Euro Cable plc, a pioneer in wire manufacturing in Ethiopia, inaugurates a new expansion that will triple its production by introducing new product lines.
The new factory located in the southeast outskirts of Addis Ababa around Gelan Industrial Area was officially inaugurated in the presence of federal and regional government officials.
Simge Yuksel, Business Development Manager at Demes Cable, who is one of the two partners that formed Euro Cable and is based in Turkey, said that the facility has a covered area of 10,500 square meters in a compound of 20,000 square meters.
Euro Cable PLC, a joint Ethio-Turkish venture, was the first private enterprise to start manufacturing electrical cables in Ethiopia. The venture began with a starting capital of 55 million USD ten years ago and this latest major expansion will bring the estimated market value of its investments to over 1.2 billion USD, according to the Turkish partner representative.
Saad Ibrahim, General Manager of Euro Cable, told Capital that his company Glorious plc, the well know electronic and equipment supplying company in Ethiopia, has been importing Demes products from Turkey for several years before extending their relationship.
“Even though Demes’ products are high quality with a good reputation, fake products imported by unscrupulous businesspeople have affected the local market, our business and even international clients who produce and supply the product up to standards,” he said, explaining how the two partners teamed up to establish the industry in Ethiopia.
“The fake products are very cheap but very dangerous since they are electric cables. Their reduced price has affected our business and such kind of products are still imported,” Saad added.
In his speech, Saad stressed that the government has to work strongly to stop the importation of fake and dangerous electric cables. He also said that his company is working with relevant government bodies to tackle this challenge.
Teka Gebreyesus, State Minister of Trade and Industry, told Capital that this type of partnership is a good lesson for Ethiopian investors and the business community. It demonstrates a way that business can be undertaken jointly with a strong capacity. “Working together in Ethiopia is not common but if it is expanded the private sector will be more capable, intelligent and profitable,” he said.
“This partnership is also good experience for importers. The government wants the private sector to start producing products currently being imported,” he added. The factory soon will expand again so they can make additional things to export to regional markets.
“We have a plan to produce high and medium voltage cables and even satellite and fiber optics,” Saad explained.
In his opening speech the General Manager expressed his company’s desire that the Oromia region provide an additional plot at the same area for the massive expansion.
The expansion which was done without a bank loan has also increased the number of employees to 200 that was about 30 when it started operation ten years ago. Demes Cable has been in the Turkish cable sector for over 30 years.