Textile Company Set to Launch Under New Ownership

Aug 12 , 2023

The sprawling textile manufacturing company formerly known as Ayka Addis is set to begin production under the new banner Buluko Integrated Textile Factory following its purchase by the Oromia Public Enterprise for 1.82 billion Br six months ago. Located 20Km west of Addis Abeba, in Alemgena, Oromia Regional State, the textile factory is set to restart a four-year halt resulting from defaulted loans of two billion Birr owed to the Development Bank of Ethiopia (DBE). The state-owned policy bank had been paying salaries to 4,300 Ayka Addis employees during the period despite seizing production. Senior officials from the Ministry of Industry visited the factory last week, pledging to support the company as it vyes to increase its employee base and begin production. AYKA was initially established in 2006 by three Turkish shareholders with 679 million Br paid-up capital and began operations in 2010 following a subsequent loan by DBE of 813 million Br. The Oromia Public Enterprise has 56 companies under its fleet and has plans to transfer completer ownership to the private sector in the long run. Declining textile exports due to Ethiopia's expulsion from the Africa Growth and Opportunity Act (AGOA) in 2021 led to the termination of operations by several large firms like Philips-Van Heusen Corporation (PVH Corp). Over 90pc of exports from industrial parks have been textile and garment products, luring foreign companies with a labour market that has the lowest wages.