Tanzania Crushing Facility Note: This project has been cancelled, because of the limited progress within the agreed timeframe.Applicant Kuhn Baumaschinen GmbH provides services and equipment to the stone crushing industry in ten European countries and wants to expand onto the African market. Kuhn Baumaschinen GmbH wants to diversify their business in line with their experience and starts quarry exploitation. Local partner Universal Electronics & Hardware is active in producing quality building materials like tiles and building blocks. It owns two big quarry sites, which are actually not exploited.The partners intend to establish a joint venture company to exploit a quarry with the most modern stone crushing facility in order to produce high quality granite aggregates in Tanzania. The present demand for aggregate is much bigger than the supply, while the market demands more and more A-grade aggregates, which the existing industry is not able to deliver.The quarry to be exploited by the joint venture, is located 125 km outside Dar es Salaam and can be exploited for at least 40 years. 70% of the aggregate will be sold to other companies in the building industry, and 30% will be sold to Universal Electronics & Hardware. The use of modern technology in quarry exploitation makes transfer of know-how and technology essential. The project will put emphasis on training local management and workforce in how to manage such a facility according to international standards with respect to work quality, security, environment and social affairs.The partners have planned additional investment in quarry exploitation in Tanzania after the pilot phase.The project will create jobs for 60 locally recruited workers, of which 45 are on basic-level. Average salary will be double to the local level. The partners will take care of safe working conditions.Corporate Social Responsibility (CSR)Kuhn Baumaschinen GmbH claims that the whole project will be executed on high international level including: environmental aspects, working conditions, labour standards, personnel policy, and health and safety of employees.NORPLAN, a specialised company regarding CSR and environmental aspects, will deal with the environmental aspects and the CSR policy. The joint venture will properly manage the project in regard to all necessary environmental standards, laws and regulations.Special emphasis is put on CSR and activities are carried out in the project respecting conventions by the ILO and OECDE and concerning labour standards, personnel policy, employee participation, health and safety issues, chain responsibility, and corruption.Impact•	Employment and working conditionsAt the end of the project the joint venture will have created 60 full-time jobs:-	five high-level in general management and quarry technical management;-	ten medium-level, in sales and marketing, administration, IT and medical staff;-	45 basic-level in production work, administrative and facility management and first aid station.The additional investment will lead to 36 jobs of which 30 basic-, five medium- and one high-level.Wages of the employees will be with an average income of 3,500 euro for basic- and medium-level around 50% higher than the minimum income in the region.Further benefits for the workforce are: health insurance; accident insurance scheme, monthly health check, free meal, own cantina and shop (sales of products produced by neighbouring farmers), free transport, bonus system for all employees.All working conditions will be geared to European standards and therefore an example for other companies in the region.•	Innovation / Transfer of knowledgeThe knowledge of implementation, operation and maintenance of mobile crushing units does not exist in Tanzania. Austrian experts will train the workers during workshops and on the job. Training will partly take place in Europe for high-level employees. Local workers will be the first in Tanzania skilled in this field.Austrian experts will give training about quarry management and planning.During the project the transfer of technology will be within the joint venture. Later on, partners intend to start leasing operations, including technical assistance.•	Chain effectsTransport companies will be subcontracted to truck the aggregate to big clients or to the depot in Dar es Salaam. The number of workers involved is unknown.Local farmers will be able to sell agriculture products to the company kitchen and shop.The building and construction sector will be provided with the increasingly demanded high quality aggregate. This will enable them to comply with tender requirement for instance government buildings. Another effect will be the less use of illegal coral as alternative for aggregate.•	EnvironmentThe project will contribute to the policy of the Tanzanian government to minimise illegal coral mining in order to protect the coral environment.The quarry will have limited negative impact on the environment: the production plant is designed according to European standards and will among others use extremely low energy consumption.A special tree planting programme will partly restore the landscape.An environmental impact assessment will be conducted through the company NORPLAN.•	Position of womenAround 25% of the 60 employees will be women, working in all levels like accounting, sales and support (office support, cleaning and facility management). The project aims to exploit a quarry on an international level using most modern equipment in order to produce quality aggregates for the building industry. The annual production will be 450,000 tons aggregate per year.