Gov't Gives Neoplan Ghana Limited Two Months Grace Period

The government has given management of Neoplan Ghana Limited a two (2) month grace period to resurrect the company which is on the verge of collapse.

The decision was taken after a crunch meeting by the board and management of the company with the Minister of Trade and Industry, Alan Kwadwo Kyerematen.

The Managing Director of the company, Mr. Georges Nassar, who spoke to Peace FM's William Gentu in an exclusive interview explained that they have had a crucial meeting with the Trade Minister to enable them decide the fate of the company which faces closure by 31st January, 2020.

The government who has majority shares in the company has tasked the management of the company to come out with lasting solutions to salvage the company.

He lauded the bold decision taken by the Minister, Alan Kwadwo Kyerematen to prevent the planned shut down by the government.

Neoplan Ghana Limited, one of the country’s surviving coach manufacturing businesses in the 1970s, announced a total shutdown of its Accra and Kumasi branches.

During the almost 46 years of its existence, Neoplan (Ghana) Limited has built over 4,000 buses for the government, which has a 55 percent majority stake, to support the transport sector.

In its heyday, the company gave employment to hundreds of Ghanaians and also offered one of the best options for road transport passenger vehicles.

The company can employ over 1,000 workers when in full production and running the shift system of production.

The company begun the journey to its current state nine years ago when it stopped active production and started depending on minor repairs and maintenance of accident buses.

In the application letter dated December 8, 2019 making a case for the 1D1F credit facility, which checks show was received by the Ministry of Trade and Industry on December 18, 2020, the company stated that the revenue from the repairs and maintenance were woefully inadequate to meet its operational cost, hence the dire strain it had found itself in.

Coupled with that, Neoplan said over the years it had faced keen foreign competition from Korea, Malaysia, China, Sweden, Germany, Italy, France, India and Brazil among other countries, which brought buses such as KIA, Daewoo, Hyundai, Yutong, Scania, Marco Polo, Tata, Ashok-Leyland, Mercedes Benz and Volvo into the country, which had gradually pushed them out of business.