Chinese textile firm to set up shop here
Following an agreement between the Ethiopian Investment Commission (EIC) and the Chinese Wuxi No. 1 Cotton Investment Co. Ltd., a subsidiary of Wuxi Guolian Develoment Group, the textile manufacturer is set to install a plant inside the soon-to-be inaugurated Dire Dawa Industrial Park.
EIC Deputy Commissioner, Abebe Abebayehu, told The Reporter on Friday that the company has agreed to install a manufacturing plant in a 40-hectare factory shed within the park.
Declining to provide specific details about the size of investment Wuxi is about to make here, Abebe said the company is one of the largest manufacturers in China which is believed to contribute massively to Ethiopia’s textile sector.
According to a statement EIC sent The Reporter on Thursday, “the company will bring in a state-of-the-art manufacturing technology, know-how and excellence accumulated over a span of 100 years.” It also stated that Wuxi currently has a weaving capacity of 26,000 tons of yarns and 30 million meters of gray fabrics annually. The company is known for supplying leading global brands, and 75 percent of its products are exported to Europe, the US, Japan, South Korea and southeast Asia.
Based on the agreements signed last week, Wuxi No.1 Cotton Mill has decided to invest in a large-scale and integrated fabric mill and spinning plant at Dire Dawa, some 446 km east of Addis Ababa. The state-owned Wuxi No. 1 is expected to chiefly source inputs locally.