The total project is estimated at 40 million USD with the IFC considering providing total financing of 25 million USD alongside an East African based Private Equity firm specialising in growth, buyout and recapitalisation of medium-sized companies, who is considering an equity investment in the business.
As part of their diligence process, the Private Equity player approached the UK based glass specialists, Glass Technology Services, to provide their assessment of the project and offer technical advice on the company and project.
In developing the proposal, Glass Technology Services’ consultancy team reviewed existing production facilities and the proposal for the additional 160 tonnes/day production lines. Following initial audit and due diligence, the experts in glass assisted Addis Glass to refine their proposal and strengthen its ability to secure financing.
Addis Glass is one of the leading manufacturers of container glass packaging products utilising electric melting technology, where they benefit from Ethiopia’s very competitive electricity prices. Given a significant 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 coming on-stream soon, Addis Glass is well positioned as one of the leaders in low CO2 glass production.
Dr Nick Kirk, Glass Technology Services Technical Director explained, “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 Glass Technology Services will continue to support Addis Glass. The project team are currently seeking further external project management support and senior technical resources to assist with the implementation of the project.
Interested candidates, with experience of glass production facilities, infrastructure and project management should contact Glass Technology Services to express their interest.