Rose Mestika
13 August 2008
Addis Ababa — Sino-oversee Leather Products PLC, a Chinese company yesterday signed an agreement with the Oromia regional state Investment Commission enabling it take 50,000m2 of land from the region and plant four leather product factories.
The factories are set be planted around Sululta town with the total capital of 312 million Birr.
One of the factories to be built by the company would be a tannery with the capacity of producing 3 million pieces or 12 million sq. feet finished leather annually whereas the second one will be a glove factory with a capacity of producing one million pairs of leather gloves annually. The third one will be a Shoe factory with the capacity of producing 2 million pairs of leather shoes per year and the last one is a leather garment factory. It has the capacity of producing 200,000 pieces of leather jackets per year, according to the agreement.
Xu Jian Liang, the representative of the company who signed the agreement with the Oromia region's investment commission commissioner, said the construction of the tannery will begin in the coming eight months and the other factories construction will be over and done within three months.
The establishments of the factories are expected to create job opportunities for 1300 employees, the officials at the signing ceremony at the Oromia region's investment commission office said.
The total payment for the lease period granted from the commission for 80 years would be Birr 14,000,000 the first payment of which would be Birr 2,100,000, the representative said adding that the remaining payment would be carried out within 40 years.
The representative said the factories would all be environment friendly for latest technology of the company would be applied in its commitment to protect the area from pollution.
The Oromia Investment Commission Commissioner Alemu Simi on his part said his office will give a due attention to wastage disposal. "It is also included on the agreement and there is responsible body who checks the company whether it is working with the agreement or not", he said.
The Sino-oversee Leather Products PLC is the sister company of Xinxiang Kuroda Mingliang leather Co Ltd.
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