Afro FM 105.3: Indian firm to build sugar mill in Ethiopia

Indian firm to build sugar mill in Ethiopia
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Henok  on 21/07/2011 06:10:00
 
Razia Agro Industry plans to set up the sugar mill in the East Wollega zone of
the Oromia Regional State in Ethiopia. A company official told a local newspaper
that the Indian firm has secured 4,000 hectares of land for the sugarcane
plantation and the construction of the mill. The official said they have been
cleaning the land and developing the farm.  Razia Agro Industry has a registered
capital of 131 million birr. A senior executive of the company said the group
would start constructing the factory next year. The mill will have an installed
capacity of producing 1,200 tonnes of sugar per day. Already there are three
state-owned factories: Wonji, Metehara and Finchaa. The government is also
building the largest sugar mill in Ethiopia in Tendaho, in Afar state, at a cost
of 725 million dollars with a credit facility provided by the Indian government.
India has given a 640 million dollars loan for the Tendaho sugar project. The
Ethiopian government hopes to boost sugar production to 2.5 million tonnes from
the current 300,000 tonnes within five years.  Razia's sister company, Sainik
Potash, has been working on a potash development project in the Afar Regional
State since 2007. Sainik Potash is a subsidiary of Sainik Coal, a giant coal
manufacturing company in India. The investment group, Sainik, is planning to
establish another new company which will be engaged in marble production in
Ethiopia. (WIC)