By Birhanu Fikade |
Following the recent visit of Prime Minister Hailemariam Dessalegn, a Chinese firm, Indochine, has finalized deals to lease two manufacturing sheds with 11,000 and five thousand sq.m. areas at the Hawassa Industrial Park which currently is under construction, The Reporter has learned.
Indochine, a renowned Chinese textile firm mostly engaged in souring activities has wired the down payment of USD 200 thousand via the National Bank of Ethiopia and currently the firm has acquired 11,000sqm. Anila Kularatne, who currently undertakes the establishment of the Indochine International, a subsidiary of the China based Indochine Apparel Ltd, told The Reporter that the company has deposited the minimum capital required from foreign investors.
According to Kularatne, the company will be involved in manufacturing garments and will install plants for laundry, denims and the like. Though Kularatne opted not to disclose further details before final agreements have been made said the plants would need some two to three thousand workers at the factory.
Sileshi Lemma, director of Textile Industries Development Institute (TIDI) confirmed that Indochine has finalized investment procedures and currently it is waiting to have a go for the additional five thousand industrial shed approved by the government.
Hawassa industrial park is expected to be completed and commence operations in late April. According to the information posted on the website of the Industrial Parks Development Corporation, 100 hectares plot of land will be developed during phase one and serviced land will be available by the end of 2015. During mid-2016, pre-erected factory sheds will be made available for investors.
Indochine is primarily a sourcing company but it has ten percent of manufacturing base in Cambodia and Vietnam next to China.
In a related news, Kanoria Africa Textiles PLC which has set up denim plant at Bishoftu is to be inaugurated today. Jay Soyantar, vice president of marketing at Kanoria Africa told The Reporter that the company has invested some 45 million dollars. The annual production of Kanoria Africa is estimated to be at two million meters per year.
Soyantar mentioned some of the customers waiting for the company’s products. “For example, PVH, VF Corporation and JC Penny from America are engaging us at the moment”, he said.
VF Corporation is a renowned US brand operator mainly outdoor and action sports, jeanswear, image wear, sportswear and contemporary brands. The company controls 55 percent of the US backpack market with the Jansport, Eastpak, and Timberland and North Face brands.
PVH Corp. is the other American clothing company which owns brands such as Tommy Hilfiger, Calvin Klein, Van Heusen, IZOD, Arrow, and licenses brands such as Geoffrey Beene, BCBG Max Azria, Chaps, Sean John, Kenneth Cole New York, JOE Joseph Abboud and MICHAEL Michael Kors. In addition to that JC Penny runs chain of stores across the US.
Source: The Reporter
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