Ethiopian-Saudi investor, Sheikh Mohammed Al-Amoudi is this week expected to partner an Italian firm in the construction of a $764 million steel factory.
Officials said $593 million will be allocated to constructing the factory, with the remainder being set aside for power, water and land leasing.
Al-Amoudi’s company, MIDROC Ethiopia will this week sign an agreement with Danieli SpA, Italian steel mill engineers to construct Toussa Steel Mill, located some 376 kilometres in the north of the country.
The new steel mill is expected to be the largest in Ethiopia, with an estimated annual production capacity of 1.3 million tonnes.
The mill is expected to complement the Horn of Africa country’s construction boom.
Toussa will manufacture reinforcement bars, billets and hollow sections amongst other steel products. It will also produce steel railway tracks in its second phase, according to the company.
The steel factory will be in addition to the 14 long and flat steel manufacturers already operating in Ethiopia with the combined production capacity of more than 1 million tonnes.
Al-Amoudi, named among [I]The Africa Report[/I]‘s 50 most influential Africans this year, is believed to be worth more than $12 billion and has several investments both in and outside Ethiopia.
His multi-billion dollar investments in Ethiopia are thought to employ around 20,000 people.
Danieli SpA is the largest steel plant manufacturer in Italy known for the production of rolling mills for steel melting and long products, and refining processors for steel production.
The company has supplied 90 turnkey plants across the world since 1967 according to its website.