He also said the new factory would new replace General Tyre East Africa Limited (GTEA) and that there are no plans to revamp General Tyre because of the relatively old-fashioned machinery used there.
In 2012 Tanzanian ministers pledged US$20 million to kick-start General Tyre, but the plans never materialised. GTEA ended production in 2009. AllAfrica.com reports that the government re-purchased 26 per cent if GTEA shares worth 2.1 billion shillings (£728,000; 849,000 euros; $961,000) from Continental AG last year (2015). This would value GTEA at around £3 million in total – less than the $20 million the government pledged to re-start production and far less than is required to build a new factory.