The Ethiopian Agro Industry Company, K & S Plc, signed a contract with the German owned Agro Industry Private Limited Company, Acazis Agro Industry, to launch an oil company for 8 million US dollars.
The raw material that is needed for the production of oil is intended to be produced on 6,000 hectares of land in the East and West Hararghe zones, Oromia region. The new partnership expects to produce 25,000 tons of ground nuts every year on the 6,000 hectares of ground to serve as raw material for the factory according to Francois Achour General Manager of Acazis Agro Industry plc.
The ground nuts can also be used by local industries. But it was also mentioned that there is a long term plan to export to China and India. But its initial focus is on local market of Ethiopia and the exports are a long term plan when the production capacity grows.
The agreement is to share the profit 50/50 percent between the two. Now it is waiting for a work permission from pertinent authorities to start production. The factor's products are to be edible oil and a byproduct of cake, which used as animal feed. When the production starts they expect to produce 50,000 liters edible oil and 60 tons of animal feed daily with an estimated income of 3 million birr every day.Acazis is owned by Rosenheim, which is in Germany and yet it is fully functional now in Ethiopia. The agreement is to work on an oil factory around Fechatu area of Eastern Ethiopia.
Source: Capital
