Tembo Steel Takes Bold Steps to Foster Growth and Development in the Steel Industry
UMA Executive Director, Ezra Rubanda has applauded Tembo Steel’s strategic decision to close its nail making plant to foster growth of smaller companies producing nails.
Tembo Steel notified the team of its decision to close its nail making plant and focus on supplying raw materials to smaller nail making companies during the recent membership visit by the UMA Executive Director, Ezra Rubanda.
This decision was met with approval from Rubanda, who stated that it was a step in the right direction to smaller companies while managing the negative effects that may arise from competition between raw material suppliers and the smaller nail making companies. The move is expected to promote the growth and development of the industry as a whole.
In addition to this, Tembo Steel has implemented measures to screen the scrap that is delivered to their plant. This has been noted by Rubanda as an example of intra-sector self-regulation on scrap, which has been a hotly debated topic, with steel manufacturers being in the spotlight for alleged vandalism of electricity equipment used in the production of steel products. This move is seen as a positive step towards promoting sustainable practices in the industry.
The Chairman of Tembo Steels, Sanjay Awasthi sought UMA’s support for companies like Tembo, that have made strides towards vertically integrating the sector.
The steel industry is a critical sector for economic growth and development in Uganda. Companies like Tembo Steel play a critical role in promoting growth and development in the industry, while creating opportunities for smaller companies to thrive. With the industry continually evolving, companies like Tembo Steel will be essential in promoting sustainable practices and driving growth and development in the industry.
About Tembo Steels
Tembo Steels is a Ugandan-based company that specializes in manufacturing steel products, with production facilities located in Iganga and Lugazi. The company focuses on the production of both hot and cold rolled profiles. Tembo Steels has made strategic investments that have resulted in the creation of valuable tangible and intangible assets that contribute significantly to the Ugandan economy. Notably, Tembo Steels is the sole producer of steel that utilizes locally sourced iron ore as raw material.