Awassa Textile and Industrial Park S.C, a local company established by three Ethiopian investors, is going to build a privately-owned industry park in Hawassa town at a cost of two billion birr.
Awassa Textile and Industrial Park S.C. was established three years ago by three Ethiopian entrepreneurs –Tamrat Demena, Alamin Mohammed and Ahmed Abderuf— with a registered capital of 600 million birr. The company acquired the state-owned Awassa Textile Factory through privatization in 2017.
The Awassa Textile Factory, which was established in 1989 by the Ethiopian government, was ailing for many years. The factory was known for the production of bed sheets, foam mattress covers, school uniforms, workers’ uniforms and fabric threads.
The former Privatisation Agency had handed it over to foreign and local investors at different occasions. But, none of them brought about the much desired change and resurrect the old factory. The investors could not turn around the factory and put it on the right track to success.
In fact, the textile factory was highly indebted to the Development Bank of Ethiopia (DBE) and ceased operation for a long time. The factory was languishing with mountains of debt that brought it down to a standstill.
After going through many ups and downs, the new investors managed to replace the aging machineries and brought the factory back to life. The factory which has 1,200 employees on its pay roll is now manufacturing fabric threads.
The Awassa Textile Factory lies on a vast land measuring 350,000 sq. m. Awassa Textile and Industrial Park S.C. is now under preparation to develop a garment industry park on unutilized land that belonged to the factory at an investment cost of two billion birr, it was learnt.
Representative of Awassa Textile and Industrial Park S.C. Zelalem Kurabachew told The Reporter that the company will build 14 shades in the coming twelve months. Zelalem also said the company would invest two billion birr on the new garment industrial park. “Leading global garment companies will join the industrial park,” Zelalem said. “Popular garment brands will be manufactured here,” he added. The new industrial park is projected to create 35,000 job opportunities to the local community.
Awassa Textile and Industrial Park S.C. will lay the corner stone for the construction of the industry park on August 6. Senior federal and regional government officials will attend the ground breaking ceremony.
TheReporterEthiopia