The Chinese will build a tire factory in Tanzania

Hubei Aulice Tyre Co., Ltd. intends to build a new plant for the production of truck tires in Tanzania, with a capacity of around 1.2 million units per year, according to Chinese media.

The project is expected to invest 700 million yuan (98 million dollars), 500 million of which the company plans to attract in the form of loans. The expected name of the new enterprise is Baha Tyre, and it is planned to be registered in Kibaha (Pwani Region). Aulice will own 100% of the new company's shares.

Currently, Aulice owns two plants in China's Hubei Province (in Huangshi and Xianning), which produce truck and OTR tires under such brands as Aulice, Vanlustone, and Aosowing.

Previously, Tanzania already had its own tire production, but the plant, opened by American General Tire with the participation of the country's government in 1971, was stopped in 2007 due to a decline in competitiveness related to the influx of cheap tires from Asia. Currently, the authorities of Tanzania are looking for investors to resume production at the enterprise located in Arusha in the north of the country.

At the moment, a tire plant in Africa, namely in Tangier (Morocco), is being built by the Chinese Sentury, which recently announced that it will increase its project capacity.