Bata Uganda closes factory
BATA Uganda has closed its factory in Kampala due to inefficient machinery and an unbearable energy crisis.
By Peter Kaujju
BATA Uganda has closed its factory in Kampala due to inefficient machinery and an unbearable energy crisis.
A source said Bata had relocated its factory equipment to Kenya and would retain stores for distribution of its products on the Ugandan market.
“The Bata shoe factory has been producing below capacity due to power outages, which got to unbearable levels. The plant has been closed and almost all equipment relocated to Nairobi. The company will, however, operate stores here, but the products will be got from other factories abroad,†said the source.
The source said there was uncertainty about whether the company would retain all its outlets across the country.
The source said the company stopped manufacturing about two months back.
Paul Jacubec, Bata Uganda’s managing director, confirmed the closure of the manufacturing plant and said they were now a trading company.
“We stopped manufacturing shoes because of inefficiency of the machinery and the energy crisis. Now we are a trading company and not into manufacturing. We import the shoes from countries like Kenya and China, depending on who gives us the best rate,†Jacubec said.
He said the move that had affected about 12 employees was part of the company’s restructuring and modernisation exercise.
Jacubec said the company has 21 outlets across the country and they would soon open another in Ntinda, a Kampala suburb.
Ends
BATA Uganda has closed its factory in Kampala due to inefficient machinery and an unbearable energy crisis.
A source said Bata had relocated its factory equipment to Kenya and would retain stores for distribution of its products on the Ugandan market.
“The Bata shoe factory has been producing below capacity due to power outages, which got to unbearable levels. The plant has been closed and almost all equipment relocated to Nairobi. The company will, however, operate stores here, but the products will be got from other factories abroad,†said the source.
The source said there was uncertainty about whether the company would retain all its outlets across the country.
The source said the company stopped manufacturing about two months back.
Paul Jacubec, Bata Uganda’s managing director, confirmed the closure of the manufacturing plant and said they were now a trading company.
“We stopped manufacturing shoes because of inefficiency of the machinery and the energy crisis. Now we are a trading company and not into manufacturing. We import the shoes from countries like Kenya and China, depending on who gives us the best rate,†Jacubec said.
He said the move that had affected about 12 employees was part of the company’s restructuring and modernisation exercise.
Jacubec said the company has 21 outlets across the country and they would soon open another in Ntinda, a Kampala suburb.
Ends