Malaysian company abandons phone plant plans

A Malaysian company has abandoned plans to invest in Zambia's first mobile-phone production plant after failing to comply with requests on specific design and manufacturing capabilities.

M.Mobile Malaysia has now pulled out of the partnership with M.Mobile Zambia, less than a month before the plant was scheduled to become operational

“The partnership has fallen through because the Asian company is going through a few major business restructuring and financial difficulties resulting in the failure to agree on the features and manufacturing capabilities,” said M.Mobile Zambian partner Mohammed Seedat on Tuesday.

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A Malaysian company has abandoned plans to invest in Zambia's first mobile-phone production plant after failing to comply with requests on specific design and manufacturing capabilities.

M.Mobile Malaysia has now pulled out of the partnership with M.Mobile Zambia, less than a month before the plant was scheduled to become operational

“The partnership has fallen through because the Asian company is going through a few major business restructuring and financial difficulties resulting in the failure to agree on the features and manufacturing capabilities,” said M.Mobile Zambian partner Mohammed Seedat on Tuesday.

The plant, which was constructed at a cost of US$3 million, has the capacity to assemble between 50,000 and 70,000 cellular phones per month, Seedat said.

The plant was expected to assemble mobile phones for local and regional markets within the Common Market for Eastern and Southern Africa -- including the Democratic Republic of Congo, Angola, Kenya and Malawi -- and the Southern Africa Development Community region, which includes South Africa, Zambia, Zimbabwe, Mozambique.

The Zambian Ministry of Commerce, Trade and Industry gave the certificate to set up the plant to M.Mobile last year.

The IDG News Service is a Network World affiliate.