Back Ground and Establishment
The company is located at southern part of capital city of Ethiopia; Addis Ababa, at a town called Akaki, which is 26 km from Addis Ababa, adjacent to the main road to Debrezeite, Djibouti.
The idea of establishing the former spare parts factory was conceived in 1968 E.C. Up on the Growing shortage of spare parts in Ethiopian industries. To alleviate this problem the establishment of a spare part factory becomes imperative.
The German Democratic Republic(GDR) and UNIDO Conducted Preliminary studies for the establishment of a spare part factory in 1969 and 1971 EC Respectively. Subsequent to this a Swedish company (SWCO) between 1972 and 1974 E.C conducted a detailed feasibility study financed by the Swedish international development agency (SIDA). SWECO conducted extensive study conveying four major industries (sugar, textile, Cement and metal work industries) despite that establishment of a spare parts factory had been recommended that can manufacture 3600 different items.
Project implementation started on April 1977 E.C. following the contract signing agreement took pleas in January, 1976 EC. Between Nations metal works corporation and an Italian engineering company “FATA”. The erection and commissioning of “a spare parts factory” and the factory was inaugurated on February 1981 E.C with a capital of Birr 142,298.000 (USD16.4 Million) having a couponed area of
155.000 m2. Out of which 30,500m2 is a plant area.