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
  • mail
  • img
newvision

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.

Related stories                        
Chinese investments in Uganda now at sh1.5 trillion                                                                        
Chinese firm awarded oil production license                                                                                          
Oil: Ugandans advised on joint venture with Chinese                                                               
Chinese car maker enters Uganda market 

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

 

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
Standard Chartered scoops best consumer digital bank award
Standard Chartered Bank Uganda has been awarded best consumer digital bank by Global Finance Magazine. Standard Chartered Bank PLC largely dominated the Global Finance Magazine’s 2015 Best Consumer Digital Bank Awards in Asia, Africa and the Middle East, winning 17 country awards and 6 regional aw...
Tororo cement in sh86b expansion
Tororo Cement Limited, Uganda’s largest cement manufacturer has injected $ 25m (about sh86b) towards the plant expansion....
EAC countries asked to create more dry ports
There is need for more dry ports to respond to the growing business in grain trade at the three border posts of Namanga, Busia and Hororo....
Nigerian billionaire challenges youth on entrepreneurship
Nigerian billionaire Tony Elumela has challenged 40 youthful aspiring entrepreneurs not to blame lack of capital for not starting business because their brains can suffice....
Microsoft launches free Windows 10 upgrade
Microsoft’s latest version of Windows operating system is finally here.The long-time leader in PC software launched its much-awaited Windows 10 on Wednesday in Nairobi Kenya....
Barclays bank says net profit jumps 43% in first half
Barclays increased net profits by 43 percent in the first half of the year, the troubled British bank announced on Wednesday....
Should faith based organisations be registered as Non-government organisations?
Yes
No
Can't Say
follow us
subscribe to our news letter