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PAKISTAN: JV between Turkish and government of 78.5 million dollars

A new textile factory established as a joint venture between Turkish investors and the federal government with a capital of 78.5 million dollars, in Sebeta, 24km from Addis Abeba in the Oromia Special Zone, is set to start production in January 2011. 

The factory was named after the Turkish company, Saygin, and the kebele where the factory is located, Dima; giving it the name Saygin Dima Textile Factory. It has been setting up three factories on a 60sqm plot of land granted by the Investment Board of the Oromia Regional State with a lease right of 80 years after the company paid compensation to farmers in the area. 

The company plans to produce cotton, various mixes of fibre products, acrylic, and wool produce in two of its facilities, while the third is to be used for spinning, weaving, and dyeing of textile products. 

The textile factory, which is 60pc owned by the Privatisation and Public Enterprises Supervising Agency (PPESA) and the remainder by the Turkish company, is required to export a minimum of 45pc to 50pc of its produce to the international market. 

“This factory will be the first to produce acrylic yarn, which currently is wholly imported,” Shewaferaw Girma, deputy general manager of Saygin Dima Textile Factory, told Fortune. “It will help in substituting imports and exporting processed textile products.” 

The Ministry of Trade and Industry (MoTI), which aims to increase its export earnings by 50pc from two billion dollars in the 2009/10 fiscal year, expects a lot of income from the export of textiles and garments. The government earned 21 million dollars from the textile sector in the 2009/10 fiscal year, which was a 3.9pc increase over the preceding budget year. 

The textile industry is projected to grow with four new textile factories, including Saygin, which is expected to join the sector in the 2010/11 fiscal year and MoTI projecting to secure 50 million dollars from their operations. 

“We are currently finalising the construction,” Shewaferaw told Fortune. “There was a holdup in construction due to the weather condition, but we hope to commence production in January.” 

Awassa Textile SC, Kombolcha Textile SC, Almeda Textile SC, Addis Izmir Textile Factory, and Garment Express are among the major textile and garment exporting enterprises in Ethiopia. Another textile factory involving Turkish investors, set up with an investment of 140 million dollars, Ayka Addis Textile Factory launched production last April 2010 and is currently the largest textile factory in the country, so far. 

Source: ynfx • News Courtesy: BharatTextile.com