A local manufacturer of consumer goods plans to invest three million dollars to expand its spray drying detergent powder plant's production capacity.

East African Tiger Brand Industries plans the expansion inside Eastern Industrial Zone in Dukem, some 40Km west of the capital. To hire a company that will construct the new plant, East African Tiger has floated an international tender.

Expected to start within two to three months, construction is planned to be completed next year. The existing detergent plant produces three tonnes of powder detergent an hour, and the new plant will boost that volume to eight tonnes an hour, nearly tripling its capacity. The project will also increase the number of employees to 500 from the current 400.

The company was established 23 years ago by prominent businessperson Buzuaeyu Bizenu. It sold 51pc of the shares to South Africa's Tiger Brands in 2011. However, the partnership of the two companies ended in 2016 after East African Holdings acquired the shares of Tiger Brands and the acquisition process was completed last year.

Following the divorce, East Africa Holdings is in the process of changing the name of the company to East African Lion Brand Industries, which is pending with legal proceedings and clearances with the Ethiopian Investment Commission and is expected to be finalised in three months.

East African Tiger Brand Industries has a total of 1,500 employees working in its four units, which manufactures personal care, home care, packaging and food products. East African Holdings operates 16 companies, clustered in engineering and construction, manufacturing and agro-processing, marketing and distribution.

In response to the increased demand, the project is part of the strategic plans of East African Holdings for 2020, according to Fitsum Nigusse, marketing and corporate communication director with the company, which is one of the 348 companies registered in the country to manufacture detergents.

"The local and the Horn of Africa markets in Sudan, Djibouti and Somaliland are our potential customers," he adds.