A Middle East based textile company, Velocity Apparel PLC, is set to establish an integrated garment factory in Mekele city. The factory is said to cost US$ 80 Million.

According to Fortune, Development Bank of Ethiopia (DBE) has extended a quarter of the establishment cost as loan to Velocity. Two weeks ago the company has secured the loan from DBE.
Director General of the Ethiopian Textile Industry Development (ETID), Sileshi Lemma, said the loan from the DBE was extended after Velocity brought necessary documents, including 90 percent equity from the total investment cost of the first phase.

The construction of the factory will be done in three phases. The first phase of the project is estimated to cost Velocity US$30 Million and be finalized in a one year time.

Taddese Haile, State Minister at the Ministry of Industry (MoI), noted Velocity will start construction of the factory within a few months on a 100 Hectare lot it took in Mekelle.

It was only last week delegates of Velocity had talks with the Ethiopian government officials from the MoI and the Ethiopian Textile Industry Development (ETID).

Velocity has requested a bonded warehouse customs duty service when it commences production.
The Middle East textile factory has plants in Egypt, the United Arab Emirates and Jordan. It was established in 1990 and had a turnover of US$ 100 Million in 2013. When the plant goes operational it set to export most of all it’s products.

Source: Fortune