Ethio-Engineering Group unveiled plans to construct a modern steel factory. The project is slated to commence in Nekemte city during the current fiscal year.
The factory’s state-of-the-art equipment and technology, imported from Italy, have already arrived in the country. The facility will comprise three distinct production units dedicated to transforming iron ore into various steel products. With a projected investment of between USD 76 and 87 million, the factory is expected to be operational within a year of construction commencement.
Currently, Ethiopia imports even the most basic steel components, such as bolts. The new factory, which will be the largest of its kind in the country, aims to address this critical gap by producing a wide range of steel products domestically. The strategic location in Nekemte was influenced by the presence of iron ore deposits in western Ethiopia.
Upon completion, the factory is anticipated to create hundreds of jobs and generate annual revenue of 90 million dollars. This substantial output is expected to significantly curtail Ethiopia’s reliance on steel imports.
Ethio Engineering Group is also committed to reviving an idle iron factory in Bishoftu. The company envisions a future where Ethiopia not only meets its domestic steel demand but also becomes a net exporter of steel products.
Source: Addis Zemen
