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.
The company will have the potential capacity to produce 200 thousand pieces of truck and bus tires by the end of the expansion project substituting imports, reducing cost, ensuring prompt delivery and offering a fully warranty against manufacturing defects explained Umesh Davera, Commercial Director with Horizon.Horizon imports the raw materials for tire production including natural rubber and petroleum by products and adds an estimated 40% in value through its manufacturing processes in country.
It is to be remembered that Horizon took over 61% share of the tire manufacturing company from Slovak Matador in 2011.
The remaining 39% of the company remained in the hands of the Ethiopian government as part of the initial public-private privatization scheme that had put the company in the hands of Matador in 2004.
Horizon Plantation is owned by Ethiopian born Saudi billionaire Sheik Mohammed Hussein Ali Almoudi.
Source: Capital
