China-Africa: Chinese Factory to produce gloves, footwear in Ethiopia
Chinese Factory to produce gloves, footwear in Ethiopia
By Muluken Yewondwossen
A Chinese company has signed an agreement with the Oromia Investment Commission of Ethiopia to build four leather goods factories in Sululta, around the Weserbi area, 20 km north of Addis Ababa, at a cost of 312 million birr.
Mohamed Ibrahim, vice commissioner of the Regional Investment Commission, told Capital that 5 hectares of land have been granted to Sino Africa Overseas Leather Products plc, where it will build the four factories.
“Sino Africa has plans to complete construction within three years and work will start in November 2008. During the first phase; that will be a year later, the factory would be able to produce more than three million pieces of finished leather annually,” said Mohamed.
The factory that will start production after the tannery is completed will have the capacity to produce one million pairs of gloves annually and the third factory will produce two million pairs of shoes. The leather garment factory will sew 200 thousand jackets annually. The factory will create 1300 job opportunities.
Sino Africa Overseas Leather Products is producing leather products in China and has imported processed leather inputs like pickled wet blue from Ethiopia.
According to the vice commissioner, currently many companies who want to be engaged in the leather sector are coming to the region. The interest is due to the high potential in the country.
Mohamed said another reason for investor interests is the proximity of the country to export markets in Asia, Europe and other African countries.
According to the Ethiopian Investment Agency, currently, 160 tanning, footwear and other leather goods producers have obtained licences from the Agency.
In addition to these, 6 tanners, 7 footwear and 9 leather goods factories are under construction
(Capital)