Agencia de Informacao de Mocambique (Maputo)

Mozambique: Government Hopes to Revive Tyre Factory

Maputo — The Mozambican government is trying to find investors interested in taking over a paralysed tyre factory on the outskirts of Maputo, but if current negotiations fail, it may launch an international tender.

The company, Mabor, was once a showpiece. It opened in 1979, and in the 1980s it was put on the itinerary of visiting heads of state, as an example of successful collaboration between the Mozambican government and foreign investors - in this case, the General Tire company of the United States.

But the Americans have pulled out, and for the past five years the factory has been deserted.

The National Director of Industry, Sergio Macamo, told AIM that the government has been looking for investors to take over Mabor, so far without success. "We received several proposals, but when the time came to make the investment, they did not advance", he said. "Now we've given a chance to a company that says it wants to revive Mabor. But if the negotiations with this company fail, then we shall launch an international tender by the end of this year".

Macamo said that the government's perspective is that Mabor should resume production as soon as possible, since there is a huge demand for tyres internationally.

"The government hoped that Mabor would resume production last year", he said. "But it doesn't depend just on the government. It also demands on the people we're trying to attract to invest in the factory".

Mabor was a industrial success story in Mozambique, even during the war of destabilisation. At peak production it was making more than 800 tyres a day. The Mozambican market for tyres is relatively small - but Mabor was able to export 35 per cent of its production to South Africa. Other members of SADC (Southern African Development Community) - including Zimbabwe, Malawi, Zambia, Botswana and Namibia - also purchased Mabor tyres.

In 1995, Mabor received the DOT (Department of Transport) quality certificate from the United States, which raised still further the reputation of its tyres.

So why did it close down? The trade union committee at Mabor was baffled, since the factory was in good condition, and there was plenty of raw material in stock. No-one has ever explained why the foreign investors walked away - but when Mabor workers went on strike for a substantial pay rise in mid-2002, threats were made that industrial militancy could lead to the closure of the plant.

The Mabor factory covers an area of 23,000 square metres, and it contained equipment for making tyres for light, heavy and commercial vehicles, and for tractors, and inner tubes for all the range of tyres it manufactured.

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