Repi Soap and Detergent S.C. signed a joint venture agreement with Wilmar International Limited for the purpose of upgrading the Repi manufacturing facility as well as building a new integrated manufacturing complex in the Oromia State, Sebeta town. Repi is a sister company of AL-SAM Plc and Wilmar is a Singaporean agribusiness group.
According to the Board Chairman of AL-SAM Group, Sabir Argaw, the project is expected to be finalized in 14 months time. He added after the construction of the new facility is over, Repi will relocate itself from Addis Ababa to Sebeta on a 100 Hectare plot of land.
Upon completion of the project the capacity of the manufacturer is expected to boost. Commenting on this Sabir said Repi has the capacity of producing 21,000 Tons of detergents. Yet upon commencing operation in full capacity the factory will be able to manufacture 91,000 Tons of detergents.
The agreement of the two companies is that they will both have a 50 percent share from the total U.S $ 100 Million expansion work. The initial investment is going to be U.S $ 40 Million, according to the Board Chairman. He further explained, this will be covered by the two companies and the rest U.S $ 60 Million will be covered from bank loan.
The new facility that is going to be built in Sebeta will have edible oil refinery, plants for specialty fats, soft oils, soaps, detergents and a packaging plant and facility for sesame seed processing.
According to Sabir when the company starts operating in full capacity, its palm oil production is expected to satisfy the demand of the local market.It was in 1974 that Repi was established by foreign investors under the name
Bianil Ethiopia SC. However, a few months later it was confiscated and run by the government until 2007/2008 It was in 2007/2008 LENA Plc took a stake by forming a joint venture with the Privatization and Public Enterprises Supervising Agency (PPESA). Nonetheless, a year later LENA bought out the remaining 49 percent.
Wilmar on its part was established in 1991 in Singapore and is an agribusiness group. It operates in 11 African countries yet it is its first time stepping into Ethiopia.
Source: The Reporter
