Welcome []...Number of Operational Factories as Per to the Value Chain S. No. Area of Operation...
Transcript of Welcome []...Number of Operational Factories as Per to the Value Chain S. No. Area of Operation...
Welcome
to
Ethiopian Textile Industry Development Institute
TEXTILE INDUSTRY
DEVELOPMENT IN ETHIOPIA
An Overview of Facts and Opportunities
Ethiopian Textile Industry Development Institute (ETIDI)
October, 2014
The Beginning of Modernizing the Sector The first integrated mill was established in 1939 in Dire Dawa
Town by the name Dire Dawa Textile Factory, which marked
the beginning of textile industrialization.
A brief History
Textile sub-sector has long history of tradition in Ethiopian
beginning from the old times.
•People make clothes from the cotton supplied by small holder farmers
•This traditional cottage industry is inherited and continues up to now
•Making an important contribution to textile requirements.
CURRENT STATUS OF MEDIUM & LARGE LEVEL
TEXTILE INDUSTRIES
o Textile Products contributed 1.6% to the GDP (nominal) and accounted 12.4% of the Industrial output by value terms in 2010.
Annual Production capacity of Textile and Apparel Industry
102 thousands tons of yarn
207 million meter woven fabric
50 million kg of knitted fabric
63 million pcs of knitted garment and
28 million pcs of woven garment
Employed more than 48,000 workers
For the last eight years, the export performance of the sector has show an increasing trend, on average 50% per annum.
The country gains USD 111.3 Million in the last fiscal year
Number of Operational Factories as Per to the Value Chain
S. No.
Area of Operation
Number of Factories
1 Ginning 18
2 Integrated Textile Mills 20
3 Spinning 5
4 Weaving and/or Knitting 12
5 Handloom (medium size) 6
6 Dyeing and Printing 3
7 Blanket Factory 6
8 Garment Factory(knitted/woven)
60
Total 130
In the country now a days from 10s to 20s on open end
and up to 60s count ring frame have been produced with
the available technology
Total Spindle available Installed
capacity(Ton/day) Ring Frame Open End
288480 14480 260
Type of product, product range and production capacity
The Existing Technology in Spinning
Manufacturers Machines
TRUTZSCHLER Blow Room, Card, Draw Frame
ZINSER Roving and Ring frame
SCHLAFHORST Open end and winding
ORLINKON
SCHLAFHORST
a combination of zinser and
schlafhorst for roving ring open
end and winding
MURATEC Automatic Winding
RIETER Blow room up to ring and open
end
LUWA Humidification Plant
MARZOLIE From Carding up to Ring Frame
Total
Type Of Machine Make Available Number
Of Machines
Shuttle loom Hutenslay 24
Rapier weaving Somet, Picanol,dornier,
vamatex, Versamat
1,199
Air jet weaving Picanol, Dornier 211
Water jet Tsuelakoma 190
Projectile weaving Sulzer 24
Handloom ethiopia 143
Total 1791
The Existing Technology in Weaving
Type Of Machine Make Available Number
Of Machines
Single Jersey
knitting machine
Pailung, Pilotelli, Mayer,
Monarch, Weliknit, Terrot,
Orizio, Protti
175
Double jersey
knitting machine
Fukuham, Monarch, Mayer,
Terrot, Pi-lung, Norah
65
Flat bed knitting
machine
Shima-sika, Protti, Norah
28
Socks knitting
machine
536
Jacquard knitting
machine
Pailung 9
Warp knitting Mayer & ci 6
Total 813
The Existing Technology in Knitting
Type Of Machine Make Year Of Manufacture
Singing machine Ostoffsenge
Reggiani
1982-2004
Scouring-Bleaching
machine
Textim Gollera
1972-1983
Mercerizing machine Textima Gollera
Comerio
1964-1982
Continuous washing machine
Erbateck Gollera
1972-2009
Yarn dyeing machine Dilmenler
Longclose
Obeim
Galvani
Obermayer
1972-2009
The Existing Technology in Finishing
Type Of Machine Make Year Of
Manufacture
Fabric Dyeing machine Thies
Fongs
Beneks
Brazoli
Dilmenler
Sclavo
Benninger
Henerikson
Monfort
1959-2009
Drying machine Longlose
Galvani
Fongs
Omez
Goller
Unitechsantaluzia
1965-1997
The Existing Technology in Finishing
Type Of Machine Make Year Of
Manufacture
Stenter Bruckner
Monforts
Textima
1969-2004
Calendaring machine
Poltecks
Monforts
Comerioercole
1969-2008
Sanforizing/compactingmachine
Bruckner
Santeks
Tube-tex
1975-1998
Decatizing machine Speratto SPA
Beilla Shrunk
1987-2004
The Existing Technology in Finishing
Type Of Machine Make Year Of
Manufacture
Raising m/c Lafer 1987-2004
Shearing m/c Lafer 1987-2004
Printing machine Reggiani
Rijiecon
1970-2009
Curing machine salwade 1989-2009
Quality control machine Guvencelik
Simat
1964-2004
Role winding machine Menschner
Textima
1962-2007
The Existing Technology in Finishing
N
o
Name of
Company
Investor’s
Citizenship
Product
Type Status
1 Karl International India Garment Rented Shade in Bole Lemi Industry Zone and will start operation
soon
2 Gulf Textile Pakistan Garment Rented Shade in Bole Lemi Industry Zone and will start
operation soon
3 Velocity India Garment Undergoing process to start project in Mekele
4 Experience
Clothing
Pakistan Garment Undergoing process to get land in Addis Ababa
5 Dima Faiweiwei Ethio-China Spinning Operational
6 Shin TS Com Korea Garment Rented Shades in Bole Lemi Phase 2
7 Jay Jay mills India Garment Rented Shades in Bole Lemi Phase 2
8 SVP India Spinning Finalizing bank process and will soon start construction
9 Green Valley India Spinning Will soon start construction
10 New wide Garment Taiwan Garment Rented Shades in Bole Lemi Phase 2
11 Shin TS Korea Garment Rented Shades in Bole Lemi Phase 2
12 Atraco Garment Rented Shades in Bole Lemi Phase 2
13 Myungsung China Garment Rented Shades in Bole Lemi Phase 2
14 Akper Turkey Integrated Taken land in Ejere, Oromia and starting bank process
Projects Under Investment Process
OPPORTUNITIES
Textile Industry Considered as number one priority sector by the Government‘s Industrial Development Strategy.
Availability of more than 3.2 million hectare of land and suitable climate for cotton cultivation, but only some 6.9 % utilized so far.
Huge potential for organic cotton cultivation.
Ethiopia, known as the water tower of Africa, Provides one of the Cheapest environmentally friendly hydroelectric power supplies in the world (5 US cents/per kwh).
Low cost and easily trainable skilled labor force (wages 40USD / a month), less than Africa’s average.
OPPORTUNITIES CON’T
• Skilled labor in the sector is increasing rapidly as a result of fast growing
education and training institutions in Textile Technology; two institutes, a
couple of textile Engineering departments in different Universities and a lot
of hundreds of TVET Schools and private training institutions.
• Quota and duty free market access to the US and EU as well as COMESA
markets. In addition Ethiopia signed with more than 16 bilateral trade
agreement, which include China, India, Turkey and Russia.
• Ethiopia offers one of the largest domestic markets in Africa, given its
population size and rapid economic growth.
…OPPORTUNITIES CON’T
• Provision of infrastructure and service furnished (specialized) economic
zones. For e.g Kombolcha Textile Cluster, Dire Dawa Industrial Zone, Hawassa Industrial Zone, Gondar Industrial Zone, Mekele Industrial Zone, Jimma Industrial Zone and Addis Ababa Industrial Zone (s).
• Easy access to land on a lease fee ranging from 0 to 3USD/m2 in regional states for a lease period of 60-80 years depending on the specific investment location.
• English language is widely used in the business sector as it is the medium of instruction in secondary and tertiary schools of the country.
INCENTIVES
Aim: To encourage investment and promote the inflow of foreign capital and technology into Ethiopia (both domestic and foreign).
1. Investment Incentives
Tax holidays:-
100% Duty free importation of new or used machineries, equipments,
construction materials and vehicles (used as capital goods for the investment) as far as it is not producible locally in Ethiopia.
Duty free importation of spare part of 100% of capital investment for the first 5 years of operation.
Ownership Transfer of invested capital goods to third party enjoying similar privilege.
It is possible to hire international expatriates free from income tax as far as they stay for no more than two years.
Reconciliation of VAT for materials purchased locally during the project period is possible if declared in 6 months time.
2. Financial Incentives
Development Bank of Ethiopia (DBE) extends a 70% loan against 30% equity contribution in cash by the investor for Brand New Establishments.
DBE’s extends loan with an interest rate of 8.5% and grace period of 5
years. Co-financing, loan buyout, working capital and international loan
repayments out of Ethiopia are some of the services DBE and many of the domestic banks extend to the private sector.
… INCENTIVES CON’T
Financial Incentives:-
A one year non-collateral working capital loan scheme called Export Guarantee Scheme with 1% interest is allocated in DBE to help exporters manage their cash flow constraints. Long term non-collateral loans are also available in many banks on different loan modalities depending on export performances.
Remittance of profit and dividends out of Ethiopia is possible.
State owned logistics enterprises (Ethiopian Shipping Line, Ethiopian Airline, Dry Port Services and Maritime) provide their services at Break-Even Point(BEP).
Training of operators is given free of fee.
Above all, Ethiopia has relatively regionally stable socio-political and economic system & also Ethiopian labor law is in conformity with ILO standards.
… INCENTIVES CON’T
3. Operation incentives
Tax holidays:-
Income Tax Holiday depending on export performance.
Exemptions of Customs Tax and Duties on raw material through a set of incentive schemes called duty draw back, voucher and bonded manufacturing warehouse.
Exemption from customs duty of locally purchased raw materials on fast refund bases.
ETHIOPIAN TEXTILE INDUSTRY DEVELOPMENT INSTITUTE (ETIDI)
The Institute That Unlocks the Future of
Ethiopian Textile Industry
THE ROLE OF ETIDI
Objective:- Enabling the Ethiopian textile industry to be
competent in the global market through investment
support, production capacity building and marketing
support.
Mission :- Enabling the Ethiopian textile industry
competent in the global market by providing sustained
investment expansion, consultancy, training research and
development laboratory and marketing support and
services.
Vision :- We aspire to be a world-class institute that
enables the Ethiopian textile industry competitive in the
global market.
ETIDI is organized along the textile value Chain
SUPPORTS AND SERVICES CON’T
Capacity building(production) Training, benchmark implementation, laboratory testing and
inspection, R & D, Certification of quality standards etc.
Technical consultancy and supports by availing local and foreign experts
Support in quality assurance and certification
Market supports and Services Marketing capacity building ( training and consultation)
Logistics facilitation (transport, customs, finance, port, utility etc) value chain- input and output linkages.
Inputs facilitation (Sourcing and Supply chain)
Facilitate input supply linkage with local raw material producers and market linkage with foreign buyers
FACILITIES OF ETIDI
Fully equipped training facilities
Model spinning factory (under progress)
Model weaving and knitting factory (under progress)
Finishing facilities (under progress)
Design and Garment training classes and facilities
Modern and certified chemical and physical laboratories
Fully equipped library.
Since current machines are mostly
fitted with sophisticated electronic
devices not maintenance friendly
Problem of availability service center
Availability spare part
MAIN CHALLENGES