Awassa Textile S.C. is to start expansion project with 168 million Birr loan agreement it has concluded with the Development Bank of Ethiopia (DBE) on April 17, 2015, according to Addis Fortune.

Awassa Textile was founded in 1989 in Hawassa under state ownership. Nonetheless, in 2011 the ownership was transferred to Dukem Textile Plc. with the cost of 37 million Birr. The company produces bed sheets and foam mattress covers, school uniforms, workers’ uniforms and threads.

Among the company’s products, only semi-finished thread is exported primarily to Kenya, said Eyasu Atnafu, general manager of Awassa Textile S.C. Yet, this expansion project will help the company to increase its export items, he added.

Currently, the company produces four tons of textiles per day and secures 15 million Birr monthly.

The production capacity of the company is expected to double and reach eight tons a day upon the completion of the expansion project, said Eyasu. Hence, the factory’s revenue is also expected to increase to 45 million Birr per month via the expansion of its export destination to Europe and the United States markets.

Awassa Textile has earned a meager USD 26,000 from exports in the third quarter of this budget year. The company plans to boost its export capacity by availing 20 - 30 percent of its total production to the international market, added Eyasu.

Source: Addis Fortune