Local vacuum flasks manufacturer Seeks Protection from imported flasks

Hengchang Plastic (U) Co Limited, is seeking Government intervention to protect locally manufactured vacuum flasks from cheap and low-quality imported flasks.

This was revealed by Mr. Zhong S. Quan, the Managing Director during the UMA membership visit led by Mr. Mubaraka K. Nkuutu, the Director of Business Development, Mr. Muzamil Muhammad – the Manager Policy & Advocacy and Ms. Sylvia Zalwango, the membership officer. Hengchang Plastic (U) Co Limited.

According to the Managing Director, Mr. Zhong S. Quan, his company is currently operating at only 10% of its installed capacity. “With only 10% production of our installed capacity, we are optimistic of optimal growth if only supported by the favorable tax policies that will limit the importation of the same product”

Hengchang Plastic (U) Co Limited was incorporated under the laws of Uganda in 2006 and has become one of the leading manufacturers of household plastic items including beverage and chemical packaging with an annual production of nearly 10,000 tons and employing over 400 people in the production, sorting, classification, and packaging of vacuum flasks. nearly 10,000 tons.

With an investment of over 45 billion factory plants in Namanve industrial park and Bugolobi industrial area, the company has ventured into manufacturing of vacuum flasks in 2018 and have since invested heavily in this production line. 

Seek protection of vacuum flask manufacturing business from imported products to support import-substitution which in effect saves Uganda’s foreign exchange position as well as creating employment opportunities. This in turn will tremendously benefit the economy including the use of local raw materials in manufacturing vacuum refills and ultimately ensuring affordable and better-quality products for the people of Uganda.

On 20 May 2020, the Parliament of the Republic of Uganda passed the National Local Content Bill, 2019, (National Local Content Act or Act). The Act seeks to address and remedy the shortcomings and defects with all existing policy, legislation, and guidelines touching on the subject of local content in Uganda with the Guidelines on Reservation Schemes to Promote Local Content, 2018 and the ‘Buy Uganda Build Uganda’ (BUBU) Policy.

Mr. Zhong says that an increase in excise duty on imported flasks by 30% would be necessary to ensure the competitiveness of their products and subsequent expansion of production.

Additional Info

  • Start Date: Sat,02 Oct 2021
  • End Date: Fri,15 Oct 2021
  • Venue: UMA

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