The deputy Speaker of Parliament, Thomas Tayebwa has pledged all the necessary support to Unisteel Investment Uganda Limited, a brand-new iron and steel manufacturing plant in Mbale Industrial Park.
Speaking during the launch of the first phase of steel rolling production at the shs367.7billion($100million ) Chinese-built plant factory, Tayebwa said he is ready to rally parliament and the entire government to give all the necessary support to the proprietors of the factory.
“We shall give you all the support and protection you need to invest in our country. On the directive of President Museveni, government is going to invest shs400 billion to transform this industrial park and I man going to follow it up to ensure it is fulfilled,” Tayebwa said.
He said he will soon engage with the leadership of the Uganda Investment Authority to ensure the industrial park has a one stop centre for investors so they don’t need to go to Kampala for services like work permits.
Tayebwa also pledged to ensure that the industrial park has stable electricity.
“We are going to ensure any issues disturbing you are sorted. Money doesn’t want excuses. These people get loans from banks for investment and we shouldn’t give them excuses.”
The deputy speaker also noted that the directive by President Museveni to stop exportation of raw materials including iron ore is implemented, noting that it is will greatly benefit local manufacturers like Unisteel Investment Uganda Limited that depend heavily on these raw materials.
The Managing Director of Unisteel Investment Uganda Limited, Xu Shicun said the factory covering 140,000 square meters in Mbale Industrial Park has an investment capital of Shs367.7billion($100million)
“Unisteel exemplifies the fusion of modern technology and steel production, boasting state- of-the-art facilities that incorporate advanced automation, sustainable practices, and eco-friendly production processes,” he said.
“Our production capacity is a testament to our commitment to excellence, with an annual production capacity of 700,000 metric tons of high quality and standard steel products, including steel bars, wire rods, hot rolled steel coils, prepainted steel coils and galvanized steel coil among others which are for both the local market and also export.”
He said the first phase of the plant covers 50,000 square meters and employs nearly 500 local workers.
Shicun hailed government’s ten-year tax exemption policy extended to enterprises within the industrial park which he said has provided them with strong backing for their future growth and expansion.
“The government’s efficient customs clearance services have saved us valuable time, significantly improving the construction and operational efficiency of our plant.”
He also hailed Paul Zhang, the chairman of Tian Tang Group and Mbale Industrial Park for supporting the factory.
“Chairman Zhang not only provided land for the steel plant but also offered millions of dollars in financial support and one-stop support services. This has helped us save both time and communication costs, fast-tracking the development of the steel plant.”
On the other side, Zhang asked government to work on the issue of shortage and unstable power supply to the industrial park.
“The first phase of Unisteel with an annual capacity of 700,000 tonnes steel requires a power demand of 70MVA. However, there is currently only one 50MW mobile substation in the park. The government had promised to build a 240MW substation, but construction has yet to begin. I implore the government to honour its commitment to complete the 240MW substation as soon as possible to ensure sufficient power,” Zhang said.
He also asked government to accelerate construction of infrastructure such as roads, water supply and drainage in the park .
“We are asking Parliament and the government to approve the budget funds as scheduled, speed up the construction of the park’s infrastructure, and avoid delays.”
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