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Friday, 30 April 2010 20:25

Heavy Machinery At 84tn Lugged in for Chinese Cement Factory

By Wudineh Zenebe

ADDIS ABABA, Ethiopia, April 13 (Addis Fortune) - Machinery weighing a total of 84tn was delivered on April 8, 2010, for the cement factory, which Jiangsu Qiyan Investment group is building for the sole purpose of supplying cement for the Eastern Industry Zone, yet to be constructed.


The construction is taking place in Dukem Town, in the Oromia Special Zone. Its estimated annual output of 250,000tn of cement will be used solely for the construction of the Eastern Industry Zone, according to Shimeles Wolde, director of Chemical Industry Development for the Ministry of Trade and Industry (MOTI). The factory is being constructed within the perimeter of the land allocated for the industry zone.


"The factory is being constructed very rapidly," said Shimeles. "The speed is amazing." The factory is expected to be completed over the coming two months. The factory will import clinker duty-free.


Two other companies were allowed to import clinker duty-free two weeks ago after Minister for MoTI Girma Birru made the request in their favour to Minister for Finance and Economic Development Sufian Ahmed. These two are Avorniga, which has rented the Addis Abeba Cement Factory, and the new Wang Shang Cement Factory, which was constructed near Modjo.


The MoTI made the duty-free privilege request for three companies, including Red Fox, whose name was not on the list in Sufian's letter approving the request.


"It could be by mistake. Red Fox will get the permission," said an official at the MoTI, who is working closely with the issue.


The construction of the Eastern Industry Zone, which will cost five billion dollars, is expected to begin before the end of the fiscal year, although the five square kilometres of land that have been granted are yet to be handed over by the Oromia Regional State. Eighty Chinese companies in textile, leather, and metal industries are expected to be based in the zone.


"When the cement factory begins production, so will the construction of the zone," said Ayenew Ferede, who follows the development of industry zones at the MoTI.

The Ethiopian Government has agreed to cover 30pc of the infrastructure development cost for the zone, according to an official at the ministry.


The project is being closely followed by Prime Minister Meles Zenawi. Turkey and India are also in the process of developing their own industrial zones in Ethiopia.



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