ADDIS ABABA, Jan. 17 (Xinhua) -- China Engineering Corporation (CEC) has signed an agreement with Yekatit Pulp and Paper on Tuesday to construct the biggest Pulp and Paper Mill in Ethiopia.
Yekatit Pulp and Paper, a sister company of Yekatit Paper Converting Plc, a pioneer in the Ethiopian paper industry since 1997, has planned to set up the biggest mill in the east African country with an investment budget of over 1.9 billion birr (over 80 million U.S. dollars).
The Chinese construction giant, CEC, has signed a turnkey agreement to complete and handover the project, which will rest on 50,000 square meters of land, within 18 months of period.
China Engineering Corporation has been found to have the required technological, organizational and financial capabilities to plan and execute this massive industrial project successfully as compared to global bidders participated in the bid process, according to Yonas Alemu, Yekatit Pulp and Paper Project Director.
Upon completion, the project will be the biggest Pulp and Paper Mill in the country, not only in its production capacity but also in its engineering and operational design features as well as in its technology, as it deploys the latest state of the art technology in the pulp and paper projects in recent history.
According to Yonas, the project, which is expected to start operation by mid-2019, would create 9,000 direct and indirect job opportunities.
Alemu Sime, State Minister of industry, also lauded the project, indicating that the project would help the east African country by substituting paper and pulp products which otherwise would be imported.
The planned export operation is expected to generate over 10 million dollars annually from export of final products and will help to save an estimated 15.7 million dollars annually.
The mill, once operational, will produce and convert over 70,000 tons of industrial packaging paper boxes as well as 15,000 tons of tissue paper pulp to produce and convert toilet papers, table napkins and kitchen towels to be marketed both in the local market and export a huge volume of its capacity.
Wen Chaohui, CEC General Manager, signing the agreement on Tuesday, said that his company will try its best to finalize the project successfully and on time.
Yekatit pulp and paper has also signed turnkey technology consultancy agreement with C2C Paper Projects LLC, an Indian company to undertake the supervision of the project engineering, procurement, installation and commissioning works on behalf of the project promoters and its sponsors.