LAKE Oil Group has launched its lubricant production plant in Dar es Salaam to tap into a growing and lucrative market.
Speaking during the launch of the plant on Monday, the Executive Director of Lake Oil Group, Mr Ally Awadhi, said the plant has a capacity to produce more than half of lubricant demand in the market.
He said the plant employed 35 local and foreign employees and it is expecting to employ about 250 employees in the future with priority on local residents.
The lubricant plant would be producing quality products that meet local and international standards, he said.
According to him, they will work together with all government’s institutions responsible for lubricants business to make sure the industry maintain production of quality products that will promote the country in the international market.
“Lake Lubes industry had cost 4.5 million US dollars where 2.0 million US dollars came from our accounts and the rest 2.5 million US dollars is a bank loan,” he said.
The Minister of Industry, Trade and Investment, Mr Charles Mwijage, assured that the government would continue to improve conducive environment to allow investors to invest in the country.
“The aim of the government is to set up and maintain good relationship with investors and not otherwise,” said Minister Mwijage.
He advised Tanzanians to use local products to support local investors who donates per national income through tax paying.
According to him, local market of lubricants is full of non-quality products which causes high cost of vehicles maintenance.
The kind of lubricants available in the market do not have required quality because the business of lubricants is dominated by unfaithful traders.
He said he would organize a meeting with the Tanzania Bureau of Standards (TBS) and the Energy and Water Utilisation Regulatory Authority (EWURA) to review the country’s law for controlling lubricants business in order to make sure only quality products are sold in the market.
Earlier during his launching remarks, Mr Awadhi said the company is in the process to complete construction of Lake Steel Industry in Misugusugu area in the Coast Region.