NEOPLAN STILL IN DISTRESS

June 24, 2022
3 years ago

The One-District, One-Factory (1D1F) project is being finalised by the government in order to include the coach manufacturing business Neoplan Ghana Ltd.

To guarantee that the bus assembly company's activities are adequately supported, the government will also connect the business with a financially sound partner as part of the strategy.

 

 

This happens over a year after the government pledged to award Neoplan Ghana a contract to build 100 buses as a step to revive the business and save it from going out of business.

 

 

To produce even one coach for any enterprise, the company has not yet signed any contracts.

 

 

 

Due to its inability to pay its employees and fulfil its obligations to other service providers, the firm is in danger of shutting down once more.

In an interview about the future with a Deputy Minister of Trade and Industry, Michael Baafi, he emphasised the government's commitment to doing everything was necessary to revive the failing business that had been responsible for coach manufacturing in the nation since 1974.

 

Context

 

President Nana Addo Dankwa Akufo-Addo pledged to provide the firm with 100 buses as part of the interventions to prevent it from going down in October of last year when giving a tour of the plant.

 

Prior to the visit, the company had declared its impending closure since the minority shareholder was unable to continue paying the employees, and business activities had all but ceased.

 

 

Wasteful investment

 

A crew from the Daily Graphic visited the company's Kumasi production plant a fortnight ago and found that there was no work being done there.

 

 

 

Since much of the machinery was not being used, the significant investment was being wasted.

 

 

 

While the store rooms remained vacant and the dirty workshops were overrun with cobwebs, some of the workers could be seen napping in the workshop.

 

 

 

With just a few staff members and a few damaged buses left behind, the once-vibrant firm had transformed into a faint shell of what it once had been.

 

 

 

Way ahead

 

The deputy commerce and industry minister said a contract for the firm to construct 100 buses, which the government pledged, was on course during a session to see how the strategy to revive the company was going.

 

 

 

Although the initial plan to have the Metro Mass Transit Company Ltd (MMTCL) as the off-taker of the buses experienced some setbacks due to a reorganisation going on at that company, Mr. Baafi, who is also the Member of Parliament for New Juaben South, said the government was working on an alternative plan for the use of the buses to be produced.

 

 

 

"Everything with Neoplan is still going as planned. The ministry met with the business's management just two weeks ago.