An Ethiopian firm has entered into an agreement with Italy’s biggest steel plant manufacturing firm, Danielia, to establish a US$ 600 million steel power plant in the rural Ethiopian region of Kombolcha in the Amhara province.
MIDROC Ethiopia, one of Ethiopia’s largest holding companies, said it signed an agreement with the Italian firm in Addis Ababa Wednesday, to construct the steel processing plant in Kombolcha, about 376 kms north of the capital, Addis Ababa.
The new steel mill, to be known as the Tossa Steel Mills, would be constructed over an unspecified period. The Italian firm will provide materials for the construction, design and installation of key machines at the plant, according to state media reports.
The new plant would manufacture steel products, including steel used for the construction of railway lines in what would be one of the largest industrialization projects initiated by a non-state firm.
MIDROC Ethiopia Chairman Sheikh Mohammed Al-Amoudi, said the new plant would produce varied steel products with a production capacity of 1.3 million tonnes of steel.
Ethiopian firm aims to increase its steel output by 28 percent.