Chinese firm Kingdom Linen Plc opens new US$70m textile factory in Ethiopia

ETHIOPIA – Kingdom (Ethiopia) Linen Plc, one of Chinese firms operating in Ethiopia has opened a new factory worth US$70 million in Adama, Oromia Regional State.

The yarn factory is expected to start with trial operations within the next two months before embarking on full operations.

Once fully operational, the factory is expected to process 5,000 tonnes of linen yearn annually, generating an estimated US$45 million dollars in revenue.

The factory is part of an integrated textile processing plant which Kingdom (Ethiopia) Linen Plc plans to complete in three phases.

IT Electronics Eleventh Design & Research Institute Scientific & Technological Engineering Corporation Limited is the contractor for the project. This company engages in engineering consultation, design and general contracting.

The supervisors of the construction of the plant will be, a Chinese company specialised in construction project supervision for industrial assets, Shanghai TJU Engineering Service Co. Ltd.

Constructions at the facility began mid-2018 and were completed in July, this year.

The company imported equipment from China and Italy to be used in the in the processing facility.

Completion of the other two phases would cost the Chinese textile producer an additional US$130 million.

The two phases will, however, increase the total production capacity from the initial 5,000 tonnes to 20,0000 tonnes annually.

The company will also employ an estimated 4,5000 people.

According to Chang Zhang, the Deputy General Manager of Kingdom (Ethiopia) linen Plc, the company’s existing clients in Italy, India, and Portugal will serve as a ready market for its exports.

Abera Kechi (PhD), Director at Bahir Dar University, believes that besides transferring technological advancement and creating job opportunities, it will generate forex for the country and increase the competency of Ethiopian products in the international market.

Kingdom Linen plc was founded in 1999 and currently has four textile production facilities and an organic flax raw material production based in china.

Kingdom Ethiopia will join the 1,345 textile, apparel, garment and leather industry projects registered by the Ethiopian Investment Commission and the regional investment bureaus

It was listed in the Hong Kong Stock exchange in 2006.

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