The Turkish firm, Saygin, bought out Saygin Dima Textile Factory S.C. from the Ethiopian government after paying 10 percent of government owned shares in the factory.

It was back in 2009 Privatization & Public Enterprises Supervising Agency (PPESA) established the factory in a joint venture with Turkish business tycoons. During establishment factory’s capital was U.S. $ 78.5 Million.

According to Fortune, when the company was established the Ethiopian government owned 60 percent of the firm while the remaining 40 percent was under the ownership of the Turkish company Saygin.

Now Saygin bought out PPESA following a request by the earlier submitted in April 2014. The request was for full ownership of the factory which the Agency accepted the proposal. The Agency’s decision latter had the blessing of the Prime Minister’s Office in June 2014.

According to the Newspaper, a condition attached to the transfer of government owned shares is that a 10 percent down payment will first be made and the remaining fund will be paid over in the next five years.

Following the agreement, Saygin paid the 10 percent down payment, 626.36 Million Birr, said Wondafrash Assefa, Public Relations Officer at PPESA.

Fatih Mahmet Yangin, General Manager of Saygin Dima, on his part commented, “we are in the legal process of transferring the company to private investor ownership”.

Saygin Dima has an installed capacity of 30 Tons of yarn, 40,000 Meter fiber and 50,000 Meter finished fiber daily. Nonetheless, the factory is currently operating only 30 percent of its capacity.

Back in its establishment days, the factory had requirements of exporting at least 45 to 50 percent of its products.

Source: Fortune