CLC Industries Plc will harvest cotton from the first 2,500 hectares in Ethiopia next month. The Indian company will use the cotton as raw material for the textile spinning plant it is establishing in Kombolcha.
The construction of the textile company at an investment of 70 million dollars will begin this month according to Markos Terfa company liaison officer.
CLC uses hybrid cotton seeds from India that matures within five to six months of planting. It aims to produce large quantities of cotton by using modern technology and machines imported from India.CLC Industries aims to export two containers of cotton daily to start of with. It also plans to supply local textile companies with an estimated 1200 metric tones of lint cotton as of next month.
A Memorandum of Understanding has already been signed with Ayka Addis, Turkish owned, and Kombolcha textile factories to supply cotton said Markos.
The factory is expected to employ 1,200 workers to start of with and will employ 3,000 when it is fully operational according to Markos. CLC will plant spindles in the beginning he explained.
The purchase of the required machinery was facilitated through a loan from the Development Bank of Ethiopia.
CLC will begin using cotton harvested from its own farms from 2013 onwards
CLC Industries are part of CLC Spintex, an Indian Company established in 1946. The company chose Ethiopia as its first destination of investment in Africa because of the nation’s stability, beneficial investment policies such as the five year tax exemption and advantageous investment climate according to Markos.
Source Capital
