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Government Grants 50,000ht for Its Cotton Farm


Spintex, an Indian textile company, has received 50ht of land at the Kombolcha Industrial Zone in the Amhara Regional State to construct what could become the largest textile factory with five times the capacity of the current leader.

It will produce 100tn of yarn a day, which is five times the capacity of Ayka Addis.

Ayka Addis is a Turkish company that moved to Ethiopia and set up a factory at Alem Gena in Oromia.

"This company [Spintex] has promised to the Prime Minister and Girma Birru [minister of Trade and Industry] that it will export one billion dollar worth of products a year in seven years' time," a high-level government official told Fortune.

The government's target for 2009/10, as indicated in the Plan for Accelerated and Sustainable Development to End Poverty (PASDEP), was to be able to export fve billion dollar worth of textile and garment products. However, the highest amount that is now expected is only about 53.5 million dollar.

"The history of the Ethiopian textile industry will completely change," Sileshi Lema, director of the Ethiopian Textile and Leather Development Centre, told Fortune. His conviction is based on the level of foreign direct investment in the country.

Spintex was established in India in 1972 with four companies under it specialising in different areas of the textile industry. The group has been producing different machinery for spinning, weaving and knitting.

The company will fully own the factory it will establish in Ethiopia. But it has indicated that it would need a loan from local banks, an official at the Ministry of Trade and Industry (MoTI) told Fortune, which he confirmed would be awarded.

The Development Bank of Ethiopia, alone, has the capability to extend loans counted in hundreds of millions of Birr. Spintex has already received support in the form of 50,000ht of land in the Awi Zone of the Amhara Regional State for cotton farming.

With investment in the textile and garment industry gradually growing, a new point of concern has emerged, according to an expert at MoTI, because the companies that were established exclusively for export are beginning to eye the local market which is also growing. The ministry has instructed the Textile and Leather Development Centre to conduct a study on the issue.

http://www.addisfortune.com/Indian Firm to Fabricate Largest Textile Plant.htm
 

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China, Ethiopia Inaugurate Joint-venture Project

China and Ethiopia on Saturday inaugurated PVC Window Frames Factory, a joint project of the China Sichuan International Cooperation Co. Ltd. (SIETCO) and the Prefabricated Building Parts Production Enterprise (PBPPE) of Ethiopia, here in Addis Ababa, the capital of Ethiopia.

The inaugural ceremony was attended by Gu Xiaojie, the Chinese ambassador to Ethiopia, Arkebe Equbay, Ethiopian State Minister of Works and Urban Development, Kuma Demekissa, Mayor of Addis Ababa and other diginatries from both sides.

Speaking on the occasion, Gu said SIETCO has successfully undertaken several major construction projects on the African continent.

The launch of the plant is a good demonstration of SIETCO's willingness and further efforts to take part in the fast economic growth and development of Ethiopia.

"This PVC Window Factory is not only an investment by the Chinese company, but also a good example of the willingness of the Chinese government and companies to transfer suitable and applicable technologies to our African brothers and sisters; a good example of China's willingness to share our development experiences accumulated within the past decades with our developing partners," said the ambassador.

According to Zhung Mingfeng, President of SIETCO, the Company has undertaken over 400 projects in various fields during the past 30 years in more than 50 countries around the world.

Arkebe Equbay, the Ethiopian state minister of Works and Urban Development, said the factory would be a significant help to the availability of quality building materials to the country's constructions and to technology transfer from Chinese experts to Ethiopians.

Kuma Demekissa, the mayor of Addis Ababa City, on his part, said the Factory plays significant role in helping move Ethiopia's housing projects in general and that of Addis Ababa City in particular.
http://english.cri.cn/6909/2010/05/16/168s569940.htm
 

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Samsung Electronics the global leader in digital media and digital convergence technologies, founded in South Korea 41 years ago, is going to set up an assembly plant in Ethiopia for refrigerators and home appliances.

George Ferreira Chief Operating Officer (COO) of Samsung Africa told Capital that his company is doing a feasibility study to set up an assembly plant for home appliances in the country, which will be the fifth plant in Africa for Samsung.

The COO said that Samsung has continued to innovate, reaching out across the globe to identify and develop key pockets of growth in Africa.

At the Samsung Africa Forum held in Johannesburg, South Africa, where Samsung showcases the latest innovations throughout all of its product categories, from audio visual and home appliances, to mobile handsets, digital cameras and notebooks, the COO said that Samsung will also open brand shops across Ethiopia to penetrate the untapped market.

At the forum Samsung also revealed its first 3D television which doesn’t require special glasses. The company also says their TV can also be used as a white board for education.

Another product, the Samsung Galaxy S, a new class of smartphone is expected to be one of the biggest technological advances in the industry. The forum, comprised of the media, customers, distributors and top Samsung executives and government officials, aims to promote co-operation, innovation and the exchange of new ideas in technology.

Outlining the company’s roadmap for growth in Africa, Mr. KK Park, head of Samsung Electronics African Headquarters, said:
“With 980 million people, 15 percent of the world’s population lives in Africa, but the region produces only 2.6 percent of global GDP. In our view, that growth potential is an enormous opportunity to do business and increase our market share in the continent.”

“In 2010, we are focusing in on Africa’s top 10 economies, which together generate 79 percent of the region’s wealth and have almost 47 percent of the population. Our key focus continues to be on countries with large and growing populations, such as South Africa, Nigeria, Kenya and Sudan,” Mr. Park said.
Mensuir Abubakar Manager and owner of Garad Plc sole distributor of Samsung electronics told Capital that his company is doing a feasibility study to set up the assembly plant in collaboration with Samsung in the country. Mensuir was also the guest of honour at the opening of the forum held in South Africa for being the sole distributor of Samsung for the last 13 years.

Tadewos Awol Samsung country manager told Capital that Ethiopia is a strategic place to set up a plant. He added that Samsung is currently the African market share leader in the broad consumer electronics category, including being the No. 1 brand for TV’s, SBS Refrigerators.

Plans are underway to achieve leadership in other categories, including mobile phones, washing machines and air conditioners, through Samsung’s innovative product lineup, enhancing in-country marketing, strengthening distributor infrastructure, as well as tightening and improving supply chain management, he said.
Showing its strong commitment to the region, Samsung continues to expand its in-market presence with subsidiaries and branch offices, as well as the appointment of 12 senior country managers. Samsung currently employs 242 local staff across five subsidiaries and offices in Africa.

http://www.newsdire.com/business/1114-samsung-to-open-assembly-plant-in-ethiopia.html
 

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ANMOL PRODUCTS ETHIOPIA PLC is first foreign investment in Ethiopia for manufacturing of paper by ANMOL Group of Companies, India. Inspite of all odds ANMOL started this paper making project, today largest in Ethiopia producing excellent quality papers which is totally import sutbstitute and saving lot of foreign exchange for Ethiopia. ANMOL Group of Companies have wide experience of paper manufacturing as parent company is involved in speciality chemicals manufacturing, technology provider for improvement of paper quality.
 

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Ramsay Signs $1.3m Deal for Italian Shoes
Factory must produce 60,000 pairs of Geox Respira for export

Following a 1.3 million dollar deal that was signed with Geox, an Italian shoe and apparel manufacturer, on July 16, 2010, Ramsay Shoe Factory is to start production this month for 60,000 pairs of shoes that are to be shipped from November 31.

The shoes to be produced are called Geox Respira and are designed to breathe by letting moisture out and keeping water from getting in. Once produced, the shoes will be sold in Geox outlets, carrying the label, “Made in Ethiopia by Ramsay.”

The company, which was established in 1990, has the capacity to produce 2,000 pairs a day.

“Due to the design specifications of the Geox Respira shoes, we will produce only 1,500 pairs,” Zelalem Habte, managing director of Ramsay, told Fortune.

After Geox reviewed 24 samples that were sent to it, it awarded the deal to Ramsay. The shoes will be manufactured from 25pc locally produced leather, thermoplastic rubber for the soles, and reinforcement material that are imported from abroad, according to the deal.

“The leather used is to be bought from Sheba, Batu, and Afdel Tanneries which Geox specifically selected,” Zelalem told Fortune.

The shoes, for which Ramsay will be paid 19 dollars a pair, take about 20 days to reach Italy and have to be delivered to Geox by January 31, 2011.

Geox, which was established in 1995 and has its headquarters in Rome, Italy, sold shoes worth 5.4 million dollars during the first half of 2010.

Recently, local shoe companies have increasingly been commissioned to produce products for foreign brands and ship the goods to the companies. Local companies have created links with United States (US) shoe companies via the Agribusiness and Trade Expansion Program (ATEP), an initiative of United States Agency for International Development (USAID).

The programme, which began in 2006 and is to last five years, linked seven local companies with three US companies in June 2010. One of the three US companies was Brown Shoe Company Inc, one of the biggest shoe retailers and wholesalers in the US, which recorded sales of 2.3 billion dollars in 2009.

Brown has reviewed three samples and a deal for 20,000 pairs of shoes is expected to be signed soon, according to Zelalem. Brown is expected to pay an average of 14.50 dollars per pair, depending on whether it orders ladies’ or men’s shoes or a combination of both.

“Although the recent devaluation of the Birr increased Ramsay’s profit margin of Ramsay, the recent global crisis has affected our market reach over the past couple of years,” Zelalem said. “The good thing is that when companies like Geox come to Ethiopia, others will soon follow in their footsteps.”

Ramsay was established with an initial capital of two million Birr which has since increased to 13 million Br. The company produces shoes for export on its 5,000sqm plot of land, located in the industrial zone next to Kadisco Square on the Ring Road in Addis Abeba.
http://addisfortune.com/Ramsay Signs 1-3m Deal for Italian Shoes.htm


It seems we are finally starting to export finished goods. There are several shoes producers I've heard of now.
If you go to Barney's in NY, you will also see finished goods like Ethiopian scarves from Sammy Handmade in Ethiopia.
 

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Multi-Million US Dollar Leather Processing Factory Inaugurated in Ethiopia

A modern leather processing factory built in Sululta town of Oromia State at a cost of 27 million USD by China- Africa Overseas Leather Products S.C was inaugurated.

The factory, built on 80,000 square meters of land on the outskirts of Addis Ababa City, has a capacity of producing 450 million pieces of processed leather per year, General Manager of the company, He Mingliang said during the inaugural of the factory.

He said the factory employs 500 local people.

The General Manager also announces plan that the factory would be expanded if the condition is favorable by injecting 25 million USD. This will enable it to produce the stated products valued at 120 million USD.

This second phase project will also enable the plant to use 2000-2500 skins per day.

He said the factory is environmentally friendly.

Speaking on his part, State Minister of Trade and Industry, Tadesse Haile said the leather and leather products industry is one of the top priority sector identified by the Industrialization Strategy of the country.

He said the country’s five year Growth and Transformation Plan (GTP) mainly focuses on adding value on raw local materials.

Tadesse said one of the objectives of the GTP is to double the contribution of industry sector to the GDP after five years by attaining a 20 per cent growth annually.

As a result the plan is expected to strengthen the global competitiveness of the country’s leather and leather products industries thereby earn more foreign exchange.

Vise President of China Development Bank (CDB), Xin Yiren on his part said CDB and CADFund have supported and would continue to support Chinese enterprises to invest in Ethiopia.

CDB committed to promote Sino-African trade and economic cooperation and encourage more Chinese to invest in Africa, he said.

ENA
 

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Chinese company erects largest leather factory

China-Africa Overseas Leather Products S.C., a company fully owned by Chinese investors, on Wednesday inaugurated the largest leather and leather products factory in Ethiopia to date with a capital of some USD 27 million.

During the inauguration ceremony of the factory, He Mingliang, general manager of the company, said that about 500 local people would be employed in the factory.

Tadesse Haile, State Minister of Industry, told The Reporter that some 200 local people, of whom many are women, had already got job opportunities.

According to Mingliang, the factory, located in sululta town, 23 km north of Addis Ababa, in the Finfinne Special Zone of the Oromia Regional State, lies on an area exceeding 80,000 sqm (8 hectare) and construction took less than a year. “This project so far has consumed USD 27 million and has the capacity to produce 450 million pieces of processed leather a year,” he said.

Mingliang said that if the laws, policies and conditions were favorable, his company would launch the second phases of the factory that will inject an investment amounting to USD 25 million and has the capacity to use up to 2,500 cow skins a day for finished leather and leather products. The company aims to secure a total revenue of around USD 120 million annually from export sales.

According to Tadesse, the company is expected to manufacture finished leather and leather products, mainly gloves. Such outputs are destined to enter the market by the end of this fiscal year. He said that the company brought state-of-the-art technologies that are new to the local industry. “The new processing machines that we have seen have their own positive impacts on production levels and return.”

The factory not only creates job opportunities to the community but also gives on-the-job trainings. Tadesse expressed his satisfaction with what he saw during his visit to the different processing houses. Though what he saw was positive, he stressed that further trainings are necessary.

The company’s general manager told The Reporter that they had introduced advanced and internationally accepted sewerage treatment facilities and technology “to guarantee the realization of pollution-free disposal of waste materials”. However, Tadesse said that dialogue and discussions will be held in the near future on the issues of waste treatment and drainage systems. He further noted during his site visit that workers safety rules and protection also needed major attention.

China-Africa Overseas Leather Products S.C. is a joint venture company owned by Xinxiang Kudroda, Mingliang Leather Co. Ltd and China-Africa Development Fund (CAD Fund). According to the company, 55 percent of the USD 27 million capital invested was covered by both private companies while the remaining balance is the share of the CAD Fund.
http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=1442:chinese-company-erects-largest-leather-factory&catid=98:news&Itemid=511
 

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Thought I'd start a thread to compile news and other info on manufacturing. Large project announcements can have their own threads I think.
 

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This is an old news item (2009 and 2010) that was not posted here for some reason.

Crystal Tannery
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Article on its establishment (April 2009): http://www.ethiopianreview.com/articles/2394

The under formation Crystal Tannery has bought Caske Spice Extraction Factory from the Commercial Bank of Ethiopia through tender for 14.6 million birr.

A source at the new company told Capital Crystal will install a production complex on the Addis Ababa compound to produce finished leather products to be exported to Europe and other markets.

The compound is over 15,000 metres square and has a production hall resting on a 2,700 metres square plot. It also has six warehouses and office buildings. According to the source, the company is negotiating with the sub city to include another 22,000 metres square piece of land neighbouring the existing compound, which is found in Kality in the eastern part of the capital city.

Crystal Tannery is evaluating machineries to be procured and enter production in the next few months.

"The plan is to start exporting in September this year," the source said. Crystal Tannery obtained a loan for the purchase, which is to be paid off in eight years. It paid 30 per cent of the total up front. Crystal Tannery was founded in March 2008 by seven investors from the leather sector. Crystal will not start production from the first phase of leather production. The input that the factory uses will be semi finished or pickled and wet-blue leather.

Currently, more than 20 tanneries produce semi finished leathers, which Crystal can use as an input.

The tax law that increased the export taxes for semi-processed hides and skins to 150 per cent :nuts:, has decreased the export volume, making the input for Crystal available.

The pre-feasibility study for establishing Crystal has taken more than seven months. The study projected that out of the three phases Crystal applies for its implementation, the first phase costing 30 million birr, will commence after seven months and start producing finished leather for shoes.

At this time, more than 1,500 factories are producing shoes in the country. These factories have a shortage of finished leather inputs, preventing them from operating at full capacity. As a result of the shortage, these factories are importing from Italy. :eek:hno: When the remaining two phases costing 70 million birr launch, Crystal will produce finished leather for garments and gloves.

Ethiopia has a less than one per cent share in the international leather market, valued at 92 billion birr. But it possesses large livestock populations with 40.8 million cattle, 25 million sheep and lambs and 23 million goats.

Article from August 2010: http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=13308:crystal-tannery-enters-footwear-and-fashion-business&catid=12:local-news&Itemid=4

Crystal Tannery Share Company is to expand its current business of finished pieces of leather to the production of actual footwear and other leather goods. In order to do so, it will establish a “Leather Park” at a cost of 15 million dollar to start with.

Crystal’s factory currently turns into finished leather products about 4,500 pieces of skin and 6,000 square feet of hide every day for the export market. They also supply their products to local export oriented producers. Starting from this budget year, Crystal will also add footwear and various leather goods to their production line.

Solomon Getu, the CEO of the tannery, tells Capital that the 15 million dollar expansion is just the first phase. More investment will follow in the years to come.

Crystal will invest about ten million dollar in footwear and other leather goods, he says. In addition, new machineries will be installed to expand its finished leather production. After the expansion, Crystal aims to produce about 5,000 shoes daily.

“Local banks and foreign financial institutions, including the Chinese EXIM (Export and Import) Bank, have agreed to provide loans for the new investment,” Solomon says.

Tomorrow a delegation from the Crystal Tannery will travel to China to attend the Shanghai Leather Trade Fair. The delegation will also meet with Chinese EXIM Bank officials to complete the mentioned loan facility.

To set up the planned Leather Park, the tannery seeks to enlarge its production area. It currently owns 15,000 square meters with a title deed. But an additional 39,000 square meters of land, located within the factory’s compound, is still uncalled.

“We need this plot for the expansion project, which will include the erection of eight warehouses and a two floor office,” Solomon says. The CEO is negotiating with the City Administration to include the plot, which is situated in the Kaliti area in the eastern part of Addis Ababa.

In its expanded business, Crystal will not start its production from the very first phase. Instead it will use semi-finished or pickle and wet-blue leather coming from other tanneries. Crystal will introduce a new technology in Ethiopia: the transfer foil technology, which is the latest technology to produce any sort of finished leather.

Solomon expects Crystal to generate about eleven million dollar during this budget year. Its strategic partner, Crystal Capital Service – that was established after the tannery – is involved in various businesses, including a café and restaurant. It also plans to establish another footwear factory and to form a commercial bank.

“The two companies (the tannery and Crystal Capital Service) are different entities that undertake their own projects, but have shares in each other’s companies,” Solomon explains.

Priority Sector

The leather sector is one of the government priority sectors. It has been one of the fasted growing agricultural industries lately.

The recently launched Growth and Transformation Plan (GTP) aims to further improve income from finished leather exports from a disappointing 56.5 million dollar to 500 million dollar in 2015.

In order to discourage the export of raw material and semi-processed hides and skins export taxes have already been increased to 150 percent in 2008.

Ethiopia has a large livestock population: about 40.8 million cattle, 25 million sheep and lambs and 23 million goats. This makes the country one of Africa’s leading leather producers, but internationally Ethiopia has a share of less than one per cent.

More on the commercial bank here: http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=13272:crystal-tannery-to-open-bank&catid=12:local-news&Itemid=4
 

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sorry about the merging job abesha, it was originally your thread idea...I tried to add a few other projects that might belong in here and it turned into a bit of a mess :doh:

anyway here's some more manufacturing news:

Corrugated Iron Sheet Production Starts in Adama
Factory can produce five types of sheets in different thicknesses



Adama’s first corrugated iron sheet factory, inaugurated on November 6, 2010, is running a test production on five types of sheets which are to become available on the market in a month’s time.

The five types of sheets being produced are normal corrugated, double line, EGA 300 and EGA 500, tile profile, and tile ridge. Established with 40 million Br capital, the factory has five different machines for the production of these sheets.

The machine for the normal corrugated iron sheet has the capacity to produce 12,000 pieces per day while the others can produce 25-metre long sheets per minute, according to Abdulhakim Mohammed, owner of the factory who was born in Adama.

“The machines were mostly imported from China and Thailand,” he told Fortune. “At the end of the first round of production, we will start to supply sheets with a 0.2mm thickness at 95 Br to 100 Br apiece.”

The computerised system can produce sheets ranging from 0.2mm to 0.32mm thickness based on the data input, according to Abdulhakim.

Abdulhakim Investment Group received a 7,000sqm plot of land from the town administration in 2008, on a 40-year lease agreement at 5.5 Br per square metre. The company has completed the construction of another factory, on an adjacent 11,000sqm plot, for the production of raw materials needed for the iron sheet factory.

Addis Fortune
Manufactures Take Bulk of 19.5b Br Investment Capital
The manufacturing sector claimed the biggest projected capital investment of the projects granted investment licences in the first quarter of the 2010/11 fiscal year.

The biggest number of projects, 161 out of the total 481, which received investment licences were in the service sector, while projects in the manufacturing sector were allotted the largest total capital of 7.5 billion Br. The combined capital of all the projects amounts to 19.5 billion Br.

Out of the total licensed projects, 329 are to be carried out with 18.6 billion Br in foreign investment. The remaining 150 projects, with a combined capital of 973 million Br, will be funded domestically.

Coming in second, a total of 101 projects in the agriculture sector with a total capital of 6.7 billion Br obtained licences. Real estate development and construction projects numbering 81 with a total capital of 2.7 billion were also granted licences.

The number and registered capital of projects licensed during the first quarter showed an increase of 22pc and 7.6pc, respectively, in comparison with the same period last year. During that time, 446 projects with a combined capital of 18.8 billion Br were registered.

“This is due to the improvement in the registration and licensing system,” Getahun Negash, Public Relations officer of the Ethiopian Investment Agency (EIA), told Fortune. “We now have a one-stop-shop where it takes only four hours for foreigners to be issued an investment and residence licence as well as duty free letters.”

Addis Fortune
 

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No problem Yosef.

Ethiopia Considers Importing Raw Skins, Hides

Leather Industry Development Institute (LIDI) of Ethiopia calls upon all tanneries in the country to consider importing raw skins and hides of livestock from abroad to cope up with the current shortage, which has led them to produce under their capacity.

In his paper the director of the institute, Wondu Legesse, present at a workshop organized at the Hilton Hotel on Thursday (January 27, 2011), the current shortage of skins and hides will not allow Ethiopia to meet its target of generating 500 million US dollars every year from leather and leather products after five years.

He argued that even though the country is top in Africa in livestock population and 10th in the world, the tanneries in the country, which have a total processing capacity of 50 million skins and hides, are only getting 14 million at the moment.

“…That is why we are now advising tanneries to consider importing raw skins and hides from abroad and urging the government to make easily the importing procedures,” Wondu told newbusinessethiopia.com. He noted that customs clearing and storage system needs to be improved and become fast and efficient to protect the skins and hides from being damaged.

According to the director, one tannery has so far imported skins and hides from Yemen and Malawi. Such measure can fill the demand gap to the tanneries so that they can produce leather and leather products for export market, he noted.

Uncollected skins from regions of the country such as Afar, Gambella Benishangul, Harar Diredawa and Somali are mentioned by the director as among the causes for skins and hides shortage. Wondu further mentioned unutilized hides like camels’ and contraband cattle flow to neighboring countries as another problem casing the shortage.

He also suggested that live animal export should also be shifted to meet export in order to increase raw skins and hides feed to the tanneries.
http://www.newbusinessethiopia.com/index.php?option=com_content&view=article&id=407:ethiopia-considers-importing-raw-skins-hides&catid=35:trade&Itemid=12
 

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^^ Interesting. I never thought i'd see the day Ethiopian tanneries had to import raw hides from abroad to satisfy demand. I'm sure a lot needs to be done to collect hides from across the country
 

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^^ I think it speaks to how disorganized agriculture is in the country. It's downright unacceptable that they have to resort to importing from other countries when hides are thrown around randomly across the country. Ridiculous.
 

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Al-Amoudi’s Horizon Acquires Matador-ATC’s 69pc for $18m

Horizon Plantations Ethiopia Plc, a company owned by Mohammed Ali Al Amoudi, has acquired 69pc of Matador AS’s shares in Addis Tyre SC, Ethiopia’s sole tyre manufacturer, reliable sources disclosed to Fortune.

Horizon succeeded in its latest acquisition two years after the memorandum of understanding (MoU) was first signed, in December 2008. The 31pc the Ethiopian government retains in the company put the share transfer on hold because the Privatisation and Public Enterprises Supervising Agency (PPESA) had first choice to buy the Slovak company out.

The majority shares and complete management of the former Addis Tyre Factory, located in Saris, was first handed over to Matador in a joint venture (JV) arrangement, with Mitsubishi and Yokohama from Japan being minor shareholders, back in April 2004. It was the first JV arrangement the government had entered into, hoping to improve the factory that was established in 1972.

Re-established in January 2004 with recapitalised shares of 76.6 million Br, Addis Tyre was renamed Matador-Addis Tyre Co (ATC), subsequent to the government’s decision to sell 69pc of the shares to East Europe’s largest tyre manufacturer, Matador AS. Matador paid 13.9 million dollars for the shares, after the company’s worth was valued at 21.4 million dollars.

Matador had paid the Ethiopian government 1.5 million dollars in cash and 9.9 million dollars in machinery, while its contribution in knowhow was valued at 2.5 million dollars.

The company has a 20ht rubber plantation in Bebeka, Southern Regional State, from where it obtains one per cent of the raw materials is uses. At the time that Matador took the company over, close to 99pc of the raw materials were imported from South East Asia. The factory has 17pc of the market share of the nearly 900,000 tyres sold in the country annually.

Matador’s new management team has invested in the introduction of the production in radial tyres, and brought various mould designs; they are also credited for diversifying products.

The company made a profit of 42 million Br from its operations last year, according to sources.

Although it has the potential to increase annual production from 200,000 to 550,000 tyres, 51pc of Matador in Slovakia was sold to the Hanover based Continental AG, in November 2007.

The oldest and largest manufacturer and supplier of tyres of major European automobile companies, Continental AG wanted to get out of Matador’s operations in Africa, according to Jemal Ahmed, general manager as well as minority shareholder of Horizon Ethiopia.

“They are no longer interested in the African operation but want to focus in BRIC (Brazil, Russia, India, and China) countries,” Jemal told Fortune.

The negotiations between Al Amoudi and the Hanover firm were concluded last week, after the tycoon paid 17.9 million dollars in cash.

The agreement for acquiring the shares was signed at the Sheraton Addis, Jemal told Fortune.
Horizon has been granted 85,000ht of land in Bench Maji Zone, Southern Regional State, for a rubber plantation.

“This project has a higher value of import substitution, a key objective in the government’s strategic direction,” Jemal said. “It demands huge investment and long-term commitment.”

How much additional investment is required to enhance the capacity of the factory is under study, disclosed Jemal.

However, part of the deal with Continental AG is for them to provide technical assistance for two years in volume and quality of output.

The existing local staff is young and disciplined, a priority set by Horizon Ethiopia for skills development.

“Continental AG will designate resident technical assistants, and has agreed to train our staff both at the factory site and in Hanover,” said Jemal.

The new owners want to increase the company’s market share to 36pc, according to Jemal. It also plans to replace the management with expatriates, in both the technical and managerial departments, although the current management will continue in its role until the replacement is made, Jemal told Fortune.
http://addisfortune.com/Al-Amoudi%E2%80%99s%20Horizon%20Acquires%20Matador-ATC%E2%80%99s%2069pc%20for%20$18m.htm
 

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Italian company to build light fixtures plant here

Italylight, an Italy-based company engaged in the production of various light fixtures, is scheduled to set up an assembly and production plant in Ethiopia, current company general manager Maurizio Muscara told The Reporter. Owned and managed by Muscara family, which runs scores of businesses, Italylight is in the process of securing the license from the respective government offices that allows it to build the assembly plant incorporating a production line for the manufacturing of some of the light fixtures it currently produces in Italy, according to Muscara.

Aside from establishing its subsidiary in Ethiopia, the company has selected the country to become the center for exporting its products to the COMESA region and Middle East markets. To this end, Italylight has already opened branch offices in Kenya and Tanzania that will serve as distribution outlets for the products the plant in Ethiopia will manufacture and export to the said markets, according to the manager.

Italylight will establish the plant in partnership with PGA Tech, a local company engaged in designing, supplying and installing electrical, sanitary, swimming pool, fountain and irrigation systems, among other activities.

“The assembly and production lines we will soon set up in Ethiopia will allow us to reduce the time to deliver our products to the COMESA region and Middle East markets, thereby making us more competitive,” Muscara said. “And this is one of the major reasons we select Ethiopia to become our production base to these markets.”

The assembly and production lines the company will establish in Ethiopia will incorporate a department that controls and certifies the quality of products with respect to the code and standards of ISO 9001–2008, according to the manager.

Italylight’s products include road armor for streets lighting, emergency lamps and lamps for industrial and warehouse use, with many of the products having additional emergency lamp option with illuminating capacity of up to three hours.

The company is currently showcasing its products and service at the 15th Addis Ababa Chamber and Sectoral Association’s International Trade Fair where hundreds of foreign and local companies and organizations are participating.

Established in 2009, Italylight is set to expand its reach to Africa with the motto: New Light in Africa.

It will initially set up a plant leasing available outlets in Addis in a bid to launch operation as soon as possible. Eventually, the company will set up the factory on a plot it is looking forward to acquire here, according to Gabriella.

Italylight has established a plant in Poland in addition to the one it set up in Italy, both serving the European market and destinations overseas.
http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=1831:italian-company-to-build-light-fixtures-plant-here&catid=98:news&Itemid=511
 

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Adama operates most-modern spinning unit in E Africa











February 01, 2011 (Ethiopia)

Adama Spinning Factory, an ISO 2008:9001 certified company and a subsidiary of Adama Development Plc was established in 2006 and started operations in July 2008. It has facilities to manufacture both, open end and ring spun yarn. The factory is located in Oromia, about 100 km from the capital Addis Ababa and is one of the largest spinning facilities in East Africa with a production capacity of 10,000 kgs of cotton yarn per day.

The factory is well equipped with state-of-art technology. Most of the machinery, various mechanical, electrical and electronic equipment has been sourced from renowned and most reliable Switzerland based companies like Rieter and Luwa. The winding machines are from Murata of Japan, equipped with yarn cleaner Uster Quantum-2. In setting up this spinning plant, Adama has created job opportunities for around 250 employees.

The laboratory set up by Adama is also fully equipped with equipment from Mesdan, a highly reputed Italian company, which ensures quality as per customer specification. It maintains quality Uster standards between 5-25 percent. It has facilities to twist cotton yarn as per customer’s specific need and deliver cotton cones packages in between 2-2.5 kg.

The company undertook an immediate expansion program in end-September 2010 to produce combed yarn and also enhance the current yarn production capacity by 35 percent at an investment of 107 million Birr. The expansion project would enable the factory to increase its yarn production capacity to 13,500 tons per day.

A cotton ginnery and edible oil factory is also planned to be established in Adama Town. The factory aims to produce lint cotton, edible oil and cotton seeds for local market as well as for own consumption.



http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=95341

Looks like textile is a big sector these days.
 

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Great news! I hope it becomes a success which leads to future expansions and more jobs. Quick question: is this the factory that's financed by Turkish investors?
 

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Great news! I hope it becomes a success which leads to future expansions and more jobs. Quick question: is this the factory that's financed by Turkish investors?
I think the owners names are Feleke Bekele and his wife Meaza Tereda, according to fortune. Im not sure where they got the financing or anything tho. Their company is Adama Development Plc: Here is a link to the story when the place first opened: http://business.highbeam.com/437660/article-1G1-199715058/cotton-plant-spins-into-action

But I know that there is also a Turkish company called Ayka Textile, it recently moved its operations from Turkey to Ethiopia. Maybe you are thinking of them.
 
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