|
TPM
(1998) was METL’s first foray into manufacturing when it
acquired a Government owned sisal bag manufacturing business in
early 1998. Having bought several sisal estates a few months
earlier, this was a logical step, since the local sisal bag
market utilises lower quality sisal fibres, which are not
exportable. The business was run down at acquisition, and METL
quickly initiated
a
full rehabilitation, which got production started again very
rapidly. Production methods were improved to make the sisal bags
more competitive for the packaging of agricultural exports such
as coffee and cashewnuts.
However, imported jute bags and locally-produced polypropylene
bags have been a growing threat to the success of the local
sisal bag market, in the absence of an adequate supporting
policy to promote use of sisal. The result has been that despite
good sales of TPM’s (1998) sisal bags to the coffee and cashew
industry, there is still significant excess capacity in the
production plant. To compensate for this, and to improve
efficiencies and profitability, METL has started the manufacture
of jute fibres alongside sisal manufacture.
The company will continue with its aggressive marketing policy
combined with improved distribution channels to expand its sisal
bags market within Tanzania and the neighbouring countries.
|