Turkish giant to establish a factory with an outlay of USD 175 mln The Ethiopian Textile Industry Development Institute disclosed Thursday that it has enjoyed an encouraging response from the export performance of the textile sector after amassing USD 75.28 million in the first eight months of the fiscal year from the international market.
According to the institute, this year's export performance surged by USD 9.9 million (15.1 percent) from the same reported period of the previous year. The Director of Corporate Communication Directorate of the Institute, Banteyihun Gessesse, told The Reporter that this year's achievement for the growth in export performance is mainly attributed to the volume and quality of the products of the textile-manufacturing sector.
According to Banteyihun, most of the products that were sent to the international market have been particularly destined to Europe, US, Asia and Africa.
Among several local and foreign-owned companies engaged in the production of textile, the Turkish textile giant, Ayka Addis, was mentioned for taking the lion's share of the already earned 75.28 million dollars of exported products.
The export components of these textile products that were sent to the international markets consist of untailored garments, spine and woven, tailored garments and woven products. In a similar development, another Turkish giant textile manufacturer, Akber, is undertaking preparation activities to establish the biggest textile plant with a total initial capital amounting to USD 175 million in the Ejere town of the North Shoa Zone, Oromia Regional State.
According to the institute, the company has already secured a 13.5 hectare plot of land where the factory will be built.
The new factory is also expected to create from 9,000 to 10,000 jobs, which is larger than any operating textile factory in the nation. So far the highest has been Ayka Addis that has been offering around 7,000 jobs.
It was also said that Akbar would take two to three years to complete the building of the plant.
Upon completing the construction of the plant and becoming operational, the company expects to make its annual production capacity worth USD 90 million.
It was further learnt that the company is currently undertaking a project study and designing that will enable it to secure loans from the Development Bank of Ethiopia (DBE).
"The coming of such big companies to Ethiopia signals a glimmer of hope in the country's textile sector," Banteyihun told The Reporter.
He added that this success of attracting foreign companies would bring more bright futures for the textile sector in particular, and for the manufacturing sector at large.