Indian company Kamal Group has launched a US$4.5mn factory for refining furnace oil in Tanzania
The new heavy oil refinery in Zinga (Kerege) will allow Tanzanian industries to start procuring heavy oil locally. Apart from the production of furnace oil, one of the cheapest fuels available for industrial use, the refinery will also produce lubricants.
Speaking about the launch of the plant, Kamal Group chairman Gagan Gupta said, “Going by the research that we have conducted, there is no factory in Tanzania that is currently producing good quality furnace oil with proper technology. This means that Tanzania will be saving about US$15mn of its Forex reserves, which is currently spent on importing the products per annum.”
The refinery has been set up in the industrial park in Bagamoyo established under the special economic zones (SEZ) by the company.
Ministry of Industry, Trade and Investment Permanent Secretary Adelhem Meru, who participated in the launch of the plant, thanked the company for being one of the six companies that have set up private Special Processing Zones in the country. “The government will continue working with you to make sure that your investment dreams especially in these zones are achieved,” he said.
Gupta stated that the furnace oil produced at the plant will not only cater to the Tanzanian market but also be exported to other neighbouring countries like Kenya, DR Congo, Uganda and Zambia, among others. The refinery is expected to create at least 200 direct and indirect jobs for Tanzanians.
The firm has also invested in the production of steel, industrial and medical gases and power generation in the country.
