The government of Tanzania is to finalize the conversation to sign the contract with Continental AG of Germany to regain 26% stake in the former General Tyre East Africa (GTEA) factory.
According to Tanzania’s Permanent Secretary in the Ministry of Industry and Trade, Mr. Uledi Musa, in an interview with local media, the discussions are positive and are in an advanced stage and the contract would be signed by the end of the month.
Under the intended deal the government of Tanzania will then hold 74% majority shares of the company and the German manufacturer will have the remaining 26%.
The agreement would involve the company to pay USD 1 million to the government and settle the debts of the old creditors, banks and suppliers.
According to Musa, the GTEA was producing quality products and the tyre industry was and remains to be a booming industry.
According to the government of Tanzania other investors showing interest in the tyre company are from Malaysia, South Africa and the United States and few more countries.
GTEA was established in 1969 as a result of a partnership between the government of Tanzania and General Tyre USA and started production in 1971 to become the first tyre manufacturer in East Africa.
The company in the 90s had an installed capacity of 320,000 units per annum.