A modern leather processing factory built in Sululta town of Oromia State at a cost of 27 million USD by China- Africa Overseas Leather Products S.C was inaugurated.

The factory, built on 80,000 square meters of land on the outskirts of Addis Ababa City, has a capacity of producing 450 million pieces of processed leather per year, General Manager of the company, He Mingliang said during the inaugural of the factory.

He said the factory employs 500 local people.

The General Manager also announces plan that the factory would be expanded if the condition is favorable by injecting 25 million USD. This will enable it to produce the stated products valued at 120 million USD.

This second phase project will also enable the plant to use 2000-2500 skins per day.

He said the factory is environmentally friendly.

Speaking on his part, State Minister of Trade and Industry, Tadesse Haile said the leather and leather products industry is one of the top priority sector identified by the Industrialization Strategy of the country.

He said the country’s five year Growth and Transformation Plan (GTP) mainly focuses on adding value on raw local materials.

Tadesse said one of the objectives of the GTP is to double the contribution of industry sector to the GDP after five years by attaining a 20 per cent growth annually.

As a result the plan is expected to strengthen the global competitiveness of the country’s leather and leather products industries thereby earn more foreign exchange.

Vise President of China Development Bank (CDB), Xin Yiren on his part said CDB and CADFund have supported and would continue to support Chinese enterprises to invest in Ethiopia.

CDB committed to promote Sino-African trade and economic cooperation and encourage more Chinese to invest in Africa, he said.

ENA