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The first workshop designed to enhance cooperation between Ethiopia and India to bolster cooperation in enhancing the product, design and quality of the leather sector in Ethiopia was held this week.

Ethiopia has the largest resource of livestock in Africa which can serve as a reliable source of raw materials for the leather sector said the representative of Tadesse Haile, State Minister for Industry.

The country is not getting as much benefits from the sector in terms of exports and employment creation because of a range of challenges including lack of know how, technological deficiency, and limited market access said the Minister through his representative.

Ethiopia expects to inaugurate the first industrial zone under management by the Industry Zone and Environmental Protection Agency in the coming September.

The Bole Lemi Industry Zone located on 156 hectares is planned to be completed in time for the Ethiopian New Year and will be opened to domestic and international developers said Melaku Taye, Head of Public Relations with the Ministry of Industry.

The MoI has also received more land from the Addis Ababa City Government and from regional states to develop and manage other industrial zones he said.

Ethiopia is drafting a new regulation to control the raw hide and skins market according to the Ministry of Industry.

The new regulation will aim to create harmony between the market chain and the circulation of raw hides and skins to solve challenges created by speculation and consequent increases in price that is affecting the flow between tanneries and suppliers.

The regulation being drafted by the MoI in collaboration with other stakeholders in the sector such as the Leather Industry Development Institute is expected to be submitted to the House of People’s Representatives by the end of the current financial year.

The Saygin Group subsidiary in Ethiopia is set to generate as much as 100 million US dollars per annum from textile manufacturing according to the Turkish company.

Saygin Dima Textile SC, which launched operations at its Ethiopian factory just three months ago, is looking to manufacture 50 thousand meters of fabric a day for international export said Ahmed Turan Yangin, General Manager.

The company is set to take advantage of low power costs estimated at  a third of what they would be in Turkey and wages one 20th those of the home market said Yangin.

Workers earn 600 Ethiopian birr or 34 US dollars a month for a 48 work hour said Yangin who feels that the low production costs are the most important incentive for a textile investor to choose Ethiopia.

Horizon Addis, the only tire manufacturer in Ethiopia, is set to invest 1.1 billion birr on an expansion project. Horizon is in the process of negotiations with one of the top tire manufacturers in the world, Continental Germany, to exchange its antiquated machinery for the latest equipment.

One of the new machines that Horizon is planning to install is a 30 million birr machine that can produce 80,000 pieces of light truck radial tire every year. It is expected that the new machine will begin production in the coming September allowing Horizon to supply higher quality truck and bus tires.

It is expected that the expansion program will be completed in 18 months according to Belay Dechasa, General Manager of Horizon.