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The Head of Metehara Sugar Factory resigned this week, after serving the plant for a long time, because of disagreements that arose with regards to the reform that have been implemented.
Sources at the factory told Capital that Bizuneh Assefa, General Manager of the factory, has voluntarily given up his responsibilities. According to our sources, Bizuneh got into a dispute with high level officials of the Ethiopian Sugar Corporation, administrators of sugar industries in the country led by Abay Tsehaye, after the implementation of the reform. These sources said that the manager’s relation with employees was good, but apparently he felt dissatisfaction in the way the reform was being carried out by his superiors.
At the beginning of the current budget year, all state-owned sugar factories including Wonji, Metehara and Fincha, have implemented ‘Kaizen’ (the Japanese continuous improvement strategy) with the stated aim of expanding the capacity and production of the industries.
During the commencement phase of the reform implementation, officials of the three factories had stated that the application of the ‘kaizen’ approach will help factories maximize productivity and minimize costs.
All attempts made by Capital to contact the manager and Sugar Corporation officials to obtain further details, were unsuccessful.
Metehera , which is one of the oldest industries in the country, projects that it will generate 1.5 billion birr in revenue in the current fiscal year by increasing its production to 1.3 million quintals of sugar and 10.7 million litres of ethanol. During the previous fiscal year its revenue was 500 million birr from the sale of an estimated 930 thousand quintals of sugar and 7.6 million litres of ethanol.
Metehara has undertaken several expansions in the past few years to meet market demand, which is very high when compared to current supplies. To meet the demand, the government imported hundreds of thousands tons of sugar every year. Currently, ten other sugar factories are under construction to satisfy local demand and for export purposes.