Business
Uganda to get a tyre factory
Publish Date: Feb 06, 2014
Uganda to get a tyre factory
Minister for Investment Gabriel Ajedra(C) and the Managing Director of CCLE Rubber Company Chen Fan in a picture with some of the 20 trainees from China on. Picture by Abou Kisige
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By Andrew Ssenyonga 
 
CCLE Rubber Company from China, is to open a $25million (about sh63bn) motorcycle tyre and tube manufacturing company in Mukono district.
 
The factory also intends to manufacture lubrication oil. The factory, a first of its kind in the region, is already under construction and expected to start operations in March this year.
 
The CCLE managing director, Chen Fan said the structures are already completed, only waiting for their machinery which is on its way to Uganda to be installed and start production.
 
Fan said this at a welcoming party of 20 engineers at Serena hotel Kampala on Tuesday, who had just returned from China on a short engineering course in tyre and tube manufacturing.
 
The group acquired skills in tyre building, quality assurance, maintenance, rubber mixing, tube joining, tyre vulcanization and extension among others.
 
 
Some of the 20 trainees from China. The trainees had gone to acquire rubber manufacturing skills.Picture by Abou Kisige
 
The six month training was sponsored by CCLE Rubber Company to prepare skilled labour to work in the factory. Fan said the trainees who returned from china will be among the first of their planned direct employment.  The company targets 700 employees from Uganda.
 
“We hope to start operations in March. We target the Ugandan market and the entire region,” he said.
 
Fan noted that this will boost the country’s economic development and compete at the world market in production of motorcycle tyres.
 
He asked the locals to start engaging in planting rubber trees because they face a challenge of importing raw materials.
 
He commended Uganda for creating a favorable business environment and promised to invite fellow investors from China to invest in agro-processing industry.
 
While officiating at the event, the minister for investment, Gabriel Ajedra said Uganda needs more manufacturing industries to create employment.

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Ajedra said the factory is to promote quality products and reduction of prices of motorcycle tyres in the country and the entire region.

 “This is what Uganda needs. If we get such industries, then the future of this country is very bright. People spend a lot of money on importing goods. It hurts because we even have the raw materials here,” he noted.

 He also said Uganda remains a destination of choice for business because of peace and economic stability.

 However, Ajedra noted that Uganda still had challenges of infrastructure and energy deficit. But he said the challenges can be turned into business opportunities coupled with tremendous opportunities in abundant labour, arable land for agriculture, agro-processing, tourism, mining and other untapped natural resources.

 

Minister for Investment Gabriel Ajedra and the Managing Director of CCLE Rubber Company Chen Fan welcoming back some of the 20 trainees from China. Picture by Abou Kisige

 

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