The Foundation for the Renewal of Tigray (EFFORT) has signed a contract with Chinese engineering company ECE Engineering to build the first PVC resin (polyvinyl chloride) plant in Alato district of Mekele, the capital of Tigray state, at a cost of 5 billion Birr (US$250 million at current exchange rates).
       The EPC contract, signed yesterday at the Sheraton Addis Hotel, was awarded following a lengthy tender process that began in 2012. The project was subsequently re-tendered several times before the contract was finally awarded to ECE, which agreed to complete the project within 30 months from the start of work.
       The plant is expected to produce 60,000 tons of PVC resin per year with quality grades ranging from SG1 to SG8. In addition, the chemical production complex will include a series of other production lines, including a chlor-alkali plant, a vinyl chloride monomer (VCM) plant, a PVC production line, a water treatment plant, a waste recycling plant, etc.
       EFFORT CEO Azeb Mesfin, the widow of the late prime minister, predicted that once the project is completed, the value it creates will significantly increase the donor group’s overall net worth.
       Polyvinyl chloride resin is a critical industrial chemical with huge demand both domestically and internationally. Experts say the chemical is of strategic importance to manufacturers, especially plastic factories in Ethiopia. Currently, large amounts of foreign exchange are spent on importing the product, especially from oil-producing countries, as it can also be produced from distilled crude oil.
       Rigid PVC is widely used as liquid pipes in shrinking processes, while liquid PVC can also be used in cable coating and related manufacturing processes.
       Azeb said that the idea of ​​the factory was her husband’s and she is happy that the project has been realized. She also said that SUR and Mesfin Engineering will play an important role in the construction process of the project and its successful completion.
       The project area is rich in limestone reserves, which is a key raw material for PVC resin plants.