23/09/2008

The LPC Group welcomed Ugandan President Yoweri Museveni to its Leicestershire operations this week in order to discuss the potential of major investment in the African state. The Tejani family, which founded LPC in 1980, has close links to the country as they once ran a thriving coffee business there. Despite being forced to relocate to the UK over 35 years ago by Idi Amin's regime, the family still has a strong will to see their former home's immature economy grow and prosper.

The two hour visit saw the President tour two LPC sites and discuss the needs of his country with the Group's directors. The Ugandan economy currently focuses on the export of agricultural products. But despite the country itself being very fertile, and rich with natural resources, the national economy's growth remains slow as much of the country's produce is sold for far less than the price demanded by developed countries.

In response, the LPC Group revealed that it had identified a number of areas where it believes it could assist, as Amin Tejani, the LPC Group's Executive Chairman explains:

"Much of what Uganda produces is exported in its raw state, with the country getting a basic price for the commodity. Once it leaves the country significant value is added by others, which we see as a great opportunity lost. We are in talks to develop businesses that process the raw commodities before export, so that Uganda retains an increased share of the profits made on its resources."

LPC has identified pharmaceuticals, paper, wood pulping and food processing as industry sectors within Uganda that could greatly benefit from investment. Under LPC's proposals for producing pulp, for instance, the Group would set up a processing plant to create wood pulp for use in its European paper processing operation. As part of the initiative around 2.5 million trees would be planted in a joint initiative with the Government, and subsequently felled trees would be replaced. Rewards would not be confined to the economy however, as the whole operation would be designed and managed to improve the conditions for the local environment and wildlife.

The visit of Uganda's President demonstrates its focus on improving trade links with the business community in Leicester, which is now the home of many Ugandan ex-pats. Despite the clear need for investment His Excellency affirmed that his country wants "Trade not Aid!". During talks with the LPC directors he set out a clear vision of attracting industry and technology to Uganda, with private companies such as LPC helping to bring prosperity and add value to his country's economy and infrastructure.

The visit was a very positive move for both parties, as Salim Tejani, Managing Director of LPC Pharmaceuticals, confirms:

"We were delighted that The President came to LPC to meet us. Uganda has tremendous potential and with our links to the country and our business experience, contacts and access to funds, we are in a unique position to help it to take advantage. We had an excellent meeting, and the President and his team were very receptive to our ideas. We now look forward to further talks very soon."

LPC Group is the UK's largest privately owned manufacturer of soft tissue products in the UK. The company has grown rapidly and now has operations in England, Sweden, France and Belgium. The family also has a major Pharmaceuticals business based in England but operating internationally, combined turnover is over £350 million and the businesses employ over 1,200 people.

Karim Tejani, LPC's Manufacturing Director, believes that this background gives LPC both a reason and an opportunity to work in Uganda:

"I and all my brothers were born in Uganda. We're now settled and happy in Leicester but retain a great affection for and strong links with Uganda. We've worked extremely hard together to build a very successful business after starting with virtually nothing and we would love to use our business skills and knowledge now to build new businesses in Uganda. We see it as not only a good opportunity for LPC, we can also see great benefits for Uganda. There will be major employment opportunities using local labour and we'd help to train people in all sorts of business skills. We are looking at multi-million pound investment in these businesses and with the help of President Museveni and his Government we hope this will become a reality."

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