A contract has been signed between Yekatit Pulp and paper, a sister company of yekatit paper converting plc, and China CEC corporation to kick start the construction and installation of Yekatit pulp and paper factory. The Chinese company will be involved in the design, installation and commissioning of the pulp and paper factory located in Gelan subcity, Oromia region. Occupying 50,000 square kilometers of land and with a cost of over 1.9 Billion birr (over 80 million USD), this project will become the biggest pulp and paper mill in Ethiopia once completed. The pulp and Paper factory will produce (annually) 70,000 tons of paper for packaging purposes and 15,000 tons of tissue paper pulp for the production of toilet papers, table napkins and kitchen towels.
The current demand of Ethiopia for paper products will rise from the 200,000 tons per year to 400,000 tons per year within the next five years. To this end, the government of Ethiopia will pump an equivalent of 2.6 billion ETB or 130 million USD into this industry.
The turnkey project is divided into three phases, according to the project director Ato Yonas Alemu. The first phase sees the establishment of a paper facility with a capacity of producing 210 tons of rolled paper per day. In the second phase, a plant with a capacity of producing 45 tons of soft paper per day will be put into place. This will in turn aid to produce the annual demand of 12,000 tons of exercise books that are currently being imported to Ethiopia. The final stage of the project will establish a pulp production facility.
The future Yekatit Pulp and Paper factory will export paper items worth more than 10 million USD and in the process substitute for imported paper products which are worth more than 15 million USD. This will supplant 70% of imported paper products. 38% of the civil work of the plant has been completed and CEC china engineering corporation is expected to complete and hand over the project within 24 months after the date of the first down payment. Below is the bird view schematic diagram of the Yekatit pulp and paper project site.