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Acazis Agro Industry Private Limited Company Ethiopia, a 100 percent owned subsidiary of Acazis AG, Rosenheim, Germany signed a contract with an Ethiopian Company K & S Plc, to operate the Flora Acazis Agro Industry Plc Ethiopia oil factory around Fechatu area of Eastern Ethiopia. The contract was inked on November 30th .

Francois Achour General Manager of Acazis Agro Industry Plc said that the raw materials for the oil factory are expected to come from a 6,000 hectares of ground nut used in intercropping method with castor plants located in the East and West Hararghe zones of the Oromia regional state with an ability to produce 25,000 tons of ground nuts yearly to be supplied to the oil factory. He further said his company is growing the ground nut seeds to supply local industries, while the seeds from castor plants are for export, since its oil is too toxic for production as edible oil.  So currently it’s planned to  be exported to the Asian giants of China and India.
“We’re launching the venture on a 50/50 percent share profit,” Francois said adding that the oil factory started test run commissioning in October this year, and is waiting this month for qualification go ahead from the pertinent authorities for production. Its  initial focus is on local market, to be diversified to exports at a later stage, while increasing its production capacity.
The factory’s products will consist of edible oil and a by product called cake, that is to be used as animal feed. Although the factory currently plans to produce edible oil from ground nuts if there is a need it plans to produce edible oil from sesames, soya beans and corns.
Francois also said the factory has an environmental and energy saving scheme, of using the shells of the ground nuts to generate steam needed in the production process, thereby minimizing environmental damage and saving power.
Once fully operational the oil factory is projected to produce 50,000 litres of edible oil daily and 60 tons of animal feed, with revenue of 3 million birr daily expected.
It is also expected to become one of the biggest peanut oil producers in the country next to Hamaressa Edible Oil SC, the state owned oil factory located just outside Harar. Currently, Hamaressa is the single largest state owned peanut oil producer factory in the country. The area surrounding Harar is known for its abundant supply of ground nuts.
The oil mill factory was constructed at a cost of close to USD 8 million. In addition Swiss and German investor invested millions of dollars to renovate and refit the oil mill, and currently employs around 65 employees under its wing.
The Ethiopian born Saudi business tycoon, Sheikh Mohamed Hussen Al Amoudi has also announced that his agro industry company located in Gambela regional state will soon commence peanut oil production.
Currently, palm oil imported by the government is the major supply of edible oil for the public. Due to lack of sufficient local production compared with the huge demand, the food oil market has not been tranquil over the last few years.
Acazis AG based in Gilching near Munich, Germany, operates in the cultivation and use of castor plants, the production of edible oil, the provision of any related services and the acquisition and management of companies and shareholdings in related companies as well as the carrying out of Executive Board functions.