Almeda Textile is one of Ethiopias largest vertically integrated textile companies

Almeda Textile is one of Ethiopia's largest vertically integrated textile companies

Ethiopia’s Almeda Textile, which supplies apparel to Sweden’s fast-fashion retailer Hennes & Mauritz (H&M), is planning to ramp up production to five times its current capacity in the next five to six years at its Adwa factory, the company told just-style.

By then, Almeda’s "current production of 17,000 pieces of basic knitted T-shirts per day will go up to 24,000 pieces, and the daily production of woven classical shirts will go up to 8,000 pieces from the current 5,000 pieces," said Tesfu Teklemarian, Almeda Textile’s deputy general manager (commercial).

In addition, the company’s current daily spinning capacity of 17,000 kg will reach 100,000 kg per day, while the daily weaving capacity will reach 32,000 metres per day from the present 24,000 metres, he added.

To reach this target, Almeda Textile is planning investments worth US$7.50m in the short term: "It will be spent on upgrading the existing capacity both in production and quality," said Teklemarian. The company numbers 5,300 employees.

In the long term, Almeda Textile will focus on introducing new textile technology; product varieties; as well as new styles of products using materials such as Lycra (also known as elastane and spandex), although the amount to money involved has yet to be determined, according to Teklemarian. The funds will be provided jointly by the company’s owners and through a bank loan.

Although the volume of clothing sold to H&M following the upgrade will likely grow, the amount of increase will "depend upon the product type and style," he said.

Moreover, the Ethiopian government has been supporting the industry, allowing garment industry textile inputs to be imported duty-free, he added.

Almeda Textile is owned by Ethiopian conglomerate EFFORT group - The Endowment Fund For The Rehabilitation of Tigray - and is one of the country's largest vertically integrated textile companies with spinning, weaving, finishing and apparel manufacturing facilities. Its plant near the city of Adwa, in northern Ethiopia, is about 1,000 km from the capital Addis Ababa.