India Company To Build US$550 Million Cotton Mill In Kombolcha, Ethiopia ADDIS ABABA, May 5 (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 governments 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 mills 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. The countrys huge potential for raw cotton, access to labour, power and water, as well as access to international markets and the fast economic growth are among the main reasons that the company decided to invest in Ethiopia. Industry State Minister Tadesse Haile on his part said the textile industry is one of the priority areas of the government in the manufacturing sub-sector. He indicated that the project will contribute share to create an inter-sector link between agriculture and industry and support Ethiopias efforts to achieve its GTP plan of transforming its agrarian economy to industry-led one. The project also improves the standards of life in the locality by creating an opportunity for farmers to sell their cotton products for the company and through infrastructure development, he added. I will also enable the nation get additional foreign currency from export of the product, since global demand for cotton yarn is high, he remarked. -- BERNAMA-NNN-ENA
Posted on: Mon, 05 May 2014 13:16:11 +0000
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