2merkato

Eight new textile projects and expansion programs are expected to become operational in Ethiopia this fiscal year. The projects are scheduled for completion with a combined investment of over 4.4 billion birr.

Five of the projects underway are being newly constructed at a total estimated cost of 3.4 billion birr and are expected to employ 3000 people.

The remaining three projects are initiatives to expand existing plants at a total cost of more than a billion birr to offer employment for a further 1800 people.

British engine manufacturer Ricardo is to partner with Chinese car-maker Lifan in Ethiopia. Engineers from two companies have collaborated in producing a VVTI engine for the new Sport Utility Vehicle, Lifan X-60, produced by Lifan for the Ethiopian market. 

The agreement to design and develop an engine for the Lifan X-60’s was reached after months of negotiations between Ricardo and Lifan.

The Tendaho Sugar factory, Ethiopia is expected to be operational in October of 2012 according to Endalkachew Zenebe Deputy General Manager for the Project.

The factory is being constructed by Overseas Infrastructure Alliance Private Limited, an Indian company which won the construction bid for 345 million US dollars. Disagreements between OIA and some of its sub-contractors have allegedly contributed to delays encountered with the project according to sources. 

Kaliti Metal Products Factory, Ethiopia is set on an expansion project estimated to cost 60 million birr. The factory has been challenged to meet demand because of outdated machinery according to Kassa Assefa, Market Research and Advertising Senior Expert with Kaliti. 

The expansion project was originally designed to be a two phase project costing 138 million birr and encompassing pipeline supplies but was scaled down to only make a smaller pipeline and the manufacture of EGA sheets for roofs and the purchase of one roofing crane.

Ethiopia has earned 137.7 million US dollars from the export of manufactured goods in the last six months according to the Ethiopian Ministry of Industry.

The income was earned through the export of leather and leather products, agro processing, textile and garment, and chemical and pharmaceutical products according to Melaku Taye Corporate Communication Director, with the MoI.