DAR ES SALAAM, Tanzania—The government of Tanzania is looking for investors to revive a 55-year-old tire manufacturing facility in the country to cater for demand locally and in the region.
According to a document published by the National Development Corp. (NDC) in June, the government is seeking a "lessee" to develop "a modern plant" at the existing General Tyre East Africa (GTEA) facility in Arusha, in northern Tanzania.
Idled in 2007, the facility was established in 1969 with a nameplate capacity of 32,000 units per year, the strategy document said.
For the revival project, the operator will have to lease the factory, owned by NDC, for a minimum period of 33 years, according to the strategy. The operator is required to install machinery to produce at least 1 million units of passenger car, truck/bus and heavy machinery tires per year.
With pre-bidding meetings scheduled for July 19, the winner of the tender is required to construct the plant within 36 months. The bidders, NDC said, must have experience in tire manufacturing or related businesses such as automotive components, tire recycling, distribution or chemicals used in tires.
The bidders are also required to have "enough capital and modern technology."
