Photo: Addis Fortune
By Hawi Abdisas
Ambassador Garment & Trade Plc has announced that it will double its production capacity in the next six months at the cost of 350 million Br.
The Company, whose current production capacity is 500 suits a day, at its factory in Gerji, Bole District, unveiled the expansion project in a contract signing ceremony held at Sheraton Addis Hotel last week. The expansion project will be undertaken on a 25,000sqm plot of land at Gelan, which was acquired by Ambassador 12 years ago from the Gelan City Administration.
With the aim of realising the project, Ambassador has inked an agreement with Juki Singapore Private Ltd and Macpi Group (Hong Kong) Ltd to install new garment machinery. The purchase of the machinery will consume two-thirds of the total cost allocated for the expansion project.
Noriaki Saito, vice president of Juki Singapore Private Ltd, Stefano Borodogna, managing director of South Asia Macpi Group, Hong Kong, and Teshome Tafere, factory manager for Ambassador Garment & Trade Plc, signed the agreement for their respective companies.
Juki Singapore Private Ltd, a Japanese company, will provide computerised sewing machines that require minimal manual labour and help to increase production capacity. Macpi Group (HK) Ltd will provide different machinery, with functions of in-line pressing, finishing pressing and sponging.
The companies have also agreed to train the staff of the factory in setting up the machinery, according to Teshome.
Juki Singapore Private Ltd opened an office in Addis Abeba, Ethiopia, on October 30, 2014. And it has worked with other garment factories such as Almada Textile Factory Plc, Velocity Apparels Plc, Maa Garment & Textiles, and Itaca Textile Plc, according to Hagos Meresa, branch manager of the company, Ethiopian office.
“The rapid growth in the demand for local suits necessitated for the expansion of production,” said Ezana Shifraw, general manager of Ambassador Garment & Trade Plc. “Also, it will help us to compete with both local garment manufacturers and importers which are growing in numbers.”
Currently, there are 115 garment factories in the country.
“The increasing number of higher education graduates and the demand for suits by banking and insurance employees are among the reasons for increased production,” explained Ezana.
Currently, the price of suits manufactured by Ambassador ranges from 2,100 Br to 6,000 Br.
Although the new project is expected to have a positive impact in raising quality and standards of the suits, it will not have a significant effect on price, according to Ezana.
Ambassador has more than 750 employees, out of which 350 are factory workers while the rest are engaged in sales. This is expected to increase by 800 upon completion of the new facilities.
Ambassador, which owns 85 retail stores throughout the country, imports raw materials to produce suits from China, Turkey and India.
Upon completion of the expansion project, the Company has a plan to undertake the same project in the next 12 months, which is expected to raise its production capacity to 2,000 suits a day.
Ambassador Garment was established by Seid Mohammed three decades ago with a single sewing machine and 3,000 Br in capital. Besides the garment factory, it has sister companies including Ambassador Hotel and Ambassador Real Estate. It is also constructing Ambassador Mall at Arat Kilo.