Monday, May 05, 2014

India Company To Build US$550 Million Cotton Mill In Kombolcha, Ethiopia

(May 5, 2014, ADDIS ABABA, (BERNAMA-NNN-ENA))--A company from India, YSVP Textiles Plc, has launched construction of a US$550 million cotton mill in Kombolcha town in Amhara Regional State, about 360 kilometres north of here.

At the ground-breaki g ceremony for the constriuction, SVP Group Chairperson Vinod Kumar Pittie said the plant when operation was expected to make a significant contribution in advancing the goals of the Ethiopian government's Growth and Transformation Plan set for the textile industry.

The plant will be constructed at the industrial zone in Kombolcha on a 50-hectares site. The company chose to locate its plant in Kombolcha because of its proximity to Metema and Humera, where cotton is grown in significant amounts, Pittie said. Upon going fully operational after a year, the mill will produce nearly 280 tonnes of cotton yarn a day and create jobs for 13,000 Ethiopians, the Chairperson said.

According to him, the mill's output is meant primarily for export, with Germany, Turkey, Italy, Sweden and the United States as the main target markets. The company will take advantage of various incentives available in Ethiopia, such as eligibility for exemption of its up to 18 per cent anti-dumping duty imposed by Turkey for Ethiopia, he said. Read more from Bernama - Malaysian National News Agency »

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