Saygin Dima Textiles would begin operations at its new textile manufacturing unit in Ethiopia by the end of March 2012.
The new factory would produce fibres, yarns and fabrics for both the domestic and export markets, Turan Ahmet Turan, General Manager of Saygin Dima, said.
The unit will also produce acrylic, cotton, wool, linen and other textile fibres. In addition, it also plans to focus on weaving and other items like linens, sweaters and socks.
The items manufactured at the new unit will be primarily meant for exports to EU and the US, as Saygin intends to take advantage of the Africa Growth Opportunity Act (AGOA), which supports African exports.
Saygin has initially recruited about 400 people to work at the new unit. Mr. Turan said the number of employees will go up to 1000, once the ongoing training being given by the company is completed.
Yidnekachew Taye, Vice President of Ethiopian Textiles and Garments Association, said, the association is making efforts to gain credit facilities for local garment units so they can buy some of the Saygin Dima products to use as a raw material for their items.
He said domestic textile products would become cheaper once the new unit starts production, and this would decrease import of low-priced textiles from other countries by about 80 percent. It would also mean that the Ethiopian textile firms would save money on tax that is paid on textile imports, he added.
Saygin Dima is a joint venture of the Ethiopian Government and the Turkish Saygin Group.
Fibre2fashion News Desk - India