Fortune News | Sep 22,2024
A local trading company, G-Seven General Trading & Industry opened a new jute sack manufacturing factory in the Hadya Zone of the SNNPR for a cost of 60 million Br.
The factory, which lies on 3,600Sqm of land, will produce 8,000Kg of jute sacks a day, each with holding capacities ranging between 30Kg and 100Kg.
The company's product is targeted at producers of grain, coffee, pulses, oilseeds and flour, as well as customers in the textile and leather industries.
Machinery imported from India has been installed inside the new building constructed by Jenberu Fantahun Construction.
“We are waiting for the electric power supply to be installed before we start operation,” Mizan Demsash, project manager of G-Seven Trading and Industry PLC, told Fortune.
The factory will create 1,220 permanent and 500 temporary job opportunities and use jute, sisal and enset fibers as raw materials for the manufacturing of sacks and twine. Some of the raw material will be sourced locally, but most of it will be imported from Bangladesh.
“Sourcing of materials is a major problem for us,” Nuredin Awol, managing director of G-Seven, told Fortune. "We are not getting the necessary support from the government in terms of tax incentives."
The 13-year-old company also owns Meher Fiber and Ethiopian Fiber factories, located in Addis Abeba, which produce fiber products for packaging for both the domestic and export markets. The company is also currently establishing another factory in Benshangul-Gumuz Region's Metekel Zone, for which 50pc of the construction is finalised.
For Tekalingh Mamo, general manager of Yirga Cheffe Coffee Farmers Cooperative Union, the establishment of such a local packaging factory is commendable.
"Since an adequate quantity cannot be sourced locally, we have to waste money and time to import it,” he says.
There are 251 companies with a total investment capital of 1.4 billion Br that have received licenses from the Hadiya Zone Investment Bureau, out of which 84 are engaged in agriculture and 39 in industry. From those, 72 projects are in the pre-implementation stage, while 86 projects have become operational.
These projects have 4,148 and 10,463 permanent and temporary employees, respectively.
“We are engaging in promotional activity,” says Mitiku Zeleke, acting head of the Bureau. “We are organising annual investment forums and events.”
Tadelle Ferde (PhD), an economics lecturer at Addis Abeba University for more than 25 years, believes the project will benefit the local economy.
"Locally-produced packaging will minimise import costs," he says. "If this is met with a better quality of exportable products, the economy of the country will benefit."
PUBLISHED ON
Dec 05,2018 [ VOL
19 , NO
971]
Fortune News | Sep 22,2024
Agenda | Jan 07,2023
Commentaries | Mar 25,2023
Radar | May 23,2021
Radar | Nov 09,2019
Radar | May 26,2021
Fortune News | Jan 21,2023
Radar | Dec 21,2019
Agenda | Sep 09,2023
Radar | Sep 19,2020
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transportin...
Jul 13 , 2024 . By MUNIR SHEMSU
The cracks in Ethiopia's higher education system were laid bare during a synthesis re...
Jul 13 , 2024 . By AKSAH ITALO
Construction authorities have unveiled a price adjustment implementation manual for s...
Nov 2 , 2024
Addis Abeba, fondly dubbed a 'New Flower,' is wilting under the weight of unchecked u...
Oct 26 , 2024
When flames devoured parts of Mercato, residents watched helplessly as decades of toi...
Oct 20 , 2024
Central Bank authorities have unveiled no less than six new guidelines to fine-tune t...
Oct 12 , 2024
In his inaugural address on October 27, 2024, Taye Atseqesellasie, the fifth presiden...