Fortune News | Jun 15,2019
Bishoftu Automotive Engineering Industry, a wing under the state-owned industrial conglomerate, has completed an expansion of its workshops by investing 173 million Br to double its assembly capacity.
The construction of the new production workshop, which assembles buses, trucks and light truck cabins, took two years to complete. Poly Technology, a Chinese company, engaged with the structural work and supply of the machinery.
The bus and cabin workshops rest on 9,504Sqm and 47,52Sqm of land, respectively. The workshop is expected to be operational after three months, while the cabin workshop has already started pilot production.
The company has a production capacity of assembling eight buses a day. However, it is currently producing two buses a day in two shifts. Once the new plant is completed, it is expected to double the installed capacity of the company and create jobs for 500 people.
Currently, the company has 2,777 employees and a production capacity of 5,000 vehicles a year, excluding military vehicles. It assembles different types of buses, light and heavy-duty trucks, military vehicles, forklifts, telescopes, motorcycles and bicycles.
“We're manufacturing 10pc of the parts for the buses locally,” said Bahiru Daba, marketing manager of Bishoftu Automotive. “Our goal is to raise this to 60pc within six years.”
Bishoftu Automotive, which specialises in designing and manufacturing automotive products and different types of machinery, started assembling vehicles in June 2011, by importing the parts from China and Europe. The plant is located inside the premises of Metals & Engineering Corporation (MetEC) headquarters in Bishoftu (Debrezeit), 40Km from the capital.
First established in 1984, Bishoftu Automotive was operating under the Ministry of Defence, it was then re-established in 2010 as a public enterprise under MetEC to play a leading role in assembling both military and commercial vehicles. It assembled buses for Anbessa City Bus Service Enterprise, the Public Service Employees Transport Service Enterprise, and the Sheger Express Bus System.
Fekadu Gurmessa (PhD), a transport geographer and associate professor at Addis Abeba University, supports the idea of assembling vehicles locally.
"We cannot afford to import complete built unit (CBU) vehicles,” said Fekadu. “Assembling complete knocked down units (CKD) should be encouraged.”
Eshetie Berhan (PhD), an associate professor at Addis Abeba University's Institution of Technology Department of Mechanical & Industrial Engineering, recommends the company to gradually jump into the manufacturing of consumable spare parts too.
“When transferring gradually from assembling to manufacturing," said Eshetie, "the company should also consider the durability of the vehicles."
Bishoftu Automotive, which has about 29 maintenance centres operating as exclusive maintenance centres, is highly criticised for delivering poor quality products.
As a result of a single day trial, out of the 396 buses assigned daily for public transportation in Addis Abeba, 97 buses needed repairs, of which 86 buses were assembled at Bishoftu Automotive, according to a report released last year by the Urban Development & Environmental Protection Affairs Standing Committee of the Addis Abeba City Council.
The company is among the 15 companies operating under MetEC, mainly engaging in the engineering sector. These companies consolidate a total of 98 state-owned enterprises employing a total of 19,500 workers including the military base.
However, last week the Council of Ministries approved a regulation that split four of the military industries from MetEC and consolidated them under the Ministry of Defence. It makes the company purely focus on commercial activities.
The Corporation has also laid off over half of its employees over the past year and a half after it lost almost all of the mega projects it was contracted to including the construction of the Great Ethiopian Renaissance Dam (GERD), Yayu Fertiliser Factory and the sugar factories. Most of its former executives, including the former CEO Kinfe Dagnew (Gen.), were sent to jail charged with corruption crimes.
The new cabin workshop has already started pilot production.
PUBLISHED ON Jan 25,2020 [ VOL 20 , NO 1030]
Fortune News | Jun 15,2019
Featured | Apr 26,2019
View From Arada | Jul 27,2019
Fortune News | May 29,2021
Radar | Oct 02,2021
Fortune News | Aug 17,2019
Fortune News | Apr 30,2021
Radar | Mar 20,2021
Radar | Mar 16,2019
Radar | Jun 19,2021
August 28 , 2021 . By HAWI DADHI
The streets of Addis Abeba are as varied as they are many, although too many of them have yet to be named. From the narrow alleyways of the...
August 7 , 2021
There are a few without an opinion on Ethiopia’s federal structure, which is arranged along lingo-cultu...
July 24 , 2021
There was an alarming increase in the price of Teffin August 2017. It suddenly skyrocketed from 2,000 Br...
June 26 , 2021 . By HAWI DADHI and SAMUEL BOGALE
This past Monday was the second time Belay Zerihun, a second-time voter, has had to stand in a long queue...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
October 9 , 2021
Public offices have been having a field day in the past few years. From the Prime Min...
October 2 , 2021
Ethiopia`s Parliament will pick up a Prime Minister on Monday, October 4, 2021. The i...
September 26 , 2021
There are two editions of The Economist on Africa influenced by the narrative on the...
September 18 , 2021
It could be customary to wish well for the holiday seasons. If only the New Year cele...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
Ethiopia is experiencing a nationwide social crisis unlike any other the young genera...
We have all heard it said, “looks can be deceiving,” which is often used to refer to something that seems good on the outside but does n...
Or see contact page