A Chinese company is set to build a wood processing plant in Debre Tabor town, 324Km from the capital, with an investment of five million dollars.

Wu Ke Song Wood Products will process plywood and chipboard, sheet lumber made from real wood and resins that are heat pressed into flat usable sheets. It will have a capacity of processing 2,000Sqm of wood a day and is expected to supply value-added products to the local and international market.

For the construction of the plant, the company signed a 70-year land lease agreement with Debre Tabor City Administration two weeks ago. The plant will process wood products, mainly plywood and chipboard, from raw material that will be sourced locally.

The company leased the 30,000Sqm plot of land for 54.45 Br a square metre and paid half of the value up front, according to Chen Shuren, one of the four owners of the company, which is expected to create 150 to 200 jobs.

The construction of the plant will be started as soon as a contractor is hired, according to Chen, who has already contracted architects from the City Administration to work on the design of the plant.

The company intends to import machines from China after finishing the construction of the plant. The owners also plan to commence operations within the completion of the construction of the plant.

"There are not many investments in Debre Tabor, so this project will encourage businesses to invest in the area," according to Agmasie Gebeyehu, industry and investment office leader at Debre Tabor City Administration.

Wu Ke Song Wood Products will be the second large-scale investment in the area next to Abay Industrial Development S.C., a public-private firm established with four billion Birr in capital raised from close to 400 founding shareholders that is also constructing a timber processing plant in Debre Tabor.