Capital Ethiopia Newspaper

Ethio-Turkish Textile investment begins this month

A Turkish company which is part of Saygin Group is constructing with the Ethiopian government a textile factory in  Sebeta town just outside of Addis Ababa. It is planning to begin production by the end of this month in the factory which is named Saygin Dima Textile Share Company. The Ethiopian Government has some 60 percent share in the company.
The factory is set in an area of 60,000sqm of land. So far the construction has cost around USD 22 million. They plan to produce yarn and fabric for both here and abroad. 
Turan Ahmet Turan, General Manager of SayginDima Textile Share Company says they are now in the process of training local employees. They had hoped to begin operating earlier this month but they have encountered some challenges. “Our product range is cotton, polyester, wool, acrylic, linen and textile fibers,” Turan told Capital 
He also said that this is Saygin Group’s biggest textile investment in Ethiopia as well as in Africa. They expect to export mainly to the US and Europe, taking advantage of the Africa Growth and Opportunity Act (AGOA).The African Growth and Opportunity Act (AGOA) was signed into law in the USA on May 18, 2000 as Title 1 of The Trade and Development Act of 2000. The Act offers tangible incentives for African countries to continue their efforts to open their economies and build free markets.
SayginDima hope to increase production by focusing on weaving and “end use,” product lines such as socks and sweaters. The factory construction started two years ago and right now has some 400 employees. However, when the training program is completed it is expected to have 1,000 employees. 
Yidnekachew Taye vice president of Ethiopian Textiles and Garments Association (ETGAMA), who is also the owner of Soney Garment and Textiles Factory, said the new endeavor will help alleviate the problem of supplying cloth fabrics for end use products.
“We are trying to open up a credit line whereby local garment factories can buy the products of SayginDima with ETGAMA acting as a guarantor in order to help those involved in the textile sectors from the smallest to the biggest ones,” Yidnekachew said.
ETGAMA hopes this new textile factory will help most textile factories transition from producing light textile products such as trousers and shirts to full garment dresses. The association also hopes that the new project will increase its membership from the current 80 dramatically to about 300 in a short span of time. 
Yidnekachew further said it expects a decrease in volume of cheap textile imports by up to 80 percent because local textile products are going to be cheaper as well as decrease the annual 90 to 100 million birr tax, textile companies spend on importing textile inputs.
Fekadu Ethiopia Corporate Communications Expert at Textile Industry Development Institute (TIDI) said the new factory would go a long way to achieving the GTP target of one billion dollars in textile exports by 2015.