ADDIS ABABA – Ethiopian Airlines Group is set to erect an aircraft component manufacturing plant at Kilinto Industrial Park in a joint venture with the US planemaker Boeing.
The group on Thursday signed a memorandum of understanding with the Ethiopian Investment Commission and the Industrial Park Development Corporation (IPDC).
Per the agreement, Ethiopian will acquire four hectares of serviced land inside Klinto Phase II Industrial Park – one of 12 state-owned industrial parks managed by the IPDC.
We will provide the required support to make this project a reality, Chief of the IPDC Aklilu Tadesse said at the signing event. Klinto is one of 12 state-owned industrial parks managed by IPDC, a public enterprise.
The airlines will invest $15 million to build the manufacturing facility, a joint venture with Boeing.
The plant will manufacture various aerospace internal parts including aircraft thermo-acoustic insulation blankets, electrical wire harnesses, and more.
These internal components will be supplied to Boeing, Airbus, and an Italian aircraft manufacturing company, according to the IPDC.
Ethiopian Airlines Group CEO Mesfin Tasew appreciated all who are supporting the project that will have a great benefit to the country.
When operational, the manufacturing plant will create job opportunities for more than 300 Ethiopians in addition to generating foreign exchange.
The MRO (Maintenance, Repair, and Overhaul) and Aerospace Manufacturing Services is one of the seven business entities of the Ethiopian Airlines Group
Its investment deal comes a year after the group inaugurated a facility for the manufacturing of Thermo-Acoustic Insulation Blankets for Boeing 737 MAX airplanes.
The joint venture company of Ethiopian, with 51% share, and an Italian firm Geven-SkyTecno, named “Ethiopian Sky Technologies”, is based in Addis Ababa with a primary manufacturing facility at Bole Airport.