Ayke Textile plans 1bn Birr investment to expand its textile capacity

YarnsandFibers News Bureau 2014-04-03 10:15:00 – Ethiopia

Ayka Textile, a vertically integrated textile manufacturer, covering spinning, knitting, dyeing and sewing originally from Turkey moved to Ethiopia to stay competitive on the global market with an investment of 140 million dollars and build a vertically integrated subsidiary the Ayka Addis Group, which is operational since 2010. The group has planned one billion Birr investment plan to expand its textile production capacity and thus boost its exports.

The expansion will begin from April 2014 in two phases on six hectares of land. According to Amare Teklemariam, CEO of Ayka, the company has secured 3.6ha of land through lease for 70 years from the Kolfe Keranio District for its first phase, and is in the final stages of leasing an extra 2.6ha.

The first phase of expansion project will increase their present garment production capacity by 50percent and with the completion of second phase expansion in 14 months, the production capacity will be 100 percent and will also create job opportunities for 13,000 people.

From the total project cost of 962.5 million Br, building and civil work is expected to consume 221.3 million Br and 623.2 million Br will be spent on machinery and equipment. The remainder will be used as working capital.

The Company currently has five plants in Alem Gena town of the East Shoa Zone,Oromia Regional State(19km from Addis Abeba). These plants, now operating at 80-90 percent capacity, have the capacity to spin 40tns of cotton, knit 38tns of thread, dye 50tns of cloth and produce 80,000 pieces of garment – all in a day’s work, with 7,500 permanent and 100 temporary workers. The Company exports its produce mainly to Germany.

With the expansion projects it is expected to boost the Company’s export earnings to 150 million dollars, from 56 million dollars in 2012/13.

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