Local factory expands production of vehicle spare parts
6 DECEMBER 2011 | NANGARHAR, AFGHANISTAN
With the USAID grant, the firm was finally able to meet the volume of orders they required.
Due to the harsh weather and poor condition of many roads and the vehicles that traverse them, repairs to vehicles is a big business in Afghanistan. Vehicle workshops generally rely on imported auto parts from Pakistan, South Korea, and other Asian countries. However, their supply is irregular, parts are expensive, and there is no guarantee of quality.
In 2005, the Shams Rubber Equipment Production Factory started making basic car parts from rubber and recycled metal using basic methods to fill this market gap. They quickly found many eager customers among parts dealers in Nangarhar, including big wholesalers working at the Torkham Border, but their production capacity struggled to meet demand, and the number of products they were able to produce was limited.
Through a value-chain improvement grant, USAID supported the Shams Rubber Equipment Production Factory by purchasing a wide array of machine tools and other equipment in order to expand their production capacity and the variety of products they can make.
With this new equipment, Shams Rubber is now able to make more than seventy different types of car, truck, and heavy machinery parts that are in high demand throughout the region. Through this grant, USAID created 20 jobs in Qargahi District, including many skilled laborers that had previously been working in Pakistan but have now returned to Afghanistan, and increased the firm’s monthly sales by more than 80 percent.
Several of the firm’s buyers expressed their gratitude to USAID for supporting Shams Rubber as they were eager to place larger orders with the firm. They preferred working with Shams Rubber because of their low prices and ability to provide after-sales service.
The owner of Shams Rubber said, “I dreamed of someday having a factory like this, but never thought that my dream would become reality. But with USAID’s support, now it is.” The firm is well placed to continue growing and expanding to meet the demand for its products in the region.
Last updated: January 12, 2015