A Chinese company is establishing a textile industrial zone in Addis Ababa, Ethiopia. Zhejiang Jinda Flax is a subsidiary of Chinese Kingdom Holdings and produces textile decoration fabrics such as weave fabrics, yarn decorated fabrics and calico printing fabrics, which are widely applied to clothing sofas, curtains and bed appliances.
The company and the Ethiopian government have agreed to work jointly for the establishment, development and construction of the Kingdom Linen Textile Industrial Zone in Ethiopia. Before June 2015, Zhejiang will commence the construction of phase one of the industrial zone project. In addition, the Chinese company will train 50 Ethiopians in industrial park production facilities.
Ethiopia is home to over 230 textile and garment industries with 20 training institutes, employing about 37 per cent of the country’s public sector work force. Eleven Chinese companies are already in Ethiopia and involved in the manufacturing of leather and leather products, textile and garments.
China is the third-largest foreign investor in Ethiopia by direct investment volume. As margins get tighter at home, Chinese companies are looking further afield, and many are settling in Ethiopia as an attractive alternative for their factories and plants. Chinese companies are assembling goods in Ethiopia to ship back to China, which is more profitable than producing in China today.