KMTC eyes 1.5bn/- to restore glory

THE famed Kilimanjaro Machine Tools Manufacturing Company, (KMTC) is in the final stages of sealing a 1.5bn/- investment deal with social security funds, as running capital for an ambitious two-phased project focused on spare parts production and capital equipment.
Seven social security funds are registered by the Social Security Regulatory Authority. A highly optimistic KMTC General Manager, Adriano Nyaluke, said here yesterday that the deal would literally awaken the sleeping industrial giant.
He remarked: “We are in the final stages of concluding negotiations with the social security funds for raising the initial capital. We are planning to spend at least Sh1.5billion during two phases, to revamp the company that has experienced poor performance since 2006.”
Elaborating, Mr Nyaluke said the focus during the first phase would include acquisition of materials (especially castings), refurbishment of the machine shop and other production lines for manufacturing machines and spare-parts, and the second one will cover market survey, as a preamble to capturing new customers for machine tools.
“We will invest more in agro processing machines which are in high demand and which we believe will add value to products, and boost the earnings of farmers,” he explained further.
“The preliminary market survey has shown that local demand for capital equipment and spare parts is very high. We are receiving many enquiries from potential customers in countries like Ethiopia, Uganda and Rwanda, but we are unable to respond positively, as we haven’t built up the requisite capacity yet,” the KMTC boss noted. He said the management faces an uphill task of revamping machinery that has been dormant for a long time.
“When the Bulgarian investors pulled out of the project in the early 1990s, the company was virtually crippled; we are literally starting from scratch.” KMTC, he pointed out, was one of Africa’s three capital equipment manufacturing companies, the other two being in Egypt and South Africa.
He explained further that, installation of a major foundry for molding major capital goods for customers within and outside the country would be undertaken during the third phase. Mr Nyaluke explained that Sh10billion would be spent on third phase tasks.
for sustainable production. Mr Joseph Mrina, a seasoned technician with over 30 years’ experience at the company, says its rehabilitation would contribute immensely to Tanzania’s industrial economy drive.