BREAKING NEWS: Ethiopia Extends Emergency Law


Defense Enterprises Establish New Share Company


The company will open manufacturing plant with 10 million dollars.




Two state-owned defence construction companies are teaming up with a U.S.-based company to create a share company to manufacture building materials. The new company, Legendary Defense Products, was formed by Defense Enterprises (DCE), Legendary Mega Corporation, and Defense Construction Materials Manufacturing Enterprise (DCMME), with an initial investment of ten million dollars.

Legendary Mega Corp, DCE and DCMME are the shareholders in the company. Legendary MegaCorp, a U.S based company, owns 51pc of the shares. DCMME owns 29pc of the shares while the remaining 20pc is owned by DCE. It was Legendary MegaCorp that brought the initiative to establish the share company.

DCE and DCMME are Ethiopian Government enterprises established by regulations. They work on infrastructure development for the Ethiopian Government defense projects. They also work to fill the gaps of non-military infrastructure industry by taking part in big construction projects. DCMME supplies construction materials while DCE carries out the construction task. The enterprises jointly completed the 151 kilometers long Agulae-Berahle-Dalol concrete asphalt road project in 2015.

The factory will manufacture building materials like prefabricated walls, roofs and partitions in the first phase of its production. They will be manufactured at the factory in accordance with construction specifications and installed at the construction site.

“We’ll transform the construction industry from the traditional construction method,” Habtamu Kassahun, CEO of Legenday Defense Products, told Fortune.

Legendary Defense Products will mostly engage in construction of buildings.

The factory, which is expected to commence after six months, will make its products available to the market. Exporting the construction materials is also one of the plans of the factory.

The new factory is expected to create 40 to 50 permanent job opportunities and hundreds of temporary jobs.

The factory, which will be established around Qality, will use modern technological equipment that have not been used in the country before. “As we already have the basic infrastructures to establish the factory, it won’t take a long time to bring and install the production line,” Habtamu, told Fortune.

The company has also planned to open moveable factories producing building materials.

“The factory, with better technology, will help those engaged in the construction projects save about 20pc to 30pc on construction costs and 40pc of construction time,” Hector Reyes, founder and chairman of Legendary MegaCorp, said in a press briefing held at Sheraton Addis.

Legendary MegaCorp, based in the United States, is a global development firm that works on finance, design, construction, and operation of public and private infrastructure projects. It has worked in infrastructure and development projects in African countries including Cameron, Gabon and South Africa.

“Working in partnership with Mega Corp in one company will provide us the opportunity for technological transfer,” Welday Berhe, General Manager of DCE, told Fortune.



By HAWAZ MERAWI
FORTUNE STAFF WRITER

Published on Dec 27,2016 [ Vol 17 ,No 869]


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