China's CCLE Rubber opens Ugandan tire factory

ERJ staff report (TP)

Mukono, Uganda − CCLE Rubber Company from China, is to open a $25m (€18.5m) motorcycle tire and tube manufacturing company in Mukono District, central Uganda, reported Andrew Ssenyonga for New Vision.

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.

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 (4 February), who had just returned from China on a short engineering course in tire and tube manufacturing.

The group acquired skills in tire building, quality assurance, maintenance, rubber mixing, tube joining, tire vulcanisation and extension. 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 and the company targets 700 employees from Uganda. Fan noted that this will boost the country’s economic development and compete on the world market in production of motorcycle tires. 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 favourable 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. Ajedra said the factory is to promote quality products and reduction of prices of motorcycle tires 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,” Ajedra said.

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.

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