General Tyre East Africa, the giant tyre manufacturing plant in Arusha.
The state-run National Development Corporation (NDC) said that three Asian corporations and another three from America, Europe and Africa have approached the government, seeking a partnership to revive General Tyre, which used to supply tyres throughout East and Central Africa.
“We are finalising our due diligence and talks to end a troubled partnership with Continental AG of Germany in a bid to transfer the General Tyre assets to NDC. After that, we will negotiate with prospective companies,” NDC’s acting director of heavy industry Ramson Mwilangali told The EastAfrican.
Continental AG, with 26 per cent shares, has since 2006 been embroiled in a dispute with the government over a poor supply chain and low production levels, which resulted in the closure of the company in 2009, locking out about 400 workers.
In July 2008, the firm petitioned the Tanzania government, which owns 74 per cent of General Tyre, for a renewal of the contract. But […]