China-based Sinoma International Engineering has signed a cooperation agreement with Sino-Ethiopian joint venture, National West Industrial Holding (NWIH) Building Materials Holding Co, to undertake a US$600m investment in an industrial park development project in eastern Ethiopia.

Sinoma will undertake the engineering, procurement and construction works of the Melka-Jebdu industrial park development project, which includes a 6000tpd cement plant, along with metal and lime production plants, in Dire Dawa, 452km east of Addis Ababa. The industrial park will be located near the ports of Djibouti, which will provide the company with a strategic location to easily access international trade routes and export products.

“Once completed, the Melka-Jebdu Industrial Park will be able to produce 6000t of cement and an additional 1000t of lime per day as well as 700,000t of metals per year,” said Buzuayehu Tadele, chairman of the NWIH, just before the signing of the agreement.

The construction of the cement plant is an extension of NWIH’s investment in cement production in the country. The company’s first plan is located in Lemi Town, Semien Shewa (North Choa) area of Amhara region.