Ethiopian textile manufacturers preying on export markets.

In the historic town of Adwa in northern Ethiopia (where Ethiopia defeated the Italian invaders thoroughly in 1896) is Almeda Textile (ALTEX), Ethiopia's biggest textile factory.

Textile mill which was completed 10 years ago, employs 3,200 workers of the city's 60,000 residents and is by far the largest employer on the site. The factory is in the midst of a major expansion process where both capacity and workforce planning doubled. Almeda is a subsidiary of the Endowment Fund for the Rehabilitation of Tigray (EFFORT).Ambassador Jens-Petter Kjemprud visited the factory last Saturday.

Almeda currently exports 30% of its production mainly to Italy, Germany, Switzerland and Sudan, but want to increase the export share of production. Almeda thus has just signed an agreement with Starbucks on the production of work for employees in the coffee company's restaurants in the U.S.. Export products are currently mainly work clothes and uniforms, including to health care in Italy in particular (the largest single contract). Also sengeetøy and curtain fabric is a major export (Almeda previously exported linen to IKEA). The company also supply the uniforms for military and police.Almeda want to promote in Norway on those areas where you have good experiences, or partnership with companies in Norway define new areas and asked the embassy for support to make contacts in Norway. All production is based on Ethiopian short-fiber cotton.

 

Almeda is ISO 9001-2000 certified and produces 16 million meters fabric last year. The company has a prominent role in the ongoing industrialization in Ethiopia and has received numerous awards for production and exports, and price for the best value start a business in Ethiopia. Workers are organized in Tekstiarbeiderforbundet have collective bargaining rights and lønnsivået well above the Ethiopian minimum wage. Almeda went last year through the Starbucks strict working standards before eskportkontrakten was signed. Salaries are still low compared with the rising wage costs in China and India, and Almeda tries to exploit this competitive advantage, but is under pressure from a variety of Turkish startups in Ethiopia.

For further information, see: almeda@ethionet.et