A Japanese firm, Hitachi Construction Machinery Company Ltd has said it will establish an automobile plant in Lusaka worth US$10 million in the second half of this year.

Hitachi general manager for the African Department of Sales and Market, Mr. Hidemi Murata said Zambia offered substantial business opportunities that Hitachi wanted to utilise to enhance the economic status of citizens of both countries.

Mr. Murata said recently Lumwana Mine ordered machinery from Hitachi and about 100 technical staff from the company are in the country to assist the mine with setting up and operating the equipment.

He said the plant to be established by Hitachi will be manufacturing spare parts and other components for different automobiles.
Mr. Murata said setting up the plant will reduce the cost of accessing spare parts for Japanese vehicles that many Zambians own.

Hitachi was one of the 12 Japanese companies that were represented in the Japanese Trade and Investment Promotion mission that visited Zambia to explore business opportunities in the country from January 25 to 28, 2010.

The mission comprised 50 representatives from the private sector as well as the Ministry of Foreign Affairs, Ministry of Economy, Trade and Industries and Japan External Trade Operation.

The main focus of the 12 companies included mineral resources exploration, infrastructure development, energy, information, communication technologies (ICTs), rural development and agriculture.

The mission is one of the follow-up activities of the fourth Tokyo International Conference on African Development, which was held in May 2008, at which the Japanese government committed efforts of doubling Japanese investment to Africa.

The team visited Lusaka and met many government officials and later visited the mines on the Copperbelt before proceeding to Mozambique for further exploration of business opportunities.