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Chinese to receive 1,000 ha. land for 'grand' industrial zone


Saturday, 28 June 2008

-First phase site hand over scheduled to take place today


Chinese investors are scheduled to receive 200 hectares of land today for an industrial zone project involving 80 "huge" factories to be built on it, it was learnt by The Reporter.
Located in Oromia region around Dukem, a small town sone 35 km. south-east of Addis Ababa, the 200 ha of land is part of the 1,000 ha plot which will be handed over to Chinese investors for what is expected to become a "giant" Chinese industrial zone in Africa, according to some observers.

Representatives of the first phase of the Chinese industrial zone will today receive the 200 hectares from the Oromia regional government president Abbadula Gemeda.

The Chinese secured the plot on a lease basis while they are expected to settle a 10 million birr payment to componset dislocated farmers.

Expected to consume an initial investment outlay of one billion birr, the first phase industrial zone project is scheduled to commence within two months.

Materials and equipment for the construction of the first phase industrial zone project and various machineries are already on their way to the port of Djibouti, according to informed sources.

The industrial zone will involve textile, garment, shoe, construction materials, electrical equipment, engineering material equipment manufacturing and food processing factories, among others.

The design of the industrial zone is planned to be similar to that found in China. Chinese designers were here earlier on to familiarize themselves with the site and to produce a conceptual design of the first phase of the industrial zone.

The first phase project is expected to create job opportunities for over 10,000 people.

High government officials and dignitaries from both China and Ethiopia are expected the attend the signing ceremony between the Oromia regional government and the delegation of the Chinese investors.

Following the signing ceremony, the handover of the site will take place.

The plan for what is expected to become a giant Chinese industrial zone in the continent of Africa was initiated and conceived after prime minister Meles Zenawi's grand visit to China some two years ago, according to reliable sources.
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The zone is located in Oromia region around Dukem, a small town some 35 km. south-east of Addis Ababa,
 

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good stuff this is the 'do it big' i like to hear from african states. one question, is this like the industrial area in nairobi but on a bigger scale?
 

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excuse my ignorance, but is 10 million birr enough compensation? and how many of these 10,000 jobs will be high paying?
 

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^^that is questions nobody here can answer..
well i thought the habeshas here would be able to give a good guesstimate.
 

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I have no idea if it's good compensation (depends on how many farmers, etc) but 10 million birr is about $1 million.
 

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I have no idea if it's good compensation (depends on how many farmers, etc) but 10 million birr is about $1 million.
that's the question i should have asked. and no that's not enough, the farmers are most likely being ripped off. here in the u.s. there are actually homes (that are not productive in any way like a farm is) on less than half a hectare for poor people (yes they are still poor just not impoverished) that routinely sell for US$1 million or more.
 

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excuse my ignorance, but is 10 million birr enough compensation? and how many of these 10,000 jobs will be high paying?
Who cares? This is a good start, this is how progress begins and it's better to have 10,000 job paying jobs then no jobs at all.

I don't think they are going to be high paying jobs because Chinese don't even pay high wages for their own workers in China.
 

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DUKEM | Eastern Industry Zone | $5billion | Under Construction

Heavy Machinery at 84tn Lugged in for Chinese Cement Factory

The factory is to support the $5b Eastern Industry Zone

Machinery weighing a total of 84tn was delivered last Wednesday, April 8, 2010, for the cement factory, which Jiangsu Qiyan Investment group is building for the sole purpose of supplying cement for the Eastern Industry Zone, yet to be constructed.

The construction is taking place in Dukem Town, in the Oromia Special Zone. Its estimated annual output of 250,000tn of cement will be used solely for the construction of the Eastern Industry Zone, according to Shimeles Wolde, director of Chemical Industry Development for the Ministry of Trade and Industry (MOTI). The factory is being constructed within the perimeter of the land allocated for the industry zone.

“The factory is being constructed very rapidly,” said Shimeles. “The speed is amazing.”

The factory is expected to be completed over the coming two months. The factory will import clinker duty-free.

Two other companies were allowed to import clinker duty-free two weeks ago after Minister for MoTI Girma Birru made the request in their favour to Minister for Finance and Economic Development Sufian Ahmed. These two are Avorniga, which has rented the Addis Abeba Cement Factory, and the new Wang Shang Cement Factory, which was constructed near Modjo.

The MoTI made the duty-free privilege request for three companies, including Red Fox, whose name was not on the list in Sufian’s letter approving the request.

“It could be by mistake. Red Fox will get the permission,” said an official at the MoTI, who is working closely with the issue.

The construction of the Eastern Industry Zone, which will cost five billion dollars, is expected to begin before the end of the fiscal year, although the five square kilometres of land that have been granted are yet to be handed over by the Oromia Regional State. Eighty Chinese companies in textile, leather, and metal industries are expected to be based in the zone.

“When the cement factory begins production, so will the construction of the zone,” said Ayenew Ferede, who follows the development of industry zones at the MoTI.

The Ethiopian Government has agreed to cover 30pc of the infrastructure development cost for the zone, according to an official at the ministry.

The project is being closely followed by Prime Minister Meles Zenawi.

Turkey and India are also in the process of developing their own industrial zones in Ethiopia.
http://addisfortune.com/Heavy Machinery at 84tn Lugged in for Chinese Cement Factory.htm

I couldn't find a thread on the Chinese industrial zones so I'll start one here.

The end of the fiscal year in Ethiopia is July I think. This is why I like Chinese investments, they freaking just do it! :banana: No sleeping on the job.
 

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:applause:

NO wonder China has developed so fast in the last few decades, they JUST DO IT.
What Ethiopian Government needs to do in the mean time is develop/strength the existing regulations in order to protect citizens and the environment.
:cheers:
 

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UPDATE

Chinese company inaugurates cement factory in Ethiopia


ADDIS ABABA, May 13, 2010 (Xinhua News Agency) -- Zhongshun Cement Manufacturing Plant constructed by the Chinese Industry Zone was officially inaugurated in Ethiopia on Thursday in Dukem town about 35 km south of Addis Ababa, the capital.

The cement factory invested by Jiangsu Zhongshun Import and Export Trade Co.Ltd, is the first project of the Chinese Eastern Industry Zone here in Ethiopia.

The 9 million U.S. dollar cement plant was inaugurated in a ceremony held in the presence of Gu Xiaojie, Chinese ambassador to Ethiopia, Yan Li, Mayor of Suzhou Municipal Government, Tadesse Haile, Ethiopian State Minister of Trade and Industry, as well as other local officials and dignitaries.

Speaking on the occasion, Lu Qi Yuan, President of Jiangsu Qiyuan Group, said the project is paid great attention by the Chinese and Ethiopian governments and attached great importance by the Eastern Industry Zone.

The president said the project engages in the integration of technology, production, sales and services.

"I fully believe that the accomplishment of the construction and the commencement of the production will play an important role of releasing the shortage of cement supply in the local market in Ethiopia. Meanwhile, it will bring a favorable social effect and economic benefit to Ethiopia," said Lu.

According to the president the production capacity of the Factory is 250 tons of cement per year.

Tadesse Haile, Ethiopian State Minister, on his part said the project by Eastern Industry Zone, plays a key role in further cementing the economic and trade relations as well as diplomatic ties between Ethiopia and China.

"The Ethiopian Government attaches a great importance to this initiative and it is expected to play a meaningful role in the development of Ethiopia's industrialization and the realization of the Ethiopian Industrial Development Strategy," said the state minister.

"The development of this project is in line with the Industrial Development of Ethiopia which mainly focuses on value addition and creation of linkages between various vertical and horizontal industries," he said.

"As a result it is expected to strengthen the global competitiveness of local industries and their contribution to foreign exchange earnings," he added.

The State Minister also said that Zhongshun Cement Factory would play a role in being a model for other Chinese companies to follow and also in supporting their establishment within the industrial zone.

He assured that the Ethiopian government would provide all the necessary support towards the development of the Eastern Industrial Zone and subsequent investment enterprises to be located in the Industrial zone. The Factory has been planted on the area of about 30,750 square meters.
(Source: iStockAnalyst )
http://www.istockanalyst.com/article/viewiStockNews/articleid/4120655

Can you believe how quickly it's been built???

Next up, the steel factory!! :banana:
 

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I think the Chinese blame the backwardness of Africa on racism, the same racism that kept them in the shadows for so long. The west are a bunch power and status addicted albinos. I hate them. They clog the media as if they are doing any good but underneath they eat on you like the termites they are, keeping you down.

Thank God the Chinese are pulling us all out of poverty, we awe it to them, the coming generations of Africans owe it to them.
 

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Hope all the new cement factories will start producing by next year, so prices could lower a bit.
There are a lot of people who have their constructions on hold because of the dramatic rise in the price of cement.
 

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It's truly amazing how fast the Chinese get things done, no red tape is in the way, they just work through it. I hope this zone really could contribute in putting Ethiopia on the path of a stable, double digit growth for some years and further infrastructural development.

lamrof said:
I think the Chinese blame the backwardness of Africa on racism, the same racism that kept them in the shadows for so long. The west are a bunch power and status addicted albinos. I hate them. They clog the media as if they are doing any good but underneath they eat on you like the termites they are, keeping you down.
Somehow I've got a hunch of that you happen to be living somewhere among us "power and status addicted albinos"... talk about parasites.
 
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