cbe noor
OPEN FOR AD
FORTUNE+ VIDEO JOBS SPONSORED CONTENTS FORTUNE AUDIO TRADE AFRICA new

Fortune Logo

Chinese Plastic Maker Expands with 14m Br

January 5 , 2020
By TEMESGEN MULUGETA ( FORTUNE STAFF WRITER )

Zhaoxin Wang, a Chinese-owned plastics factory, completed an expansion project to produce plastic pipes that are used for fluid and gas transfer and often used to replace ageing concrete or steel main pipelines.

Located in the Eastern Industrial Zone in Dukem, some 40Km west of the capital, the expansion took two and a half months to complete and consumed 14 million Br of investment.

The final installation of the machinery was done in early December, and the company started production three weeks ago. The company produces different sizes of high-density polyethene pipes, plastic pipes that are mainly used for water supply.

Resting on 3,000sqm of land, the new plant that has a capacity of producing 700Kg of high-density polyethene pipe an hour is currently producing 600Kg of the plastic pipes an hour with machinery imported from China.


Shanghai Jwell Machinery Co. Ltd, one of plastic extrusion machinery manufacturers in China with over 20 years of experience in the field, has produced and installed the machinery.

Governmental institutions, non-governmental organisations and private contractors who are engaged in waterworks are the potential customers of the company, according to Surafel Kassahun, a salesperson at Zhaoxin Wang.


Initially, the plant created job opportunities for 25 people, but after it starts production at full capacity the number will double, according to Surafel.

The existing plant, which was built at a cost of 28 million Br, became operational in April 2019 and produces pipes for low pressure uses. Currently, the company has 180 employees.


Another wing of Zhaoxin Wang, which is located next to the plastic plant at the Eastern Industrial Zone in Dukem has been engaged in chip wood board and laminated chip wood production for the past four years.

The Ethiopian Plastic & Rubber Association welcomes the project by stating that it will substitute for imported plastic pipes.

The government has to play a vital role by incentivising local manufacturers to produce more, according to Tewelde G. Michel, president of the Association, which has 250 companies as members, of which 15 are giant firms.

"The government should ensure that local manufacturers are able to secure forex rather than giving it to importers with the aim of substituting imported products," he added.


A marketing expert applauds the expansion project for the job opportunities it created and for replacing imported products.

To motivate local producers, the government should give them the priority to access forex, according to Hailemariam Kebede (PhD), a lecturer at Addis Abeba University's School of Commerce.

"This will also lessen the burden on forex," Hailemariam said. "The company should also address the high demand for the product."

The first Ethiopian plastic factory was established in 1960 by a group of five entrepreneurs. In 1973 the military government nationalised 55pc of the company, leaving the remaining 45pc to the original owners.


PUBLISHED ON Jan 05,2020 [ VOL 20 , NO 1028]

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.



Related Posts

Put your comments here


Editors' Pick

Editorial

Financial Sector-sourced Glucose Drips No Remedy to Save Economy

November 27 , 2021

Against my will, I have witnessed the most terrible defeat of reason and the most sa...

Editorial

Contingency Economic Plan Necessary to Reconcile with Political Storm

November 13 , 2021

Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...

Agenda

Banks Miss Deadline, Mergers Prove Unattainable

October 16 , 2021 . By HAWI DADHI

Residing in a country with no capital market, an organised marketplace for trading se...

Agenda

Property Market Grinds to Halt

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...

Commentaries

Realising Africa’s Sustainable Energy Future

Growing economies and growing populations mean growing energy needs. The internationa...

Has Humanity Reached the Limits to Growth?

Fifty years ago this spring, one of the most influential books of the twentieth centu...

Fineline

Leaders of the National . . .

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. . .

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...

Editorial

Capital Market Does Little to Help Crowded Out Private Sector

May 21 , 2022

There was a great deal of handshaking and patting each other on the back at the Hyatt...

Macroeconomic Council's Glaring Omissions

May 14 , 2022

Diana Yohannes is one of those actively engaging in social media platforms with her T...

Stagflation Here: Damn If You Do, Damn If You Don't

May 7 , 2022

The Ethiopian Economic Association (EEA) recently proposed the formation of a macroec...

War Cost Emaciates Agricultural Productivity. Stop the War!

April 30 , 2022

There is no ambiguity in the UNDP's assessment of Ethiopia’s economic performance a...

Gallery

Parliament Approves New Cabinet Members

October 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

January 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

September 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

December 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

April 26 , 2019

Sunday With Eden

From the Pressure of Tragedy, Coal Can become Diamond

Since my father’s passing, my health has been deteriorating. I was grieving deeply...

The 'Crime and Punishment' of Ethiopian Travellers

Last week, as I was travelling to Frankfurt, Germany, my country sent me to a foreign...

Life Matters

Got Watery Milk? Or Useless Roach Killers?

Adulteration is getting out of hand. Consumers in Ethiopia are being left to their ow...

It's Okay Not to Be Okay with Life

It is impossible to talk about life without bringing up death. Death seems distant, something we often try to avoid discussing. We only real...