Chinese steel firm starts operation in Ethiopia
15 December 2016
Chinese steel manufacturing company Zhen Zhen officially commenced its steel production in Ethiopia on Tuesday.
The newly inaugurated steel plant, located in the Eastern Industry Zone in Ethiopia’s capital Addis Ababa, has an investment of 23 million U.S. dollars as part of its first-phase operation.
Raising a total investment of 50 million dollars, the second and third phases of the project will further boost company’s steel production capacity, according to Yi Xiu, General Manager of Zhen Zhen.
Though company’s current target is the Ethiopian market, it will soon embark on exporting its products to other East African markets and beyond, noted the manager.
With a capacity to produce 200,000 tonnes of steel products per year in its first phase, the plant is expected to have an annual output of 3.8 billion Ethiopian Birr (170 million dollars).
Speaking at the ceremony on Tuesday, Fitsum Arega, Commissioner for the Ethiopian Investment Commission, said that the company would substitute imported steel products and help the East African country to generate foreign currency.
The company will have greater role in providing row material to Ethiopia’s ever growing construction sector, said Fitsum.
Eastern Industry Zone, the first industrial park in Ethiopia, currently hosts 65 companies, of which 32 are already operational while the remaining 33 are under construction.