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ETHIOPIAN TEXTILE INDUSTRY PRESENT STATUS AND FUTURE GROWTH PROSPECTS R B CHAVAN IoTEX BAHIR DAR UNIVERSITY BAHIR DAR, ETHIOPIA [email protected]

Final iotex seminar

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Page 1: Final iotex seminar

ETHIOPIAN TEXTILE INDUSTRY PRESENT STATUS AND FUTURE GROWTH PROSPECTS

R B CHAVAN IoTEXBAHIR DAR UNIVERSITYBAHIR DAR, ETHIOPIA [email protected]

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ETHIOPIAN TEXTILE INDUSTRYPRESENT STATUS AND

FURTURE GROWTH PROSPECTSProf. R. B. CHAVAN

Institute of Technology for Textile, Garment and Fashion Design Bahir Dar University, Bahir Dar, Ethiopia

2010

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TOTAL NUMBER OF PAGES 300NUMBER OF CHAPTERS 11REFERENCES 80 Chapter 1 Ethiopia: general information

Chapter 2 Cotton production: Present status and future growth plans

Chapter 3 Need for development of grading system for Ethiopian cotton

Chapter 4 Assessment of textile sub-sector

Chapter 5 Assessment of garment sub-sector

Chapter 6 Current status of textile, home textile and garment sector in Ethiopia

Chaprter 7 Handloom clusters and export

Chapter 7 Handloom clusters and export Potentials of handloom sector

Chapter 8 Quality standards care labels and packaging

Chapter 10 Swot analysis and recommendations

Chapter 9 Strategy for entry into export market

Chapter 11 Business in ethiopia: opportunities, incentives and regulations

References

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PRESENT PRESENTATION

CURRENT STATUS

COTTON SECTOR

GARMENT SECTOR

TEXTILE SECTOR

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COTTON SECTOR

AREA CULTIVATED 110,000 ha

PRODUCTION

SEED COTTON 129,000 ton

LINT COTTON 47694.4 ton

YIELD/haSeed cotton 1.17 ton

STATUS 2009/10

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IRRIGATED AND RAIN FED LANDAwash valley NORTH OMO (SOUTHERN REGION)ABABO (GAMBELLA REGION)GODE (OGADEN REGION)

RAIN FED LANDGONDER (HUMERA REGION), SIDAMO (BILATE REGION) GAMO GOFA (ARBA MINCH REGION) WHERE THE ANNUAL RAINFALL IS MORE THAN 700 MM.

COTTON CULTIVATION REGIONS

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POTENTIALS FOR COTTON CULTIVATION

LAND SUITABLE FOR COTTON

CULTIVATION 3 MILLION HA

PRESENTLY USED 110,000 HA

COTTON LAND UTILIZATION 3.6%

PAKISTAN 4TH LARGEST

PRODUCER OF COTTON

LAND AVAILABLE 2.9 MILLION HA

COTTON PRODUCTION

2.5 MILLION TON

IF ALL THE LAND SUITABLE FOR CULTIVATION IS USEDETHIOPIA CAN BE ONE OF THE LARGEST PRODUCER

OF COTTONIN WORLD

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REGIONS AND LAND AVAILABLE FOR COTTON CULTIVATION

High potential cotton Woredas land suitable % of Total producing areas 38 No. 1.9 million ha 63.3%

Low potential cottonProducing areas 79 No. 1.1 millon ha 36.7%

Total 117 3 million ha 100%

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PLANTING AND HARVESTING PERIOD

Planting and harvesting periods in different regions

Area Planting period Harvesting periodLower Awash June to August November to

January Middle Awash and Rift valley

April to June November to December

Upper Awash April to May September to November

Hummera Mettema and

Gambella

June to August November to January

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COTTON SPECIES, YIELD AND QUALITY PARAMETERSSpecies

NameSeed

cotton Yield with Irriga-tion

Kg/ha

Seed cotton

Yield only RainfedKg/ha

Quality index

Lengthmm

Strength

lb/in

Fineness

mv

Evenness

%

Maturity%

Acalasi SJ-2 3250 -- 28.6 39.4 3.2 47.1 77.5Deltapin t-90 3850 -- 27.7 38.3 3.7 47.7 78.7

Stonell e-1234 3854 -- 27.9 36.1 3.6 47.8 78.0Carolina Queen 4960 -- 27.2 38.5 3.8 46.5 82.8Cu-Okra 4950 -- 26.1 39.4 4.0 46.6 83.8

Cucurov A1518 5280 -- 27.0 37.0 3.8 46.6 82.1Bulk 2020 2242 28.1 38.7 3.5 47.0 75.1Arba 2030 30.3 40.0 3.5 47.1 77.0

Reba B-50 1804 26.3 36.4 3.2 48.4 70.9Albar 1672 27.3 40.2 3.5 48.5 73.8

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MARKETING CHAIN

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COTTON PRODUCTION

THOUGH COTTON CULTIVATION IN ETHIOPIA IS CARRIED OUT FOR CENTURIESIT WAS MAINLY BY SMALL SCALE FARMERS USING TRADITIONAL METHODS

BEFORE 1960 COTTON WAS IMPORTED FOR THE PRODUCTION OF TEXTILESCOTTON IMPORT 30% OF TOTAL IMPORTS IN THE COUNTRY.

COMMERCIAL PRODUCTION STARTED IN 1960 ONWARDS

1960-1992 LARGE SCALE FARMING WAS CARRIED OUT BY STATE FARMS

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2008/09Three state farmsUpper Awash, Abobo, and Vegetable and Fruit Development Enterprise.

Private farmsLower Awash, Middle Awash, Birale, Humera, Metema and Wollega

Small-hold farmersLarge number The traditional cottage industries including handlooms and handicrafts were fully dependent on cotton supplied by smallholders.

PRIVATIZATION1992 GOVERNMENT ALLOWED THE ENTRY OF PRIVATE FARMS

Present stakeholders in cotton production

State farms (2003)Tendaho, Middle Awash, Upper Awash, North Omo Abobo.

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CULTIVATED AREA AND PRODUCTION SHARE

Stake holder Area cultivated

%

Production share

%State farms 30 32Private farms 43 56Small-hold farmers

27 12

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PRODUCTIVITY OF COTTON

Type of producer

Productivity (T/ha)Rain fed Irrigated

Small holders 0.5-1.0 -Private farms 1.5-2.0 2.0-3.0State farms 1.5-2.0 2.0-3.0Research institutes

3.5-4.5

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GINNERIES Total 13Functional 11In planning 01

Location Number PrivateAddis Ababa 04 Gonder 02 Humera 01 Government Middle Awash state enterprise

01

Tendaho farm

01

South Omo farm

01

Abobo State Enterprises

01

Total 11

Ginning capacity 200,000 Ton per annum

2009/10 cotton production 227730 Ton

Additional Ginnery in planning

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COTTON PRODUCTION CONSUMPTION, EXPORT AND IMPORT

No. Year Lint Cotton

consumptio

n

Cotton

export

Cotton

import

1 2003/04 31,406 17,218.2 7,562

2 2004/05 16,579 16,156.7 8,189

3 2005/06 27,693 15,517.8 1,228 211.8

4 2006/07 34,184 21,465.5 6,177 669.4

5 2007/08 36,300 16,648.4 11,760 1,295.2

6 2008/09 47,694.4 15,624.9 14,907

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FUTURE PROJECTIONS FOR YARN PRODUCTION, SEED COTTON REQUIREMENT, LINT COTTON, LAND (2010/11-2014/15)

S.No

Year Yarn ProductionTon/year

Efficiency%

Seed cotton Requirementton

Lint cotton Requirement ton

Export projectionTon

TotalLint cotton ton

Land requirement Projectionha

1 2009/10 25858 68 87358 32322 - - -2 2010/11 46425 90 158049 58478 16986 75464 171550

3 2011/12 60860 90 205609 76075 19364 95440 1936554 2012/13 93465 90 315765 11683

322075 138908 374977

5 2013/14 127720 90 431491 159651

25166 184818 453533

6 2014/15 170097 90 574656 212622

28689 241312 542858

Land utilization2008/09 3.60%

2014/15 18.10%

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TEXTILE SUB AND GARMENT SUB SECTOR

Ethiopia has long tradition of manufacturing textile on cottage industry scale

Hand spinning

Handloom weaving

Major employment generation particularly rural areas

TRADITIONAL TEXTILES

Estimate 500,000 handloom weavers

Even more number of hand spinners

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INDUSTRIAL TEXTILE MANUFACTURING

First integrated textile mill Dire Dawa Textile Mill Established by foreign capital in 1939. (Italian)

This was the Beginning of the textile manufacturing on Industrial scale

During 196o’s5 large-scale integrated textile enterprises were established mainly by

private capital,

The socialist regime, which reigned from 1974 to 1991, nationalized private textile and apparel firms and at the same time established 4 more integrated textile mills to expand the sector in order to satisfy the domestic demand for regular textiles and substituting imported products.

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TEXTILE MILLS, GARMENT FACTORIES AND ALLIED DATA

Organization Government PrivateCotton farms 5 (present 3) 5Ginnery 4 7Textile mills 7 2Yarn and Sewing thread

2 -

Fibre/Blanket 1 -Handloom 3 (organized)

Very large number on cottage scale

Garment 5 32Business AssociationsExcept agriculture

7 1

Educational institute 1 (Iotex) Few more started textile courses)

Textile training centres

10 ?

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CURRENT POSITION

Daily production capacity

Yarn 106 tonsKnitted fabric 59 tonnes Woven fabric 264,000 meters

most of the machines are outdated, some up to 50 years old,

Spindles 237,000Looms 1553Knitting machines 95

country is leasing plants to private Ethiopian investors to increase productions yarn, woven

and knitted fabrics

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GARMENT SECTOR

Government factories1963 Akaki garment factory1983 Guide Garment 1992 Nazreth Garment

Current estimatePrivate 70-80Government 05

EquipmentsBefore 2005 old, After 2005 State of art

Garment manufacturing on industrial scale started in the 1950s 1950 Addis Garment factory by an Italian (Which was later nationalized)

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FABRICS AND ACCESSORY SUPPLY

Domestic marketDomestically produced fabric

While in majority of cases the clothes for exports are made from imported fabrics. Even the use of accessories such as lining cloth, buttons and zippers depend on import, due to the absence of domestic manufacturing

Export marketImported fabricIncluding the accessories like ZippersButtonsLining cloth

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THE MAIN EXPORT PRODUCTS

Knitwear (Mostly 100% cotton)T-Shirts, polo shirts, sweatersPyjamas, underwear

Woven garments (Cotton and mixture)Casual shortsTrousers, shorts, BermudasWork garmentscorporate fashion and uniformsOutdoor jacketsSports dressesWoven Home

textilesHandloomCurtainsFurnishing

Household Textiles (Handloom) kitchen towels, gloves, napkins etc. table cloth, table mats, napkins sets bed sheets, cushion covers etc.

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PRODUCTS

Domestic

Work wearUniforms for schools, military, government agencies private companies.

Exports

According to buyer demand

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GROSS VALUE ADDITION WITHIN THE TEXTILE AND GARMENT PRODUCTION

Spinning 15 %

Weaving 15 %

Knitting 20 %

Dyeing / Finishing 12 %

Finished Garment / Product 35 %

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Type of business

Buyer responsibility

Ethiopian manf.Responsibility

Export target gr.

1 Sub-contracting (CM business)

Fabric, trims and accessories provided by the buyer

Production (Cutting, sewing, pressing, finishing and packaging

Garment industry

2. Advanced sub- contracting (CMT business).

Fabric provided by the buyer

ProductionPurchase of trims (e.g. buttons, zippers, interlining etc)

Garment industry

TRENDS IN GARMENT SECTOR AND TYPES OF CO-OPERATION

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Type of business

Buyer responsibility

Ethiopian manf.Responsibility

Export target gr.

3 RTU (Ready to use) Business.

Product samples/Designs provided by buyer

ProductionPurchase of trimsPurchase of all fabrics, yarns and accessories, packaging material etc.

Garment industry

4 Ready made business

No responsibility

ProductionPurchase of all fabrics and trims Development of basic product design Retail brand/private label

Sales intermediariesLarge retail

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Type of business

Buyer responsibility

Ethiopian manf.Responsibility

Export target gr.

Collection business

No

responsibilit

y

ProductionPurchase of all fabrics and trims Development of product line (multiple products) Brand name marketing Image cultivationLife style concept

Sales intermediariesLarge retailSpecialist retails

The majority of garment manufacturers in Ethiopia works on a CM / CMT

The necessity to move from CM/CMT to RTU/ RTS type of co-operation is part of the development trends on the international garment markets .

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RISK, MERITS AND REQUIREMENTS TO MOVE FROM CM/CMT/RTU TO RTS/COLLECTION BUSINESS

• High risk • High profits

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PRODUCTIVITY AND QUALITY (BENCH MARKS) IN MAJOR GARMENT PRODUCING COUNTRIES OF INSTALLED CAPACITY

1= Eastern and South China 2= Western and Northern China

High productivity of Turkey

40 years experience

Skilled labor force

Qualified technical and managerial staff

Qualified designers

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INTERNATIONAL SYSTEM FOR PRODUCTIVITY INCREASE

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Because of low labor cost, any improvement in productivity will provide a competitive advantage to Ethiopian garment sector.

This should be possible because many garment factories are technically very well equipped

it would be important to improve the qualification of the machine operators and

internal production planning (e.g. material and work flow etc.) in order to improve productivity.

This means that a productivity increase would not require large investments (compared to purchase of new machinery).

IoTex can play a major role in productivity and quality improvement by providing training

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AVERAGE PRODUCTION, TIME FOR SELECTED PRODUCTS (APPROX. IN MINUTES PER ITEM)

The average production time per item in Ethiopia is currently significantly higher than in competitive supplying markets which shows, that the level of productivity is also comparably low.

Products CountriesSoutheast Asia(e.g.China, Vietnam,Thailand)

South Asiae.g. India, Pakistan,Bangladesh

South EsternEurope(e.g. Romania,Bulgeria, Turkey)

Ethiopia

Basic T-shirtCotton

6 9 8 35

Basic Polo shirt cotton

7 10 10 45

Basic mens casual trousers, cotton

20 20 25 120

Basic mens casual shirts, long sleeve

18 20 20 80

Mens formal jacket

150 130 120 300

Working overall, cotton

25 25 28 200

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BENCHMARK ON PRODUCTION OUTPUT

Products Average output per hour per operator(Approx. in No. of items per hour)

Basic T-shirtCotton

12-15

Basic Polo shirt cotton 12-15Basic mens casual trousers, cotton

2-3

Basic mens casual shirts, long sleeve

2-3

Mens formal jacket 1 item each 2-3 hoursWorking overall, cotton 2

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Besides a low productivity Ethiopian garment manufacturers likewise show relatively large production capacities but a capacity utilization of average approx. 20-30 % only.

This was a result of lack in experience of the factory owners / investors regarding setup of garment production facilities and efficient production planning in general.

The availability of production capacities in Ethiopia might be a future advantage but currently responsible for relatively high maintenance and depreciation costs.

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QUALITY STANDARD

Regarding the quality standard of the products in Ethiopia

the quality of materials (yarns and fabrics) as well as

the quality of workmanship has to be taken into consideration

The cotton yarn produced in Ethiopia meets only partly international quality standards and customer requirements because of medium or short staple of raw cotton that is used.

In addition to that the finishing of cotton yarn is not yet up to international requirements because of lack of know-how regarding dyeing, softening and other chemical treatments.

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In case of imported yarns and fabrics material quality meets the export market requirements because purchase is usually made in major supplying markets such as China, India or in co-operation with buyer recommendation of yarn and fabric suppliers.

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QUALITY OF WORKMANSHIP

The quality of workmanship strongly depends on technical equipment and qualification of machine operators there are many garment factories with excellent machinery, lack of qualification and efficiency of operators and line inspectors / production management lead to quality problems and in many cases to an extremely low productivity. One of the reasons for this is the very recent setup of many Ethiopian factories and the fact that most of the factory owners / general managers do not have their origin in textile and garment business. (low garment business experience)

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LABOR COST

Garment production cost in different countries

One of the competitive advantages of the garment industry in Ethiopia is relatively low production costs due to a

comparably low level of salaries for machine operators.

This advantage is partly compensated by

low productivity and

poor production planning.

Basis: medium productivity level of approx. 60 % average number of machine operators 30

Country Approx. cost per working hourIn the garment industry2006 in US $

Germany 21.30France 16.60USA 14.90England 14.60Japan 11.80Hungary 3.20Poland 2.50Romania 2.00Bulgaria 1.90Thialand 1.00Srilanka 0.80India 0.60Pakistan 0.40Bangladesh 0.30China 0.25Vietnam 0.25Ehiopia 0.15

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STATUS OF PRODUCT DEVELOPMENT

Collection or product development of international standards does not yet exist in Ethiopian garment industry

as most of the garment manufacturers were concentrating on setting-up the technical facilities and machinery park of their factories.

Some Ethiopian companies started to create own design ideas or basic product designs for the domestic market

but are not yet working in an efficient and appropriate manner suitable for prospective export markets.

This is mainly due to absence of fashion design school

Iotex has taken the lead in this direction

As an Iotexian we all should be proud of this historical beginning

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PERFORMANCE ANALYSIS (CASE STUDIES)

Corporate solution on behalf of ecbp has carried a performance analysis of 14 Ethiopian textile, garment and home textile manufacturers. The company analysis was focused on

• Main products and qualities

• Present type of co-operation with potential export customer

• Production performance

• Export marketing performance

• Management skills

• Financial basis of the company

Most of the analyzed companies showed potential for

basic or advanced subcontracting business for a co-operation with export customers (CM, CMT).

A ready-made collection is not yet offered by any of the analyzed companies.

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ANALYSIS SUMMARY

Very good technical equipment,

very low production costs

very low productivity

Inadequate staff qualification (e.g. production and marketing)

Absence of export marketing to benefit from competitive advantages

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TEXTILE AND GARMENT EXPORTSExport in

2004/2005 USD 4 million (approx. 0,5 % of total Ethiopian exports)2005/06 USD 11.0 Million2007/08 USD 12.6 Million 2008/09 USD 14.6 Million2009/10 USD 25 million

The textile and garment sector in Ethiopia currently plays a minor economic role for the country

Export of China and Turkey

China USD 81billion

Turkey with USD 11 billion. Export targets

2010/11 USD 500 million2014/15 USD 1 billion

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FOREIGN INVESTORS CAN PARTICIPATE IN ETHIOPIAN’S TEXTILE INDUSTRY

The government of Ethiopia invites companies to participate in the investment of Ethiopia's textile industry by establishing cooperation with Ethiopian public enterprises.

Foreign companies can participate in this industry in the following three forms:

a) Joint ventureb) ownershipc) Contract Management

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TEXTILE AND GARMENT SECTORS WHO ARE SEEKING FOREIGN PARTNERS

1. Ethio-Japanese Synthetic Textile Share Co.

2. Bahir Dar Textile Share Co.

3. Kombolcha Textile Share Co.

4. Awassa Textile Factory

5. Arbaminch Textile Share Co.

6 Dire Dawa Textile Factory

7. Debre Berhan Blanket Factory

8. Ediget Yarn and Sewing Thread Factory

9. Adei Ababa Yarn Share Co.

10. Akaki Garment Share Co.

11. Addis Garment Share Co

12. Gulele Garment Factory

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Investors have the advantage of Common Market for Eastern and Southern Africa (COMESA), with access to 20 countries and 380m people,

Trade rulings that allow duty free exports of textiles through the African Growth and Opportunity Act (AGOA) of the United States, and

Everything But Arms (EBA) initiative of the European Union (EU).

Liberal government incetives

EXPORT AVENUES FOR INVESTORS

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FOREIGN INVESTMENTS

TURKEY INVESTMENT

AYKA Textile Industry relocates to Ethiopia

Largest Turkey textile companyEstablished in 1988 at IstanbulRelocating textile and garment activities in Ethiopia2006 Registered as local subsidiary company Ayka Addis PLCCapital USD 100 millionShare holdersAYKA textilesYusuf AvdanizGurkav Kavalikli

AYKA is first largest investment in Ethiopia

The company has been granted 15,000 sqm of a plot in Alem Gena, 18Km west of Addis Ababa, from the Oromia Investment Commission. The factory was inaugurated by the Minister of Trade and Industry, and Oromia State Chief in 2008.

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The company has become fully operational from April 29,2010Inaugurated by Prime Minister Ato Meles Zenawi

AYKA Addis has plans to manufacture its products in two phases,

The first phase spinning and knitting, second phase finishing and garment production.

Production capacitySpinning plant 20 tons per day

Knitting and dyeing plant 40 tons per day.

The shifting of Ayka Textile Industry of Turkey, has made the local Government optimistic about the possibility of other big textile companies relocate their bases in Ethiopia.

Aim to Create 1000 jobsexport worth USD 70 million per year when both the phases become fully opertional

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U.S. FIRMS PARTNER WITH ETHIOPIA’S ALMEDA TEXTILES IN LONG-TERM APPAREL DEAL

Almeda Textiles is a member of the Effort Group, and two U.S. companies, Atlas Manufacturing Group and Pinnacle Textiles, signed agreements in Addis Ababa establishing long term relationships in the apparel sector.

Atlas is placing orders with Almeda worth $3 million for T-shirts and other garments for delivery throughout 2010,

Pinnacle has forecast orders of kitchen wear valued at $7 million for the same period.

These partnerships will lead to initial production volumes of more than one million units of T-shirts, kitchen wear and uniforms per year, providing jobs to over 1000 Ethiopians.

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NEPSA TEXTILE PLC

Nepsa Textile Plc, which is a subsidiary of one of the major textile producers in Turkey,

opening a factory in Ethiopia with an initial investment capital of ETB 25 million. Oromia regional government has already provided a 7.5 hectare plot of land to the company in Sebeta, Oromia zone.

Nepsa Textile Plc will supply 50% products to domestic market 50% export market including Turkey.

Nepsa Textile’s investments in Ethiopia will be beneficial in terms of technology transfer job creation

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GOVT & TURKISH JV SETS UP TEXTILE UNIT

A joint venture, between the Government of Ethiopia and investors from Turkey, has established a new textile unit with an investment of US $78.5 million in Sebeta.

It is located at a distance of about 24 km from Addis Abba, which falls under the Oromia Special Zone.

This unit will start the manufacturing in January, 2011.

The industrial unit was named as Saygin Dima Textile Factory, after the

Turkish company – Saygin and the region where the unit is located – Dima.

It is going to start three units on a plot of land that was approved by the Investment Board of Oromia Regional State.

The company plans to set up facilities for spinning, weaving, and dyeing of textile products. The Privatisation and Public Enterprises Supervising Agency (PPESA) owns 60 percent and 40 percent ownership is held by the Turkish company. MoTI is expecting to generate $50 million from the functioning of these units.

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INDIAN INVESTMENT

SPINTEX INDIA

Spintex was established in India in 1972. It has been producing machinery for spinning, weaving and knitting.

The company will fully own the factory in Ethiopia.

Spintex, has received 50 hectare of land at the Kombolcha Industrial Zone in the Amhara Regional State. It will produce 100 Tons of yarn/day, which is five times the capacity of Ayka Addis.

it will export one billion USD worth of products a year in seven years time.

The arrival of Spintex is expected to be a major boon for the sector.

Spintex has also plans to cultivate cotton on 50,000 ha land

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THE ITALIAN INTERVENTION ON TEXTILE AND GARMENT SECTOR

Programme Aid of Italy decided to assist the Ethiopian Ministry of Trade and Industry with the rehabilitation of seven textile and garment public industries already included in the list of public enterprises to be privatized with a budget of 9 million euros.

Currently, these textile and garment factories are either on their way to be or are already privatized.

Gulele Garment was bought by a local investor while

Adey Ababa and Ediget Yarn are under negotiations to be leased by Italian and local entrepreneurs with an option to buy.

Akaki Garment has garnered the interest of a Turkish investor.

The Privatizing Agency is evaluating the purchasing offers for Addis Garment.

The Kombolcha Textile and the Ethio-Japanese Synthetic Textiles are in the pipe line to begin the privatization process.

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ETHIOPIAN GOVT. BANS COTTON EXPORTOCTOBER 23, 2010

The Ethiopian government has banned the export of raw cotton due to an increase in demand from local textile and garment manufacturers and a hike in the international price, sources at the Ministry of Trade (MoT) disclosed

According to Assefa Aga, general manager of Ethiopian Cotton Producers, Ginners, and Exporters Association (ECPGEA)

"The local demand for cotton this year is expected to be 57,000tn while supply is expected to be 51,000tn,“

"If there is no ban on exports, local textile producers will be forced to import cotton from other countries for a lot of foreign exchange."

The proposal for the ban on the export of raw cotton, was drafted by the Ethiopian Textile Industry Development Institute (ETIDI),

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The reason for the ban, aside from the gap in supply and demand,

is the gap in the foreign exchange earned when raw cotton is exported as opposed to when value has been added to it.

According to Endalkachew Sime, secretary-general of ETGMA,"A kilogramme of raw cotton may be sold for a maximum of 2 dollars,"

" A kilogramme of garments that requires 1.2kg for its production can be sold for 15 dollars."

This is consistent with the draft Five-year Growth and Transformation Plan (GTP), which aims to increase export earnings and import substitution. At the end of the five years in 2015/16, revenues from the export of textiles are expected to reach 100 million Br, according to the GTP.

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The MoTI aim to have annual revenue of

US $500 million by 2011 (2008/09 14.5 million USD)

for which the Government must bring nearly

191 enterprises that can make the capital investment of $1.6 billion.

GOVERNMENT’S AMBITIOUS AIMS

MOTI aims to install around

48 spinning units, 31 for grey textile production, 22 in knitted sector, 53 in woven, 31 in garments 6 for finished textiles.

Export earning USD 1 billion per year

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We as Iotexian technologists and designers have greater responsibility and major role to play in providing technology support in terms of Producing quality technical manpowerHuman resource development Technology development through researchTechnology transfer

Whole nation is anxiously looking at our out put

I AM SURE WITH HARD WORK AND COLLECTIVE EFFORTS WE WILL COME WITH FLYING COLORS

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DON’T THINK WHAT NATION IS GIVING TO US THINK WHAT WE CAN GIVE TO NATION

John F Kennedy

Let us all imbibe the above message for nation building