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Ethiopia to Establish Chemical Corporation

Ethiopia is to establish a chemical corporation to handle state owned chemical related industries in the future. The new corporation will be under the auspices of the Ministry of Industry and will be a part of the complex fertilizer project.

The fertilizer complex will be under the control of the chemical corporation expected to be set up by the end of the current fiscal year according to Tadesse Haile, State Minister of Industry.

Appropriate studies have been conducted for the establishment of the new corporation and it is expected that its formation will be ratified by the government soon said Tadesse.

The Yayu fertilizer project will be managed according to a deal to be signed between the Ministry of Industry and the Ethiopian Metal and Engineering Corporation and the new corporation will handle the other projects and commissioning in the future he explained addressing the disagreement that had arisen between MetEC and the Privatization and Public Enterprises Supervising Agency on the management of the Yayu project.

The 1 billion birr fertilizer complex is a significant investment that will require an independent body to oversee according to experts. The project had been handled by the Coal Phosphate Fertilizer Complex Project renamed the Fertilizer Complex Project.  

The design work for the project was undertaken by MetEC after feasibility studies were conducted by the FCP office in partnership with Chinese companies, including the China National Complete Plant Import and Export Corporation, over a period of ten years.

It is to be remembered that the 12 million birr study conducted by COMPLANT  revealed that an estimated 100 million tons of coal to located in the Yayu area. It is expected that fertilizer factory with the potential to produce 1.5 million tons of Urea and Dap annually will reduce fertilizer imports.

Source: Capital