Ethiopian Business Review

Chinese Manufacturer to Expand Investment Portfolio to USD980m

By Ermias Mulugeta

Chinese textile products manufacturer, Sunshine Ethiopia Wool Manufacturing Company, is set to increase its investment portfolio in Ethiopia to USD980 million.
The Chinese textile firm, which has been active in the premises of the Adama Industrial Park since 2016 with a registered investment capital of 350 million US dollar, disclosed its plan to further increase its investment capital in Ethiopia in two phases.

This would raise the amount of good exported by the company by five folds to USD50 million, according to Chen Min, General Manager of the textile Factory.
The General Manager, however, voiced his concern over the recurrent electric power interruption as a major bottleneck, affecting the company’s production plans.
“The ongoing frequent electric power interruption has led the factory to a greater performance uncertainty in its ambition to expand its business,” said Chen, who had encountered total since last Wednesday, eventually halting operations inside the plant. “Such power issues are hampering the factory’s production capacity, and hundreds of employees are stranded inside the factory awaiting the return of light every day.”

Additionally, investors also expressed their concern over the delay of the waste-water treatment plant at the Adama Industrial Park. This has exposed investors to unnecessary financial expenses.

“It poses another challenge to our factory because we can’t afford trucks to transport 260tns of industrial waste every day or take out waste from the factory,” Chen said.

The textile firm, under normal circumstances, has an annual production capacity of 10 million metrics of wool fabrics.

 The Adama industrial park was built by China Civil Engineering Construction Corporation (CCECC) and was inaugurated back in October last year by the Ethiopian Prime Minister Abiy Ahmed, as well as various other high-profile Ethiopian government officials and partners.

Leave a comment

Make sure you enter the (*) required information where indicated.Basic HTML code is allowed.