Manufacturers from China, India, Turkey and other nations are racing with each other in Debre Birhan town, North Shoa Zone, Amhara Regional State to install multi-million dollar factories with a view to selling their finished products locally and abroad, including the US and European markets.
Similarly, despite the prevailing mood due to the State of Emergency (SoE) decree, which was declared five months ago, the Ethiopian Investment Commission (EIC) said on Wednesday that the six-month performance of foreign direct investment (FDI) stood at USD 1.2 billion.
Among the major companies currently in early stages of building factories and those whose sites are nearing completion include Chinese, Indian as well as Turkish businesses. Among the Chinese-owned sites is a steel casting project, by Sino Steel PLC, and another one by Humanwell Pharmaceutical Group. Meanwhile, the giant Turkish shoemaker, My Shoe and Leather Manufacturing PLC., is one of the foreign companies that are currently building factories in Debre Birhan.
Sino Steel PLC Ethiopia is owned jointly by Jiangsu New International Trade Co. Ltd. (JNT), which owns the lion’s share (97 percent) and Jiangsu Hengde Real Estate Co. Ltd (JHRE). The joint company is currently building the factory along with a workshop in Tulefa Kebele, in Debre Birhan with a USD 42.4 million capital on 125,000sqm plot of land.
According to officials of Sino Steel PLC Ethiopia, when the plant is completed, it will produce 400,000 metric tons of rebar. Company reports show that it will be completed by June this year, whereas the first phase is expected to be operational with stated annual output (rebar and wire rod). Meanwhile, the second phase of production is planned to begin by June 2017 producing angle iron and U-Channel of various specifications.
“Since there is a comparative advantage that the project is equipped with advanced plant and high quality raw billet while many other African manufacturers are currently applying with second hand plant and steel scraps, Sino Steel PLC plans to export its products in the coming few years,” a company representative told journalist who were visiting the plant under construction near Sheno town, 60 km North East of Addis Ababa.
The other company from China – a pharmaceutical company – is also constructing its plant in Sheno, as well.
Read more at http://www.thereporterethiopia.com/content/manufacturers-seek-local-foreign-markets