FMC to manufacture jeepneys in Africa

Francisco Motors Corp. (FMC) has entered into another deal that will help it recover from its financial woes.

FMC has invested in a joint venture company called Sateemax-FMC (SL) Limited in Sierra Leone, West Africa.

Sateemax will put up a manufacturing plant in Sierra Leone to assemble jeepneys and improve the transport system in the West African country.

The $25-million project will be implemented in four major phases and will include the export of manpower.

The first year of operation of Sateemax will involve the importation of completely built-up units (CBUs), construction of service centers and the planning and construction of the manufacturing plant.

The second phase will involve the assembly of completely knocked down (CKD) units.

The third year will start the parts manufacturing operation and the fourth year will involve complete assembly operation.

FMC projects that it will earn P26 million in the first year and from P300 million P600 million in the subsequent years.

FMC will transfer technology and train workers in Sierra Leone. Initially, though, FMC will send about 300 Filipino workers to Sierra Leone.

Sateemax was created on Oct. 25, 2001. The following month, November 2001, Sateemax-FMC president Musa Tarawally visited the Philippines to officially start the project and confirm an order of 100 units of CBU jeepneys.

Four units have been shipped to Sierra Leone and four to eight units per month would be shipped to Siera Leone.