Fortune News | Jun 14,2020
Oct 19 , 2019
By ELIAS TEGEGNE ( FORTUNE STAFF WRITER )
In an attempt to save foreign currency, Hora Adama Automotive Assembly Arena, an assembler of three and four-wheel vehicles, announced a partnership with Horizon Addis Tyre to buy locally-manufactured tyres.
Horra, which would otherwise spend eight million dollars a year to import tyres with accessories from India and China, signed a long-lasting tyre supply agreement with Horizon Addis. Akalewolde Admasu, CEO of Horizon Addis and Adem Kedir, founder and CEO of Horra, signed the deal last week at a ceremony held at Horra's headquarters.
Samuel Halala, director-general of the Chemical & Construction Inputs Industry Development Institute, attended the agreement signing ceremony.
In May 2018, Horra inaugurated an assembly plant in Adama town, Oromia Regional State. Hora Adama Automotive Assembly Arena (H4A) was built for an investment of 750 million Br. The plant assembles the three-wheel Maxima Bajaj, the four-wheel Qute Bajaj and the three-wheel Cargo Maxima Bajaj. The plant assembles 30 four-wheel and 150 three-wheel Bajajs in eight hours.
After the inauguration of the plant, the company had been importing tyres, according to Solomon Habtamu, the motor director at Horra, a company which operates under Horra Corporate Group. The Group was established in 2005 and exports coffee, offers logistical services and is engaged in the real estate business.
Horra normally spends about two million dollars to import tyres for the vehicles that it assembles and six million dollars to import spare tyres a year.
Horizon Addis Tyre, formerly known as Addis Tyre, was established over three decades ago and went through many owners before finally being acquired by Horizon. In 2004, 61pc of its shares were acquired by Slovak Matador Tyre, which later renamed it Matador Addis. Then four years later, Matador sold half of its shares to the German-owned company Hanover.
Finally, in 2011, Horizon bought the shares of the two companies as well as the remaining shares owned by the government. Horizon Plantation, which was established in 2009, has invested 800 million Br in Matador.
Horizon Addis released a new batch of tyre products for three-wheel passenger vehicles, agricultural vehicles, off-road and industrial vehicles. Additionally, the company started manufacturing flotation tyres for sugar factory machinery.
Imported three-wheel tyres are sold for 1,600 Br, while the locally manufactured tyres sell for approximately one-third of that price, according to Akalewolde
Currently, Horizon produces 800 three-wheel tyres a day and plans to upgrade its production to 1,200 tyres a day within a month.
Henok Semaw, an assistant professor and dean of business and economics at Harmaya University, says local tyre production will play a significant role since three-wheel vehicles are becoming a popular mode of transportation.
In line with financial benefits, it is very valuable not only in stabilising the prices but also in saving the cost of logistics spent when importing products, according to Henok.
He justifies that the relatively low prices and the quality of the products help the company access more markets.
PUBLISHED ON
Oct 19,2019 [ VOL
20 , NO
1016]
Fortune News | Jun 14,2020
Fortune News | May 15,2021
Covid-19 | Apr 04,2020
Agenda | Feb 09,2019
Featured | Jan 05,2019
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
Apr 20 , 2024
In a departure from its traditionally opaque practices, the National Bank of Ethiopia...
Apr 13 , 2024
In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...
Apr 6 , 2024
In a rather unsettling turn of events, the state-owned Commercial Bank of Ethiopia (C...
Mar 30 , 2024
Ethiopian authorities find themselves at a crossroads in the shadow of a global econo...