In a significant move, the Selecta Group has announced the relocation of its URC production from its Kunzila site in northern Ethiopia to its main facilities in Kenya and Uganda. This decision comes as a response to the ongoing political instability and uncertain military environment in Ethiopia, which have posed major logistical challenges and safety concerns for employees.
The relocation is set to occur at the end of the current B&B season, ensuring that all customers continue to receive supplies without interruption. Selecta has expanded production capacities at its well-established locations in Kenya and Uganda to maintain full delivery capability, particularly during the Poinsettia sales season. The Pelargoniums and Mandevilla previously produced in Ethiopia will be grown in additional areas around Lake Naivasha in Kenya for the next season.
Per Ansgar Klemm, CEO of Selecta One, expressed the difficulty of this decision, stating, “We have to take a painful step: after only a few years of intensive development work, we are forced to close our production site in Kunzila, Ethiopia.” Despite significant investment and efforts to build up know-how, the political instability and tense military environment have proven insurmountable hurdles. The safety of employees could not be guaranteed under the current conditions, leading to the closure of the site.”
“Despite our best efforts, especially in the last two years, during which we have literally fought our way through all kinds of difficulties, our options are not sufficient to keep the site running under these circumstances in the long term. It is not possible to implement an economically necessary expansion of operations, nor is it possible to work sustainably under these conditions. At the same time, this means that many local colleagues who put their heart and soul into their work now face an economically uncertain future,” the CEO added in a Linkdin post.
The CEO further stated that this decision will result in over 1,000 job losses, affecting around 10,000 people directly and indirectly in the Kunzila area. Klemm emphasized the impact on local communities, noting that the company was an economic lifeline for many families. He added that despite efforts to navigate through difficulties, the conditions have made it unsustainable to continue operations in Ethiopia.
According to a statement Selecta’s teams in Kenya and Uganda have been strengthened to ensure seamless supply chain continuity for all customers. However, the closure of the Ethiopian site marks a bitter realization of the economic uncertainty faced by those left behind.
The relocation underscores the challenges faced by businesses operating in regions with political instability and highlights the importance of stable conditions for economic development. As Selecta moves forward with its operations in Kenya and Uganda, it stated that it remains hopeful for better times when it might be able to rebuild its presence in Ethiopia.
Headquartered in Switzerland, the Selecta one Group is a leading global breeder, grower and marketer of innovative ornamental plants. The breeding activities comprise bedding and balcony plants, houseplants, perennials and cut flowers. With an annual turnover of 1.4 billion Euros Selecta has production sites and sales companies in Europe, Africa, Asia and America.
