Koreans erect USD 30 mln steel factory in Dukem
EKOS Steel Mill Plc, owned by investors from South Korea built at a cost of USD 30 million was officially inaugurated on October 16, 2018, The Reporter has learnt.
It was inaugurated in the presence of President Mulatu Tehome (PhD), Officials from Oromia regional state, and the South Korean Ambassador in Ethiopia, Hoon-min Lim attending the grand opening of the factory in Dukem.
“The factory came to invest in Ethiopia upon the invitation of the Ethiopian government,” said Teshome where he personally invited the investors to consider investing here in Ethiopia.
“I am happy that the factory is now opened and I fully pelage my support,” said the president.
EKOS began the construction of the factory back in 2014 after securing land from Oromia region. Following that, the company has invested close to USD 30 million to construct the factory which has the capacity of producing 210,000 tons of re-bars and wire-rod products.
Given the shortage of foreign currency, the company was struggling to import raw materials for months.
“We just recently received a few hard currencies and we have imported raw materials which will contribute to the production of 15,000 tons of re-bars and wire-rods in the coming few months,” said Shell H. Choo, CEO of the company.
“We hope the problem will be solved soon,” he added.
The company which currently has a 150 staff, imports its raw material from Ukraine, Poland and South Korea.
In the second phase of its project, EKOS has a plan to construct an electric furnace plant which will have a capacity to produce 500,000 metric tons billet raw materials.
In order to produce the aforementioned billet, the company has planned to locally source 200,000 metric tons of inputs from scrap metals where as the rest will be imported.
“Annually, this country will be able to save some USD 50 million on import cost,” reads the statement issued by the company.
EKOS will priorities the local market with the aim of import substitution. In addition, it will export its product and generate revenues.