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Indian firm to set up $550mn spinning mill in Ethiopia
05
May '14
India-based ShriVallabh Pittie (SVP) Group is setting up a US$ 550 million spinning mill in Kombolcha town, located in the Debub Wollo Zone of Ethiopia’s Amhara Region, Ethiopian News Agency reported.
 
The textile mill, to come up on 50 hectares of land at the industrial zone in Kombolcha, is likely to significantly contribute in achieving the objectives for the textile industry set in the Government’s Growth and Transformation Plan.
 
Kombolcha was chosen for construction of the textile mill due to its proximity to cotton growing regions of Metema and Humera, Vinod Kumar Pittie, chairperson of SVP Group said while launching the project.
 
The spinning mill is expected to be ready and full operational next year. It would have a capacity to produce about 280 tons of cotton yarn per day and would employ nearly 13,000 Ethiopians, Mr. Pittie said.
 
The yarn manufactured at the new mill would be mainly meant for the export market, especially to the US, Germany, Italy, Sweden and Turkey.
 
SVP Group chose to invest in Ethiopia for setting up their textile mill because the country has huge potential for raw cotton; availability of labour, power and water; fast economic growth; and access to international market.
 
The company would take advantage of various incentives that Ethiopia enjoys on its exports. For example, Turkey exempts its up to 18 percent anti-dumping duty for Ethiopian products.
 
Tadesse Haile, Ethiopian State Minister for Industry, said the textile industry is a priority for the Government in the manufacturing sub-sector, and added that the mill would act as an inter-sector link between agriculture and industry.
 
While supporting Ethiopian Government in achieving GTP targets, the project would also bring foreign exchange for the country as there is high global demand for cotton yarn.
 
Founded in 1898, SVP Group has interests across textiles, finance, retail and real estate. The Group promoted Platinum Textiles Ltd. was established in 1993 and manufactures polyester & cotton blended yarn. Last year, the company announced that it is investing $70 million to build a cotton yarn manufacturing facility near Sylvania, a city in Screven County, in the US state of Georgia.
 

Fibre2fashion News Desk - India


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