Wednesday, 02 May 2012 |
Rose Chemicals, from Turkey and Swiss companies, CHT-Bazema and Textile Color AG, have been selected for an exclusive arrangement to supply chemicals to the textile industry in Ethiopia with a commitment to set up factories in the next five years. The Textile Industry Development Institute and the Ministry of Industry invited 15 international companies to make offers following persistent complaint from the textile sector about challenges associated with chemical imports.
After reviewing five proposals the three companies were selected as exclusive textile chemical suppliers in Ethiopia enjoying duty free privileges. The three companies were selected on criteria that included European quality certification, supply capacity and their commitment to respect the customs bonded warehouse rules of the Ethiopian Revenues and Customs Authority.
The number of suppliers was limited to three to prevent the market being saturated through too much competition according to a source with the TIDI.
The three suppliers will provide basic and finished chemicals to all 88 large and medical scale textile industries in Ethiopia as per their demands at lower prices because of their duty free privileges according to the source.
There is a demand for 10,000 tons of more than 15 types of chemicals on the market with 99% being imported according to Fasil Tadesse, President of the Ethiopian Textile and Garment Association. The availability of all chemicals from definite suppliers is something that is long needed by the sector he said.
The foreign suppliers will affect the business of local importers but the manufacturing sector is a preferred sector according to an official with TIDI.
The three new suppliers will be expected to establish a warehouse and obtain a customs bonded warehouse license from the customs authority which requires building plans, insurance contract and a document proving the necessary is equipped with storage and safety facilities.
Rose Chemicals has set up its warehouse on the compound of Turkish Textile manufacturer Ayka.
Source: Addis Fortune
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