Capital Ethiopia Newspaper

KMPF to embark on 60 mln birr expansion project

Kaliti Metal Products Factory (KMPF) is set to embark on a 60 million birr expansion project to revamp its obsolete and outdated machinery to replace it with more productive and efficient machines. Kassa Assefa, Market Research and Advertizing Senior Expert at the factory told Capital that the factory had obsolete equipment, and with  the current market economy, demands are being unmet because of the lack of supplies from the factory.
He explained the factory had envisaged a 138 million birr expansion project regarding pipeline supplies to be made in two phases, but because of lack of funds, had to minimize plans and make a smaller pipeline as well as a project for the manufacturing of EGA sheets for roofing and a purchase of a single roofing crane.
KMPF plans to solicit funds for its expansion project.  30 percent will come from the factory’s coffers and the rest from a loan it envisages to get from the state owned Commercial Bank of Ethiopia (CBE).
Kassa further said that the factory which is currently one of the eight state owned public enterprises that the government has put up for sale will have future private owners purchase it under a mutual agreement where the debts of KMPF will be jointly liable by the future owner and the government. Because the factory imports raw materials for its products, it is more expensive for them to operate. Meanwhile, expert say there are talks of iron ore deposits in Ethiopia which should alleviate some problems. 
The Privatization and Public Enterprise Supervisory Agency (PPESA) has plans to auction three other factories and four farms. These are the Abobo, Bilito Siraro, and Gojeb farms, Upper Awash Agro, Ethiopian Marble, Awash Wine, and Ethiopian coffee.
When the expansion project is completed the factory is expected to save 30 million birr annually it used to lose because of the obsolete machineries which couldn’t keep up with the ever growing demand, especially the booming construction sector.
Kaliti Metal Products Factory is a government owned enterprise that was first established in the late 1960’s by an Italian businessman, but later was nationalized by the Derg regime  in 1975 and became public property.  In 1991, when a new government was formed it became a public development enterprise.
The factory currently produces metal products such as galvanized and pre-coated EGA sheets for roofing and wall cladding, doors and windows, garbage tankers, construction form works, furniture and structural hollow sections.