Tyre poducing firm- Sameer Africa Ltd has announced that it will close its manufacturing plant in Kenya as it reels from the effects of cheap tyre imports flooding Kenyan market.
The company’s managing director Allan Walmsley said Sameer Africa will close shop from the 30th of this month after approval by Capital Markets Authority.
The firm will now commence offshore production by manufacturers in China and India, as it incurs a one-off charge in respect of plant and inventory impairment and employee severance costs estimated at approximately Sh725 million.
In a statement on Thursday, Walmsely cited reduced custom duties for tyre imports, high energy costs and under-utilisation of factory capacity as some of the effects that have adversely impacted the company’s business, resulting to joblessness of over two thousand workers.
Sameer Africa has however assured its Kenyan customers of continuous tyre supply and that it will continue distributing bridgestone tyres across the country and the neighbouring Tanzania and Uganda.