Sameer Africa to close Kenya plant, move production offshore

[Nefertiti]

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Tyre manufacturer Sameer bails out due to high production cost and cheap imports.

In a statement on Thursday, the company said the decision was necessitated by competition from cheap and subsidised tyre imports entering its markets and will therefore commence offshore production by manufacturers in China and India.
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Walmsley said other factors like reduction in custom duties for tyre importation, high cost of electricity and underutilisation of factory capacity have also impacted the business adversely and this will lead to loss of jobs in the factory.

But he assured of continued supply of the tyres in the country.

http://www.the-star.co.ke/news/2016/09/01/sameer-africa-to-close-kenya-plant-move-production-offshore_c1412933

[Kadudu]

We do not need those dirty jobs. You see Facebook's boss Zuckerberg was in town. Next Nairobi will be Silicon Valley and all people will be on white collar jobs.

[RVtitem]

It's going to be very difficult to move masses out of poverty using silicon valley path.

I think we need basic industries that employ and pay many people.

Kadudu, how many employees does whatsapp, snapchat type of companies have??

In fact, I do believe that technology companies promote a lot of inequality more than any other. Aple inc. is also said to be sitting on a huge pile of cash, while mining more from working classes.

And to make it worse, this government has been chasing EPA agreement that will allow free market for European manufacturers in Kenya... I think we are doing well so far

[gout]

Most big manufacturers across Africa are just warehouses of imported goods; now they can't compete with River Road importers who offer knock down prices

The only guys doing serious manufacturing are the small local players 

[Georgesoros]

Dirty jobs

Most big manufacturers across Africa are just warehouses of imported goods; now they can't compete with River Road importers who offer knock down prices

The only guys doing serious manufacturing are the small local players 

[Nefertiti]

We need to deal with industrial efficiencies,  especially big inputs like electricity, transport, land, plant capacity utilization, etc. Basics that need govt effort and individual company innovation. Manufacturing jobs are already mjengo kind cheap mass labor. SEZs, SGR are meant to improve this situation. Bottomline we must shape and be more competitive or die.

[hk]

sameer africa tyres yana are very expensive. They are about 30-40% more expensive than imported tyres but they are good durable tyres. In a country like kenya with majority of motorist being price sensitive sameer either starts producing cheap tyres, import or close down.

[Nefertiti]

They are MOVING shop to China/India... very bad news. It seems they gave up on local environment hopes of improvement. This points to our lack of competitiveness and why FDIs remain dismal.

sameer africa tyres yana are very expensive. They are about 30-40% more expensive than imported tyres but they are good durable tyres. In a country like kenya with majority of motorist being price sensitive sameer either starts producing cheap tyres, import or close down.

[RV Pundit]

precisely. we have to deal with the fundamentals first. electricity supply,reliability and cost, road/rail network, reliability and cost, then we can seriously talk about manufacturing.

We need to deal with industrial efficiencies,  especially big inputs like electricity, transport, land, plant capacity utilization, etc. Basics that need govt effort and individual company innovation. Manufacturing jobs are already mjengo kind cheap mass labor. SEZs, SGR are meant to improve this situation. Bottomline we must shape and be more competitive or die.

[Kadudu]

The IT industrycan have about 2.000 employees. The rest Kenyans can act like shamba boys, watchies, cooks or bring the big boys chai. This way millions will be employed in courtesy of the 2.000 IT guys.

It's going to be very difficult to move masses out of poverty using silicon valley path.

I think we need basic industries that employ and pay many people.

Kadudu, how many employees does whatsapp, snapchat type of companies have??

In fact, I do believe that technology companies promote a lot of inequality more than any other. Aple inc. is also said to be sitting on a huge pile of cash, while mining more from working classes.

And to make it worse, this government has been chasing EPA agreement that will allow free market for European manufacturers in Kenya... I think we are doing well so far

[Nefertiti]

Technology is an important innovation and efficiency enabler, not really a big employer.

[hk]

The successful manufacturing companies in kenya have found a way around high cost of energy. Case in point is kapa oil refineries which put up its own coal fired boilers which is about 50% cheaper than regular electricity. The company even built its own rail extension to its factory. In kenya to survive in legit business one need to be innovative and its tough but the market is big.