Friday, January 20, 2023
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BusinessChemical Corporation to gain two public enterprises

Chemical Corporation to gain two public enterprises

After a failure to transfer Adamitulu Pesticides Processing Share Company and Awash Melkassa Aluminum Sulphate and Sulphuric Acid Share Company to a private ownership, Ministry of Public Enterprises has recommended to the Office of the Prime Minister to include the two Enterprises under the newly formed Chemical Industry Corporation.

According to sources in the ministry, the two enterprises are awaiting the approval of the proposal to be incorporated in the Corporation.

Just few months ago, the ministry as part of its plan to privatize the Enterprises has floated a bid to transfer them to private ownership. It is after a repeated failure to privatize them that the ministry finally changed the bid scheme from an open tender to negotiation. However, negotiations with the interested parties did not bear fruit either pushing the ministry to look into other alternatives.

The then Ethiopian Privatization Agency, which was first established in 1994 and later restructured as Privatization and Public Enterprises Supervising Agency (PPESA) and again changed its name into the Ministry of Public Enterprises, has managed to transfer more than 370 public enterprises to the private sector, to date.

If the proposal is approved, the two enterprises will be the fourth and fifth companies under the Corporation’s umbrella. The Chemical Industry Corporation (CIC) was established by the Council of Ministers regulation No. 280/2012, with a capital of 21.71 billion birr, with the objectives of coordinating and facilitating the development of the chemical manufacturing sub-sector.

The Corporation currently manages chemical manufacturing enterprises including Mugher Cement Enterprise, Natural Rubber Tree Development and Production Project and Coal-Based Urea Complex which are currently existing and as well as any other industries that may be established in the future.

Awash Meleksa was established in 1998 as a share company although it was built during the previous era. It involved in production of Aluminum Sulphate, Sulphuric Acid and Hydrogen-peroxide. It has 322 employees under it.

In 2015/16 fiscal year, Awash registered 81 million birr sale and 7 million birr gross profit.

On the other hand, Adamitulu which has been in the market since 1991 has managed to report 352 million birr sale and bagged 51 million birr gross profit.

Two years ago, Adamitulu has invested 27 million Br for construction and machinery acquisition and installation work which boosted its production capacity. 

By Dawit Endeshaw

 

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