Sinotruk planning Sh46 billion assembly plant in Tanzania

Dar es Salaam. China truck manufacturer Sinotruk International will invest at least $20 million (about Sh46 billion) in a complete knock-down (CKD) assembly plant in Tanzania this year.

A knock-down kit is a collection of parts required to assemble a product. The parts are typically manufactured in one country or region, then exported to another country or region for final assembly.

Sinotruk International country manager Li Zhongyuan said recently that the investment will promote the growth of the transport and logistics industry in Tanzania. “We will always remain committed to satisfying our customers. Our core goal is to provide Tanzania with high-quality products and services and jointly create a bright future,” he noted.

He was speaking in Dar es Salaam during a brief ceremony where Sinotruk handed over 100 heavy-duty unit trucks to GSM Tanzania through its transportation company, Galco.

Mr Zhongyuan said upon completion of the planned assembly facility, the company will generate at least 500 jobs for Tanzanians and promote the auto industry development of Tanzania.

Locally, Sinotruk has already established long-term relationships with such famous companies as GSM, Dangote, Oilcom (T) Limited, Tanzania Road Haulage (1980) Limited, Golden Coach/Fleet Ltd, Asas, Azam, Mount Meru.

“Under our strong domestic and cross-border service capabilities, Sinotruk is making its contribution to the vigorous development of an efficient logistics transportation industry in Tanzania,” he said.

GSM Chief Commercial officer Allan Chonjo said the Tanzanian firm’s cooperation with Sinotruk would increase efficiency and productivity in their transportation business.

“Today is a great day for both GSM and our stakeholders within and across the borders of Tanzania as we have added the lists of our heavy-duty trucks to 800,” noted Mr Chonjo.

GSM through its sister transportation company, Galco, has been involved in the transit of goods on trucks weighing more than 30 tones within and outside our borders for almost 10 years.

Currently, the company serves the Democratic Republic of Congo, Mozambique, Malawi, Zambia, Burundi, Rwanda, Uganda, Kenya, and South Sudan.

Sinotruk has so far sold its products in more than 110 countries and regions, with an export capacity of the heavy-duty truck of around 50,000 units annually.

It is ranked first in China’s heavy-duty truck industry for 17 years in a row.