Flame Tree Group is betting on the Mozambican economy by putting up a water tank manufacturing plant. The manufacturer and distributor of plastic tanks, cosmetics, and snacks announced the opening of its new water tank facility, a branch of Rino Tanques Lda, in Nampula, to serve the northern part of Mozambique.
Flame Tree Group Chief Executive Officer Heril Bangera said the new facility will be able to manufacture a wide range of plastic tanks up to 10,000 liters and that the company has not been able to cater for the northern part of Mozambique, adding that the move will now strengthen its market reach. Previously, deliveries to northern Mozambique would take a turnaround time of 8 days to and from Maputo.
The move is part of Flame Tree’s strategy to build a diversified portfolio of African-manufactured brands for African consumers, covering plastics, cosmetics and food in multiple markets.
“Flame Tree Group Holdings as a whole is very excited with this development. In Mozambique, we have not been able to cater to the northern part and as such we will now be able to strengthen our market position by covering a bigger geographical area of the country,” Mr Bangera said.
During the period ended June 30, sales and distribution costs doubled to Sh175 million, perhaps indicating the need to set up a manufacturing plant in Mozambique to lower costs.