The Government of Ethiopia has provided 100 hectares of land in the Tigray region in Mekele city to Velocity Apparel Plc for construction of a modern garment factory with an initial investment of US$ 150 million, Ethiopian News Agency reported.
The State Minister of Industry Tadese Haile said that project is important for Ethiopia, as it has major economic benefits.
The President of the Tigray Regional State, Abay Woldu, said Tigray has a huge investment potential and a developed infrastructure, making it suitable for investments in industries and manufacturing.
The CEO of Velocity Apparel, Siharz Sinaha, said construction for the project will begin this month and it will take about five years to complete.
Velocity Apparel has also received a loan from the Development Bank of Ethiopia for the establishment of the garment manufacturing factory. The company, which has plants in Egypt, the United Arab Emirates and Jordan, was established in 1990 and had a turnover of US$ 100 million in 2013 and supplies its products to well-known international companies like Gap, Target and Walmart.
At present, Ethiopian textile and garment industry comprises of 115 factories that together employ 40,000 people.
Under the Growth and Transformation Plan (GTP) of the Ethiopian Government, the target for textile and garment exports is set at $1 billion by 2015. In comparison, Ethiopian textile and apparel exports stood at $99 million in last fiscal year.
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