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Addis Glass plans to triple production capacity

, Addis Glass/Glass International

Ethiopian glass container manufacturer Addis Ababa Glass and Bottle Share Company is seeking to triple its container glass manufacturing capacity.

Addis Glass plans to increase capacity from its current 80 tons per day to 240 tons per day by 2022. 

The total project is estimated at $40m with the IFC considering providing total financing of $25m alongside an East African based private equity firm which specialises in growth, buyout and recapitalisation of medium-sized companies.

As part of its diligence process, the private equity player approached the UK based glass specialists, Glass Technology Services, to provide its assessment of the project and offer technical advice on the company and project. 

Glass Technology Services’ consultancy team reviewed existing production facilities and the proposal for the additional 160 tonnes/day production lines.

GTS assisted Addis Glass to refine its proposal and strengthen its ability to secure financing. 

Addis Glass is a container glass packaging producer which uses electric melting technology. It has benefitted from Ethiopia’s competitive electricity prices. 

A substantial proportion of total power in Ethiopia is generated from hydro-electric sources, which would be boosted by the commissioning of the Grand Ethiopian Renaissance Dam hydro project, due to come on stream soon.

It means Addis Glass is well positioned in low CO2 glass production. 

Dr Nick Kirk, Glass Technology Services Technical Director said: “In order to achieve the additional production output, investment will be required in all stages of production including raw materials processing, batch storage and mixing, furnaces, forming, inspection and packaging. 

“Infrastructure investments extend beyond production - including roads, warehousing and electrical supply.  This is a complex project which is why we were asked to develop the investment schedule for the investors”

The project is now at the design and implementation stage and GTS will continue to support Addis Glass.  

The project team is seeking further external project management support and senior technical resources to assist with the implementation of the project.

Interested candidates should contact Glass Technology Services to express their interest. 

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, © Addis Glass/Glass International

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