Power failure,shortage of raw material in leather sub-sector seek gov’t due attention

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Journalists drawn from the private and government media visited various eastern industries zone in Midjo, Adama and Dire Dawa in a field visit organized by Government Communication Affairs Bureau in collaboration with Industry Minister lasted for a week.

In the field visit selected factories hasve been visited by the journalists. Thus, journalists could witnessed the activities of the factories. Of which, the Modjo Tannery Factory and Else Textile Industrial Development Plc.

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The Modjo Tannery Factory

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Ethiopia is a country highly endowed with a large number of livestock population. This high volume and diversified type of cattle population makes the country one of the best places in the world to engage in tannery. Ethiopia’s export earnings from the sector has been growing in double digits for the last five years. Modjo tannery factory is one of the main actors in this sector.

In the field visit, the Modjo Tannery Factory Share Company said that there has to be due attention to solve foreign problems in foreign exchange, raw materials supply, illegal trade (contraband) in the tannery sector at the press conference at the compound held here recently.

Factory General Manager Redwan Bedada told journalists that problems in foreign exchange problems in foreign exchange, lack of quality raw materials (leather), illegal trade are currently the major constraints too the sector not to achieve the Growth and Transformation Plan (GTP) goals.

He noted that they are working with the governmental institutions in order to solve the problems and sustain the development in the sector.

He said that the country’s export was more focused on the raw leather supply and now has been starting finished leather to the foreign market, but the country has less experience that could be another threat to the sector.

Even though, the company has working with concerned governmental institutions to solve the problems mentioned, Redwan further noted that the government is strengthening its support for the sector to achieve the goals of GTP.

To make the sector development sustainable, factories in the sector need to work together at the national level, he added.

Redwan pointed out that Modjo Tannery Factory has a capability to produce 8,400 hides and skin but now forced produce 6,000 because of lack of raw material supply.

He further pointed out that many foreign investors become engaged in the sector and the government need to support local investors to be competitive with them.

It was in 1972 Modjo Tannery Factory established to produce crocodile leather, currently the factory has exporting 85 per cent of its finished skin and hides product.

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Else Addis Industrial Development Plc

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It is obvious that clothing and textiles sector is a fully global industry, with multinational companies continuously searching the world for new sources of supply. The country has indigenous raw cotton and the potential to produce other natural fibres plus an integrated textile supply chain, albeit in need of modernization and expansion. This means that the industry, while still in infancy, has enormous potential, both for exports and domestic consumption.

Similarly, Else Addis Industrial Development Plc also comlain a little bit about the raw material supply and power shading. The company said that there are problems of quality raw materials supply and energy in the investment in the country.

Briefing journalists at the press conference held at the factory head office organized by Government Communication Affairs Office here Monday, Factory Manager Nevzat Kerim Aydin said they are problems facing on the area of energy and raw materials in their production process.

He said that actually there is a potential of raw materials—cotton, labour and geographical option in this country that make them to continue their investment but there is also problems they are facing low quality and quantity of cotton.

Thus, in order to solve the problem they have discussed with government and the government supply them a land around Omo River to start their plantation there which costs 200 million USD and have their own input—cotton within two years, he added.

As to him, they already developed 400,000 hectares of land and would have a cotton production equal with total production of the country within five years.

Nevzat Kerim Aydin told journalists that apart from textile factory they would have different options of investment here in Ethiopia.

Regarding to strengthen exporting production in the country, he said that there has to be high quality of products then there would be a potential of exporting production.

He also said that apart from energy and raw materials, skilled work force is very important to have quality and cheap products that helps become competitive in the global market.

He pointed out that there is a market around Africa who can be our products user but they prefer Europe or America market because of the price offer there and for future they plan also involve in the Africa market.

He further pointed out that they are not using chemicals in the production process that affected the environment except the cotton dust which has no environmental affection.

Pertaining to the societal activity, he noted that the company creates a job opportunity as most of the workers are fresh graduates and they acquire their work of experience and of which 80 per cent of workers are women so this makes the company good in the community service.

He further noted that the company’s infrastructural development in and around its plants positively impacts the local community and contributes to its overall well-being.

Else Addis started investment in Ethiopia around in 2009. Their investment has two phases and currently they are operating phase one which covers 46, 000 square meter. They have 1,500 workers of which 95 per cent of workers are Ethiopian.

Now they do have 100, 500 tons of yarns production monthly and plan to increase their fabric total of textile production from 750, 000 metre per month to 1 million 700.

Else Addis Industrial Development P.L.C is a fully vertically integrated textile factory located in Nathret-Adama city on the land of 200, 000 m2 which has the covered area 120, 000 m2.

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