Belayab Motors PLC, one of Ethiopia’s leading vehicle assembly companies, has announced that it has signed a local assembly partnership agreement with KIA Motors Corporation (KMC), world’s fastest-growing car manufacturing company.
During the signing ceremony held at Golden Tulip Hotel, the guest of honor H.E. Dr. Alemu Sime, Deputy State Minister of Industry, expressed his happiness in witnessing such a partnership. He said “this kind of partnership improves the domestic vehicle assembly companies by facilitating the transfer of global knowledge and experience.”
Speaking at the agreement signing ceremony, Mr. Fekadu Girma, General Manager of Belayab Motors, said that we are pleased to partner with Kia Motors. He added, “Our company has been in the forefront building the automotive industry in Ethiopia since 2006. This agreement with Kia Motors is a testament to our unwavering efforts towards accelerating the growth of the local manufacturing industry.” Mr. Fekadu noted that Belayab’s commitment is evident to the success of the Ethiopia’s Growth and Transformation Plan (GTPII) by intensifying its investment and facilitate foreign direct investment (FDI) through its alliance with KIA Motors. “This potentially adds value to the Ethiopian Economy at a macro and micro level” says the Manager.
The General Manager also duly acknowledged the great effort exerted by Mr. Aschalew Belay, the major shareholder of Belayab Motors, for his role in promoting the business venture from its conception to realization. Mr. Fekadu noted that Mr. Aschalew’s close involvement in the process was critical for the inking of the partnership between Kia and Belayab, and also that the Owner has promised to render all support needed to make the venture a great success.
The agreement will bring the global automotive brand to Ethiopia as the first car assembly plant in East Africa for Kia. Mr. Soonnam Lee, Kia Motor’s President of Middle East & Africa Regional Headquarters explained that Kia’s business partnership with Belayab will allow the company to expand production capacity to meet growing global demand. As one of the most youthful and exciting brands in the world today, Kia offers some of the best-looking, high quality vehicles to its customers and we are excited to bring our products to Ethiopia with this partnership. Kia Motors’ agreement with Belayab is also partnership based on mutual understanding on the need for capacity building and knowledge transferring endeavors”.
Belayab’s investment as a result of this agreement is close to 150 million ETB. The assembly facility will have the capacity to assemble 12 cars per day in a single shift; 240 cars per month. It is estimated that a total of 3000 KIA vehicles will be assembled each year. The 30,000 m2 assembly plant located in Adama expects to add 100 more employees who recently graduated from the technical college. The first Kia vehicle assembly is expected to be completed in January 2017.
About the companies:
Belayab Motors PLC: - Belayab Motors has a well-established maintenance workshops located in Addis Ababa - Saris, Nefas Silk, Lafto Sub City, Akaki and the assembly plant in Adama. Additional workshops in Awassa and Bahir Dar are under process as well. The workshops have the capacity toprovide a range of technical services with state of the art equipment and qualified and experienced staff.
Belayab has the mission to supply high quality, cost effective, and affordable latest technology products of motors and motor driven vehicles including construction machinery equipment. It engages in mutually rewarding on going collaboration with relevant educational institution, companies, government and non-government institution on information, technology, innovation, research and studies to foster the national development of the manufacturing sector.
Kia Motors Corporation: - Guided by the brand slogan, ‘The Power to Surprise’, Kia Motors Corporation (KMC) is dedicated to providing products and services that exceed expectations in every way. Since 2008, Kia Motors has consistently been one of the world’s fastest-growing car manufacturers. Kia is focused on sustainable global growth, which will be achieved through a consistent stream of new and refreshed models and increased investment into R&D. A range of new eco-friendly products – and future investment in environmentally-responsible technologies – will help Kia continue to play an active role in shaping the future of mobility. Kia’s global production capacity stands at 3.08 million units per year. The total value of Kia brand has grown by 224% since 2010, rising from USD 1.5 billion to USD 5.7 billion.
Source: Press Release Sent to 2Merkato.com by 251 Communications
Note: The pictures inside the article are taken by the photographers of Hybrid Designs PLCand they have full right to use them in anyway.
