Peniel Industry 120m Br plant launched

ETHIOPIA – Peniel Industry Plc has launched its 120-millionBr crown cork manufacturing plant in Lebu on June 6, 2015.

The company which just started operations, has a capacity of one billion crown corks per year, with production expected to reach 1.8 billion with the installation of more machinery over the next six months, said Birtukan Abebe, an owner of the company.

Going further into the business, the company has also leased 2,000sqm of land in Dukem for another factory where it plans to manufacture plastic bottle caps with an investment of 107 million Br.

The Lebu plant, in Nefas Silk Lafto District, lies on 2,000sqm of land, with the construction work costing 53 million Br.

Although it is yet to make deals with any of the beverage companies in the country, Peniel is fully targeting the local market, 90pc for beverages and 10pc for the cosmetics industry.

Currently, there are four crown cork manufacturing companies in Ethiopia, including CGF Crown Cork and Aluminum Cap Manufacturing Factory, Ethiopian Crown Cork & Can Manufacturing S.C., Daylight Applied Technologies Plc and Metal Crown, with a combined production capacity of 2.9 billion crown cork pieces per year.

CGF is the largest of the operating crown cork factories with the designed production capacity of 1.5 billion crown cork pieces. The current demand for crown cork is 5.4 billion crown corks per year, but local manufacturers supply only 2.2 billion pieces. The demand is expected to reach 5.9 billion crown corks.

The investment of crown cork needs a diversified number of industries and the joining of new beverage factories with a growing demand for crown corks is expected to attract investment of packing companies, Getahun Negash, public relations director of the Ethiopian Investment Commission, told Fortune, adding that the launching of the new crown cork factory will ease the importation of crown corks by beverage and other companies.

Peniel Industry Plc is also involved in the aluminum business with a sister company called Alba Aluminum Plc.

June 15, 2016; http://addisfortune.net/articles/peniel-industry-120m-br-plant-launched-in-lebu/

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