The new ethanol company, named Wonji Ethanol Technology Share Company, will be built at Wonji Shoa Sugar Factory, in the outskirt of (about 12 km away from) Adama city.
WONJI, Ethiopia–The Ethiopian Sugar Corporation and Eugen Schmitt Company of Germany (Eugen Schmitt GmbH & Co. KG) signed a joint investment agreement on May 25, 2017 to set up ethanol factory in Wonji Shoa Sugar Factory, 110km from Addis Ababa, in Oromia Regional State.
Based on the agreement of the two institutions a company called “Wonji Ethanol Technology Share Company” is established.
According to Mr. Fasil Gebra-Mariam Legal Affairs Executive Officer of Sugar Corporation, the Corporation has signed the agreement with the veteran German-based company which has vast experiences in producing ethanol. Mr. Fasil added to his note that there are three other shareholders which have reached an agreement to work with the Corporation as well as Eugen Schmitt Company.
Mr. Fasil further disclosed that the working capital of the Wonji Ethanol Technology SC is more than 46 million Euros (~55 million USD) both in cash and in kind.
According to the agreement Eugen Schmitt and the Corporation have 83% and 14% of the share, respectively, while the rest three shareholders have 1% each.
The agreement will legally be effective when it is ratified by the Corporation′s Board of Management and Ministry of Public Enterprises. The Board of Management of the Corporation has already ratified the agreement, it was learned.
The Factory which is going to be set up at Wonji Shoa Sugar Factory uses molasses, a by-product of sugar, to produce ethanol.
Source: Ethiopian Sugar Corporation
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