Turkish textile factory up for auction


Just three years after it began in 2014, a large textile factory, which had planned to export all its products, is up for auction by the state owned Development Bank of Ethiopia (DBE) at a price of over a quarter of a billion birr.
Angel’s Cotton and Textile Production PLC located in Oromia Special Zone, Legedadi town 25km northeast of Addis Ababa is one of the several textile companies that have been auctioned off by state owned enterprises after they performed below expectations.
According to the auction notice that DBE released, the floor price to sell the factory, which is owned by a Turkish investor, is 258.8 million birr.
The building, which sits on 25,000 square meters of land, machines, vehicles and other assets are included in the auction.
Recently anther textile factory, Saygin Dima, located on the western outskirts of Addis Ababa at Sebeta town, Oromia region was floated for auction by the Commercial Bank of Ethiopia (CBE). The factory was established by the Ethiopian Government and Turkish investors and fully transferred to the later.
Else Addis Textile Factory is another Turkish company up for sale by DBE for 888 million birr. The factory, which began operation five years ago, did not receive any interested buyers despite being auctioned off twice.
Selen Dawa Textile Factory located at Dire Dawa also failed to settle its dept secured from CBE.
The textile industry, which has gotten significant attention from the government to boost manufacturing, has seen mixed results as some companies are doing well while others are suffering.
The government has offered tax holidays for textile and garments and Foreign Direct Investment has increased but export earnings have not grown as much as hoped.
DBE is a policy bank that finances several public-private investments in the country like commercial farms and factories