Manufacturing projects

[yosef]

Farmers’ Co-op Union Starts Making PP Sacks

Becho Weliso Farmers’ Cooperative Union constructs factory at 21.7m Br in Tulu Bolo Town, Oromia Regional State

The Becho Weliso Farmers’ Cooperative Union (BWFCU) became the first union to start manufacturing multipurpose sacks that can be used for various types of cereals and grains. The polypropylene (PP) sack factory, which was constructed at a cost of 21.7 million Br on a 2,777sqm plot of land, 80km west of Addis Abeba, in Tulu Bolo Town of Southwest Shoa Zone, Oromia Regional State, was inaugurated on Sunday, June 5, 2011.

“The opening of these kinds of factories will help farmers reduce the money and time it cost them trying to find sacks for their produce, as there is a shortage in the market,” Yaregal Aysheshum, director general of the Federal Cooperative Agency, told Fortune. “They would also save foreign exchange as most of the sacks are currently imported.”

The factory has the capacity to produce 80,000 sacks daily, but has not been producing at full capacity this past week.

The factory is provided with 380KV from the Ethiopia Electric Power Corp (EEPCo), but a congestion of electricity in the transmission line around the area has decreased our power supply during the day,” Dejene Hirpa, general manager of BWFCU, told Fortune. “We have been using only 340KV of power during the day, forcing us to work at just above 50pc of our capacity, producing around 45,000 sacks daily.”

EEPCo is building a new transmission line, which would solve the problem, according to the general manager.

Fortune

Parachute, drogue chute factory inaugurated

ADAMA (ENA) – A parachute and drogue chute factory constructed by the Metals and Engineering Corporation Adama Garment Industry at a cost of 32 million birr was inaugurated.
While workers of the industry celebrating May 28, the industry manager Gashaw Yimer Monday said the factory would save foreign exchange worth 16 million US dollars by producing two parachutes and drougue chutes a daily.
He said the expansion project helps earn foreign exchange by exporting manufacturing outfits to neighbouring countries.
The corporation is actively engaged in the construction of the Grand Renaissance Dam.
An official from the corporation, Goitom Kebede on his part urged the employees of the garment to discharge their responsibility with commitment and safeguard the achievements of May 28.
Adama Garment Industry has 980 workers of whom 85 per cent are women.

Source: Govt. News Agency

[yosef]

Solo Pesticide Producer to Launch Two New Factories
Adami Tulu Pesticide Processing plans to construct mosquito net, herbicide factories at 26m Br

Adami Tulu Pesticide Processing SC, the only pesticide producer in Ethiopia, is to inaugurate two new factories at a total cost of 26 million Br for the partial manufacture of mosquito nets and production of herbicides by the end of the year.

The factories are to be constructed near Ziway Town in Oromia Regional State, 170km east of Addis Abeba, by Adami Tulu, a government enterprise that was established in November 1998 with a total capital of 40.5 million Br.

“Out of the total of around three million nets imported annually at a total cost of 11 million Br, we plan to initially stitch around one million mosquito nets with a new stitching plant constructed at a cost of 15 million Br,” said Samuel Halala, general manager of Adami Tuli, which was restructured as a share company in January 2000.

The machinery for the factory was imported from China through Tianjin Bohai Chemicals Import & Export Corp, according to the general manager. The factory, which will be erected in July 2011 and start production in August, is expected to save Ethiopia 4.5 million dollars, amounting to around 40pc of the cost of importing malaria nets annually, Samuel claimed.

“Upon reaching full capacity, the factory will process all three million mosquito nets, saving the country up to 14 million dollars in foreign currency with the expertise and technological knowhow from the Chinese company,” Samuel told Fortune.

Fortune

[yosef]

Saudi Investor Set to Start Bottling Water
bu Thiyab Holdings Co expects to be operational by September 2011

Abu Thiyab Holdings Co, owned by Mohammed Hussein Mohammed Abu Thiyab, a Saudi investor, is to start bottling purified water in September 2011. The construction of the plant is being finalised on a three-hectare plot in Gelan Town, 35km east of Addis Abeba, with a total investment capital of 35 million Br.

“We initially took the investment licence on May 5, 1998, and obtained the land on May 14 that year, but problems with the contractor and land issues caused delays in starting operations,” Ahmed Hassen, general manager of Abu Thiyab, told Fortune. “Once we start operations in September, we plan to produce 4,500 bottles per hour for 24 hours in three shifts. This will allow us to produce 27 million bottles annually.” The factory plans to start operations with only 50 fulltime employees. It has spent 22 million Br on imported machinery and nine million Birr on civil construction works, Hassen claimed.

Once the plant becomes operational, it plans to manufacture 1.5-litre, 2.5-litre, and 25-litre plastic bottles of purified water sourced from underground around the factory’s site. Simultaneously, the company, which was established in Saudi Arabia 40 years ago, would manufacture the plastic bottles. “We plan to initially produce the water for local consumption, but eventually export it to neighbouring countries and Gulf States,” Hassen told Fortune.

The company plans to open a juice production facility inside the plant in the near future, the general manager claimed. The plant is Abu Thiyab Holdings’ first investment outside of Saudi.

Prism Spring Water Development is one of the 11 companies engaged in bottling purified water in Ethiopia. Debre Berhan Natural Water bottles Aqua Safe, Great Abyssinia bottles Abyssinia, Pacific Industrial bottles Oasis, Burayu Spring bottles Burayu, Alemayehu Natural Water bottles Yes, Electro Commercial bottles Origin, TGMD bottles Real, Cool Moha Soft Drinks Manufacturing bottles Cool, Seka Business Group bottles May Lomi, and Arcad bottles Nile.

Fortune

Habesha Awards Chinese Firm $30m Turnkey contract for brewery

Lehui Food Machineries Co, a Chinese company, was selected for the design and commissioning of the factory of Habesha Breweries on Friday, June 24, 2011. The contract for the factory, to be built on 75,000sqm of land in Debre Berhan Town, 130km north of Addis Abeba, was awarded on a turnkey basis at a total cost of 30 million dollars. The factory’s site has abundant water resources and barley production.

Ziemann Ludigsburg from Germany and Techno Expo International Business Co from the Czech Republic participated in the bidding process. “We made the decision after 30 days of deliberations,” said Yonas Alemu, CEO of Habesha Breweries. “We also visited China for 15 days to study the company’s track record, set up, capacity, and manpower.”

A total of 16 companies initially showed interest in the turnkey project of which eight submitted technical proposals. Eventually, the three were shortlisted. The winner is expected to start discussions with Habesha on the implementation of the project this week with the contract expected to be finalised in two weeks, according to Yonas.

Habesha has slated a 13-month timeframe for the completion of the project. “We expect the critical machines to come from Europe; and the basic engineering machines, such as cyclo-cylindrical tanks, to be from China,” Yonas told Fortune. “The raw materials are expected to be sourced from both locally and abroad.”

The factory plans to produce about 300,000 hectolitres (hl) annually with plans for eventual expansion to 500,000hl, the CEO claimed. The factory plans to employ about 350 employees upon becoming operational and export 20pc of its products mainly to Israel, North America, and the soon to be independent state of South Sudan, according to Yonas.

Fortune

[yosef]

Franchising to begin in Ethiopia: ADB

Tuesday, 21 June 2011 14:21
By TAMIRU TSIGE

The African Development Bank (ADB) announced of its efforts to attract franchises to Ethiopia using existing renowned Ethiopian brands, thereby boosting trade activity in the country. The announcement is part of the agenda set for a symposium on the concept of franchising underway at the Addis Ababa Hilton as of Monday, June 20, to be conducted by a group of experts from South Africa, the organizer of the event, Mulugeta Agaze (PhD), divulged to The Reporter.

The organizer, who stated that the business of franchising has proven lucrative in 12 African nations, asserts that the venture will be just as viable in Ethiopia – so much so that it prompted the Japanese government’s conviction, and its funding for the entire symposium.
The symposium will feature in-depth revelations into how to buy franchising rights, how to sell them, the litigation involved, how to effectively carry out such businesses, and about royalties payable to the brand owners, according to Mulugeta.

The business of franchising is also a means of transferring knowledge and technology, as the organizer avers. And since the business is an infallible and permanent one, banks are liable to extend loans to the sector, as depicted in the experiences of other countries, Mulugeta said. “Things will not be any different in the Ethiopian context,” he stressed.

The symposium, which was organized through invaluable assistance from the Ethiopian embassy in Pretoria, South Africa, is being attended by big brand names from the international business scene, the local business community, consultants, legal experts, representatives form the Ministry of Trade, various government organs and investment professionals, according to Mulugeta.

Reporter

[Simfan34]

YESSSSSSSSSSSSSSSSSS!!!!!!!!!!!!!!!!!!!!!

When can I eat at Nando's after shopping at Woolworths to give a present to my cousin for his wedding at the Four Seasons?

[mike7743]

Originally Posted by Simfan34

YESSSSSSSSSSSSSSSSSS!!!!!!!!!!!!!!!!!!!!!

When can I eat at Nando's after shopping at Woolworths to give a present to my cousin for his wedding at the Four Seasons?

[yosef]

Local Company produces water purifying powder


Bishan Gari produces 60 mln. sachets of water purifying powder

ADDIS ABABA – Bishan Gari Water Purification Industry, the only one in the country, said it has maximized its total annual production of Water purification powder to over 60 million sachets for local consumption and export. Mekedes Demise, Head of Marketing and Business Development of Bishan Gari, told that the Industry has been producing water purification powder that enables to provide 1, 170 million litters of clean drinking water annually.

According to Mekedes, the chemical provided by Bishan Gari meets international standard and quality approved by local and international medical institutions and concerned organizations. The firm is committed to increase affordable access to potable water supply for all those who need it, Mekedes said. Although Bishan Gari is the only Industry in Ethiopia working in water purification, there are other NGOs importing and supplying other water purification chemicals from abroad.

According to Mekedes, Bishan Gari should play a greater role in the rural areas where most people use water from rivers, ponds, lakes and wells.
She also said that the very objective of the company is to supply water purifier to such areas and contribute to reducing water born diseases.

Kassahun Yaei, Water Specialist of Bishan Gari, also said that the water purification powder produced by Bishan Gari contains mixtures of aluminum sulphate, calcium hypochlorite and soda ash in a 2.5 gm sachet.
Bishan Gari water purifier is a flocculent disinfectant and fulfills all of these criteria, the water specialist said, adding that Bishan Gari water purifier cleans water up to 99.9 per cent eliminating the risk of diarrhea and water born related disease.

Source: Govt. News Agency

here is there facebook page: http://www.facebook.com/pages/Bishan...54268847943260


Water purifying to help the people...One step forward. Get ready for one step back below:

EFFORT to construct 2 billion birr factory

The Endowment Fund for the Rehabilitation of Tigray (EFFORT) is in preparation to erect a PVC raw materials producing factory at an outlay of two billion birr. The raw material will be produced from limestone and it will be set up around Mesobo area in the Tigray regional state – an area believed to house large limestone deposits.

The manufacture of PVC products that are used in the construction and water development sectors import close to 40 metric tons of raw material. It is this niche that the factory aims to capitalize on, thereby reducing foreign currency flight.

According to sources, the technology the factory employs will be Chinese, although decisions have yet to be made. The company is under formation, overseen by Ezana Mining Development – another EFFORT company. This factory will become the fourteenth EFFORT company next to Mesobo Cement Factory, Mesfin Industrial Engineering, Baba Dimensional Stone, Sur Construction, Express Transit, Trans Ethiopia, Addis Pharmaceuticals, Guna Trading, Hiwot Agriculture, Sheba Tannery, Experience Ethiopia, Almeda Textile and Ezana Mining Development.

Reporter

[yosef]

Tiret Shells out 670m Br to Construct Local Malt Factory
The development of the Gonder Malt Factory will help meet demand: say local breweries

The Gonder Malt Factory, owned by Tiret Endowment Investment Organization, has announced that it will start producing malt by December 2011. The factory, located in Gonder which is 658km from Addis Abeba, has started constructing a malt factory adjacent to Dashen Brewery, investing 670 million Br. The factory covers an area of four hectares and will soon be open for production.

The factory, when complete, will be the second malt factory producing 15,000tn of malt annually, of which 10,000tn to 12,000tn goes to its affiliate, Dashen Brewery. The lone malt factory in Ethiopia, Assela Malt Factory, located 164km from the capital, is up for auction by Public Enterprises Supervising Agency (PPESA). It was established in 1984 with a start-up capital of 9.2 million Br. Construction, being done by Afro Tsion Construction Plc, has seen 40pc of the construction complete, Tadesse Kassa, CEO of Tiret, told Fortune.

Tiret is an endowment established in 1995 in Amhara Regional State by pooling resources under the Amhara National Democratic Movement (ANDM) and the ruling coalition, EPRDF. It administers five companies: Tikur Abbay Transport Plc, Dashen Brewery Plc, Ambasel Trading House, Zeleke Agriculture Mechanisation, and Belesa Logisitcs & Transit. [...and another one ]

The organisation foresees itself playing a meaningful role in the development of the region by 2020, by creating a fortune of 20 billion Br, claims the company’s profile. “We are planning to minimise the amount of malt that is being imported from Europe, Kenya, Sudan, and other countries,” Tadesse said. “Close to 20,000tn of barley will be bought from farmers in Gojjam as well as parts of Gonder’s and Amhara’s barley growing regions, and 65pc of it will produce malt.’’

“We believe this factory will be helpful in generating revenue for the farmers and will provide enough malt for the breweries,’’ Tadesse said. The total demand of malt in the country is estimated to be 61,504tn a year, with Assela Malt Factory producing 22,500tn a year.

To date, the 33,430tn of malt imported in 2010, was valued at 301.3 million Br, with 25,000tn, 5,750tn, 2,010tn, and 670tn imported from Belgium, France, Germany, and the Netherlands, respectively, according to the Ethiopian Customs and Revenues Authority (ERCA). However demand for malt is expected to reach 42,912tn this year. The demand is expected to reach 86,542tn by the year 2020, according to the Central Statistics Authority (CSA).

There are around five major breweries in Ethiopia: BGI Ethiopia, Dashen Brewery, Meta Beer, Bedele Beer, and Harar Beer. This year, they projected a total of 64,579tn of malt, 22,500tn and 42,079tn from domestic and imported sources, respectively. The unsatisfied demand of malt will grow to 64,041tn by 2017, according to CSA.

Tiret announced an international tender where 15 companies showed interest, including companies from the Czech Republic, Greece and Germany. The company has already signed a contract for the supply of machineries priced at 17.1 million dollars with a Buhle GmbH, German company, winning the other five tenders that made it to the final with its price and proposal.

“The factory plans to provide malt to all the breweries in Ethiopia and export it to other countries,” Tadesse said. “It is going to be helpful for Raya Brewery because it is going to minimise the transport costs as well as the inventory costs,’’ says Lemma Bekele, manager of Raya Brewery.

Fortune

[abesha]

Cadila Ethiopia to Receive International Good Manufacturing Practices Certification

Cadila Pharmaceuticals (Ethiopia) P.L.C is set to receive official international Good Manufacturing Practices (GMP) certification as per Pharmaceutical Inspection Cooperation Scheme (PIC/S) conformity.


The company, which will receive certificate on Saturday August 6, 2011, will be the first Ethiopian pharmaceutical formulation manufacturing company to be certified. The company has invested a great deal of time and resources with the expectation that this certification will help in opening the door for the export opportunity of the company product, according to Engineering Capacity Building program (ecbp).

ecbp, an Ethiopian program established under the Ministry of Civil Service with the support of the German government, has also noted that this certification, will allow companies to export their products to the global market. The overall activities of GMP upgrading include building premises modification and renovation, installation of equipment, quality control, production improvement, documentation and utility system improvement,” the statement noted.

Cadila Pharmaceuticals (Ethiopia) P.L.C is one of the first exemplary company to be certified as per PIC/S conformity. Cadila Pharmaceuticals (Ethiopia) P.L.C was established in September 2007 with a strategic partnership of two Companies (Cadila Pharmaceuticals LTD and Indian Multinational Pharmaceuticals manufacturing Company) and an Ethiopian Company, ALMETA IMPEX PLC.

Cadila Pharmaceuticals supply its products to the local market, with the Capacity to manufacture 390 million tablets, 165 million capsules and 1.44 million liters per liter per year in 3 shifts of 8 hours each. Over the last four and a half years it has been working closely with the pharmaceutical industry in Ethiopia in order to make companies more competitive and increase their Good Manufacturing Practice (GMP) standards to internationally accepted levels.

Pharmaceutical Inspection Cooperation Scheme (PIC/S) is a cooperative arrangement between health authorities of European Union and other countries. It is an internationally recognized organization. This PIC/S conformity certification ensures high quality, safe, and effective products are being produced at Ethiopia factories.

The program is designed to foster the on-going economic development of Ethiopia by improving the competitiveness of local industries in collaboration with the Ministry of Trade and Industry (MOTI), the private sector and other relevant institutions. ecbp is formulating and implementing demand-driven interventions which upgrade the capacity of the selected sectors and support institutions.

GMP is designed to minimize the risks involved in any pharmaceutical production that cannot be eliminated through testing the final product. GMP helps to boost pharmaceutical export opportunities, since most countries will only accept import and sale of medicines that have been manufactured to internationally recognized GMP.

http://www.newbusinessethiopia.com/i...amp%3BItemid=8

[abesha]

China to take second industrial park in Dire Dawa

Chinese investors are to lease an Industrial Park from the Dire Dawa City Administration which will be the second lease of an industrial area given to Chinese firms. Ibrahim Yusuf, city manager of Dire Dawa City Administration, told Capital that Dire Dawa, one of the two chartered cities directly accountable to the federal government, has arranged for 30 hectares of land in the industrial zone area, that is around Melka Jebdu, approximately 15 km far from Dire Dawa city, for Chinese investment.

The city administration prepared 100 hectares of industrial land four years ago, which included a lot of infrastructure needed for the industry.

Since then several local and foreign based investors have invested in the area, and some of them have even started activities. The Turkish textile industry and the Chinese cement factory are some of the biggest investments in the zone.

Currently, the city administration has arranged for the Industrial Park to be given due attention to the Chinese investors who wish to participate in various sectors, mainly in textile and related industries.

Dire Dawa, located at a distance of 330 km from the port of Djibouti is attracting more investors due to its closeness to the port, which is the main point of access for international trade for the country.

In the past week PM Meles Zenawi discussed such matters with Chinese potential investors when he visited China.

During the discussions the PM held with Chinese potential investors, he promised them that the park in Dire Dawa will transfer to a low lease price.

Chinese investors already have an industry park in Dukem, 30km east of Addis Ababa. The Chinese industrial park shall be the third foreign investment park in Ethiopia after Turkey and Egypt.

The Chinese industrial park at Dire Dawa will be the first to be situated a significant distance from the capital, 515km southeast of Addis Ababa.

Currently, there are about 316 Chinese investment projects which are fully or semi-operational in Ethiopia and over 900 projects are in pre-implementation phase.
The Ethiopian government has much recorded interest in increasing Chinese investment and integrating it into the five year growth plan.

http://capitalethiopia.com/index.php...-news&Itemid=4

[AlexBelay]

EFFORT’s Effort at Mining Taking Form


The Endowment Fund for Rehabilitation of Tigray’s (EFFORT) bid to become the first local company to establish an Iron Ore Mine and Steel Factory has passed the first step with positive response from companies willing to do the feasibility study.

A total of 18 international and local companies showed interest in the invitation to do a feasibility study for what is perhaps the first attempt to establish a highly industrialized venture.

The endowment fund is planning to erect the steel manufacturing plant in Shire, Menteblcb wereda, in Tigray Regional State, 1080km North of Addis Abeba. Ezana Mining Development (EMD), one of the five companies under the umbrella group established in 1993 with a capital of 1.4 billion Br, has already prospected on 80sqm. An estimated reserve of 180 million tonnes has been identified, according to Yared Adamu, head of investment business development department for EFFORT.

Out of the companies that showed interest, many of them are international consultants. They include the India-based TATA consultancy service, which is part of Tata group established in 1968, comprised of 114 companies, and listed as one of the wealthiest groups with 98.7 billion dollars, as well as the China-based Mastell consultants.


http://www.addisfortune.com/EFFORT’s...ing%20Form.htm

[abesha]

Thanks for posting. We must develop the steel industry; you can't have industrialization without steel.

[AlexBelay]

Bidding for 1.3m tones Steel Factory Sees Nine Interest
The bidding process for what could be the first and biggest steel factory, Tossa, with a capacity of producing 1.3 million tonnes a year is under way with nine international companies having shown interest.

Tossa Steel Factory, established by Mohammed Al-Alamoudi (Shiek), invited offers for the factory which is to be built around 30km from Kombolcha, 376km north of the capital in the Amhara Regional State a month ago.

The company has already received the go ahead for 300ht of land from the region. However, there are two possible plots the company is looking at, according to Shimelese Shiferaw, head of environmental protection and land administration office of Debub Wollo Zone, where the plots are located.

Representatives of the companies - two from Germany, three from China, two from Italy, one from South Korea, and one from France –have shown interest in the factory, even visiting last week to assess the project and financial risks before submitting their bids ahead of the December 16, 2011 deadline.

http://www.addisfortune.com/Bidding%...20Interest.htm

[yosef]

Saygin B.M. Technology Group LLC to construct a cable manufacturing plant

Story in Capital:
DBE’s biggest loan ever for Turkish company

In one of its largest loans to the private sector the Development Bank of Ethiopia (DBE) is providing about 1.42 billion birr to a Turkish company, Saygin B.M. Technology Group LLC for the construction of a cable manufacturing plant. The company had asked for 2.1 billion birr, which is said to be one of the largest loans a private company has ever applied for.

Saygin B.M. Technology Group LLC intends to construct the plant on 15 hectares of land outside Sebeta town, 24Km west of Addis Ababa in Oromia special zone.
Tadesse Hatiya vice president credit services at the Development Bank of Ethiopia said the company intends to construct power cables and optical fiber. DBE officials had earlier visited the company’s main centre of operation, in Kayser city, Turkey.

The loan is expected to cover 50 percent of the costs for the cable plant, while the rest will be covered by Saygin B.M. Technology Group itself. The loan will be released in phases according to the needs of the plant and most of the money is said to be going for steel structures and machinery supplies.

The construction of the plant is expected to take six months to finish and they hope it will begin operation before the end of the year.

read the rest @ Capital

[FKebede]

[yosef]

nice vids FKebede

Eyeing an Export Market, Tikur Abay Set to Manufacture Safety Shoes

The recently privatized Tikur Abay Shoes S.C. has installed new machinery worth 1.1 million dollars from DESMA, a Germany company, through the supplier’s local agent, Hi-Tec Company. Trial production for safety shoes started on Saturday, February 3, 2012, at the Factory, located in Asqo area, on Ambo Road.

Safety shoes, which protect feet from punctures, compression or falling objects, are especially applicable in construction or industrial settings. They are supposed to have insulation against heat, cold and electricity, be resistant to water penetrations and punctures, and have a steel to cap, according to 2004 specifications set by the International Organization for Standardization (ISO) of which Ethiopian Standards Agency (ESA) is a member.

All safety shoe supply in Ethiopia was imported from foreign countries as none of the 14 local shoe manufacturing factories in Ethiopia produced it. The country has imported 151tn of such shoes for 501,210 dollars in 2009/10, and 173tns worth 647,730 dollars the previous year. However, Anbessa Shoe Factory, with a production capacity of 5,400 shoes a day, has already started production of these accessories around two months ago, according to manager Solomon Temechache.

Tikur Abay had floated an international tender at the end of 2009, to acquire machinery in order to produce safety shoes. In November 2009, the international tender had attracted nine bidders, including ORYX International, Electro-Technical Italia, Centro Machin and High-Tech Solutions, a local industrial machinery supplier established eight years ago by Hashim Jemal, a mechanical engineer. High-Tech represented Deutsche Schuhmaschinen (DESMA) at this tender.

[...]

Tikur Abay claims to be pioneer in the local safety shoe industry, despite Anbessa’s prior entrance, due to the fact that they are using a technology called direct injection. Usually near the end process of the footwear, manufacturing comes something known in the industry as lasting where the soles of the shoe are attached with the upper section.

“There are five ways of attaching shoes to the soles, including cementing method which most companies use, where the insoles are attached to the upper part using a glue,” Hailekiros Debesay, shoe manufacturing technology directorate director at the Leather Industry Development Institue (LIDI), told Fortune.

Other ways include injection construction where different chemicals are melted into a mold to be shaped; soble construction where the sole is stitched to the upper part; Moccasin construction, where the soles and the sides are one piece with stitching done at the top; and welt construction, usually used for high-fashion shoes, where the sole is made of leather, according to Hailekiros.

The direct injection technology is needed to properly manufacture safety shoes, because it makes it airtight, Abebe Teklu, general manager of the company told Fortune. Direct injection machines are available in other shoe manufacturing companies. What may be the difference for the machine Tikur Abay has imported is the kind of soles involved, which are double polyutherane (Pu).

read the rest @Fortune

[abesha]

Twelve new leather projects this year

Global Companies from China, Italy, India, Sudan, Israel, Turkey, Germany and the UK have 27 new leather investments primarily in footwear and garments.
Italian, Indian, Chinese, German and British companies will begin operating nine leather product investments and three finished leather investments. The 2.5 billion birr projects will be able to produce around 27,000 pieces of finished leather, 16,000 pairs of shoes and 2,000 garments.

According to the Leather Industry Development Institute (LIDI) the new leather factories will be located in Addis Ababa, Modjo 73Km south east of Addis Ababa, Gonder 744Km north of Addis Ababa and Sendafa 39Km North West of Addis Ababa.

The new leather projects expected to commence production this year are in line with the government’s recent directive which discourages the export of crust.

LIDI was established to support production in the leather industry, investment in the sector and marketing activities. It also gives technical support for factories to construct treatment plants to minimize environmental pollution.

The Ethiopian government aims to earn USD 206 million in revenue from the leather sector in the current fiscal year.

By the end of the Growth and Transformation Plan (GTP) the government expects USD 500 million in revenue from leather exports and has adjusted tax for imported raw materials to accomplish this goal.

The Ethiopian Leather Industry Development Institute recently teamed up with the Ethiopian Leather Industry Association (ELIA) to organize the fifth African Leather Fair (AALF) which was held from March 1-3, 2012 focusing on high end local products in order to boost leather export revenues.

The leather fair brought 185 exhibitors from Ethiopia and 37 other countries. It featured a wide array of leather products including foot wares, chemicals and garments.

ELIA is a private association that currently has 47 companies as its members represent a cross section of producers and exporters of animal products including cows, goats, sheep and camels.

http://capitalethiopia.com/index.php...ital&Itemid=27

[abnet]

Huajian of China's Ethiopian Export Zone may generate $4 biillion USD

By William Davison - Mar 22, 2012 8:20 AM ET

Huajian Group, a Chinese shoe maker, plans to build a manufacturing zone in Ethiopia that may generate $4 billion of exports a year within a decade, Vice President Helen Hai said.

Construction of the 320-hectare (791-acre) site in Lebu on the outskirts of the capital, Addis Ababa, may start before the rainy season begins in June, Hai said in an interview on March 20 in Dukem, 30 kilometers (18 miles) southeast of the city.

“It should start in May with my own investment,” she said. “We will own it and we will manage it. The government promised me in two weeks’ time to finalize the process.”

Huajian Group, based in Dongguan, Gaungdong province, produces about 20 million pairs of shoes a year for brands including Calvin Klein (6625B) and Guess, according to Hai. Ethiopia generated $65.8 million from shipments of leather and leather products in the six months through December, up 62 percent from a year earlier, according to the Trade Ministry. Total exports last year were $2.8 billion, it said.

Ethiopia has the largest livestock population in Africa, according to the Intergovernmental Authority on Development, a seven-nation regional bloc. In 2010, the Ethiopian government said it planned to license more than 703 billion birr ($40.3 billion) worth of investment projects over five years, helped by laws that prioritize investment in industries including manufacturing, leather products and tourism.

World Bank

Ethiopia can maintain its economic growth rate by developing manufacturing of clothing, leather, metal, wood and agricultural products, World Bank Chief Economist Justin Yifu Lin told reporters in Addis Ababa on March 18 at the launch of the bank’s Light Manufacturing in Africa book. Ethiopia’s economy grew 7.5 percent in 2011 compared with 8 percent in 2010, according to International Monetary Fund data.

“Light manufacturing can offer a viable path for Ethiopia and other sub-Saharan African countries as they transform their economic structure and strive for productive job creation,” Lin said.

The so-called Ethio-China Light Manufacturing Industrial Special Economic Zone will require $2 billion of investment over 10 years, according to Hai. Cheaper labor costs, domestic supplies of leather and preferential access to European and U.S. markets are the primary attractions for investing in Ethiopia, she said.

“Several million dollars” has already been invested in Hua Jian International Shoe City Plc in Dukem, which started producing shoes for the U.S. market on Jan. 5, three months after Ethiopian Prime Minister Meles Zenawi invited the company to invest, Hai said.

Chinese Workers

The importation of Chinese workers and inputs for the Ethiopian operation will be phased out as Ethiopians are trained and domestic leather quality improves, she said.

Huajian’s factory in Dukem, which currently has equal amounts of Chinese and Ethiopians among its 500 workers producing 1,000 pairs of shoes a day, will be moved to Huajian’s Special Economic Zone next year, Hai said.

“Some of the biggest Chinese clothes makes are interested” in the zone, she said. “The issue in China is that rising labor costs and exchange rate are making manufacturing difficult.”

Countries like Vietnam that sell $8.2 billion worth of garments a year outperform Ethiopia, which produces $10 million annually, because they have lowered transaction costs, Lin said.

Streamlined customs procedures, easier access to foreign exchange and the construction of an industrial zone near Djibouti’s port, where Ethiopian goods are shipped from, would solve the “most important trade logistics issues,” according to the World Bank book.

If these measures are taken “there is no reason they can’t scale up production to the same level as in Vietnam,” Lin said.

The new zone near the capital will eventually employ 100,000 workers who will be given food, housing and schooling on site, according to Hai. The China-Africa Development Fund and the International Finance Corp., the World Bank’s private- lending arm, are interested in backing the project, she said.

To contact the reporter on this story: William Davison in Addis Ababa via Nairobi at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson in Nairobi at pmrichardson@bloomberg.net.

http://www.bloomberg.com/news/2012-0...4-billion.html

[Simfan34]

This is exactly what we need to be seeing? But were the initial factories in China owned by the supplying companies or the producers? We need to be replicating that, and not just the outsourcer's outsourcer.

[yosef]

Originally Posted by Simfan34

YESSSSSSSSSSSSSSSSSS!!!!!!!!!!!!!!!!!!!!!

When can I eat at Nando's after shopping at Woolworths to give a present to my cousin for his wedding at the Four Seasons?

you maybe close to getting that soon....look below

Originally Posted by Vildana

Is Walmart coming to Ethiopia?
http://www.thereporterethiopia.com/N...ate-entry.html