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Ethiopian textile sector to import chemicals duty-free

Tigrai Online
May 05, 2012

The Ethiopian Government has allowed three overseas companies to supply chemicals to the local textile industry duty-free.

The companies are CHT-Bazema Group and Textile Colour AG, both Swiss companies, and Rose Chemicals, a Turkish firm that already owns a share in Ayka Addis Textile Factory.

The Government’s step follows a complaint by local textile industry that they are unable to import chemicals as per their requirements, as foreign companies offer chemicals at lower prices only with bulk purchases.

The Government has offered duty-free privileges to the three companies on an assurance that they will establish their factories in Ethiopia within the next five years.

The three companies will supply basic and finished chemicals to all 88 medium and large-scale textile industries in Ethiopia, as per their requirements. While seven of these textile units are currently in an expansion phase, 11 new factories are likely to be added during the fiscal year 2012-13.

Only two chemicals – sulphuric acid and caustic soda – are available locally in Ethiopia and over 15 other chemicals are imported by the domestic textile industry.

However, it will not be compulsory for the textile factories in Ethiopia to make their purchases from the three companies, which are expected to open warehouses and start their businesses in Ethiopia during the current fiscal year itself.

Source: More at Fiber2fashion

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