• No_Ads
Business
Tembo Steel closes Iganga plant over power shortagePublish Date: Dec 31, 2013
Tembo Steel closes Iganga plant over power shortage
  • mail
  • img
newvision

By Darious Magara

Tembo Steel Mills, a steel rolling factory, is in the final stages of phasing out its Iganga plant over insufficient power supply, officials said.


Sources privy to the closure said the multi-billion plant, which was commissioned by President Yoweri Museveni in 2007 as the biggest investment project in Iganga district, is shifting part of its establishment to the Lugazi branch.

According to the source, Tembo has over the past three years been suffered acute power shortage, which has interfered with their production. The plant is located at the end of the 40km stretch from Jinja outside Iganga town.

The feeder supplying power to the plant is a 33KV line originating from the Jinja industrial substation. But because of the distance, the voltage drops to about 26KV, which is not sufficient for steel manufacturing.

“It is true we are relocating our main machinery to another factory at Lugazi to consolidate our production process,” said Anand Kedia, an official from Tembo Steels.

“We recently made investments worth billions at both our plants in Iganga and Lugazi. These initiatives call for a consolidate approach towards production and we cannot afford to stay off-line,” Kedia explained.

It was not possible to get a comment from Umeme, but sources said the power distributor could not immediately act due to budgetary constraints.

“But the permanent solution of constructing a 132KV substation falls in the Uganda Electricity Transmission Company’s docket,” the source said.

“We petitioned Umeme over this problem but our pleas have fallen on deaf ears. The nature of our business calls for consistent quality power,” said Kedia.

“Initially, we were using only 16MW of power, but now we require about 40MW for us to realise our full potential with the recent innovations and expansions.”

Kedia, however, said the company will retain all their workers.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Easter: Traders make losses
Due to change of location, high costs and the financial wellbeing of potential buyers, art and craft traders who annually sell in Uganda have this year made losses....
ICT to drive insurance penetration
Until recently, Ivan Mugeere, a proprietor of a tour company had not considered taking a life insurance policy....
Africa’s economy resilient - World Bank
Economic activity in Sub- Saharan Africa remained robust in 2013, highlighting a significant increase in capital inflows and net direct foreign investment (FDI) inflows...
Uganda woos American, Canadian tourists
Tourism promoters are on a charm offensive wooing travel agents and tourists from North America to enable them get the actual on-ground reality about Uganda as a peaceful and beautiful travel destination....
ISO to recall certificates over decline in standards
The international organisation for standardisation (ISO) is to recall certificates of organisations and companies in Uganda that fail to sustain international standards....
What the 2014/2015 budget offers to farmers
The Government has demarcated the country into various agricultural zones to promote particular agricultural products for commercial purposes to boost household incomes....
WIll the national ID registration process be completed in the scheduled 4 months timeframe?
Yes
No
Can't Say
follow us
subscribe to our news letter