Tata Zambia Limited is a leading name in the engineering, agriculture, hotels and textile industries. The acquisition by Tata Zambia Limited of the bicycle plant in Chipata and Lusaka marks the final stage in the Tata Zambia objective of establishing Luangwa Industries Limited as a major manufacturer of quality bicycles to cater for both domestic as well as export markets.
The company was sold as a going concern, with
specific guarantees for reinvestment into the company to ensure that such
a manufacturing resource was protected. In addition to the purchase consideration,
the guarantees include commitments for;
(i) working capital expenditure;
(ii) no major redundancies of non-managerial
staff;
(iii) the Purchaser to use its reasonable endeavour
to make appropriate assessment of the present management team before effecting
any restructuring exercise.
Luangwa Industries Limited's main plant is located
in the industrial area of Chipata in the Eastern Province. The facilities
at Chipata incorporate machinery to manufacture bicycle frames, forks,
mudguards, spokes and bicycle carriers.