It is found 670 km from Addis Ababa and at only 300 km distance from port of Djibouti. It is found at Mille, Dubti, Asaita and Afambo districts of Afar region. The location where the factory is located makes it more strategic to export sugar.
The factory`s construction began in 2005/2006. The constructor of it is The Indian OIA (Overseas Infrastructure Alliance) company. The first phase of the factory began trial production in 2014 and is now in regular production.
When it reaches its full production capacity it can crush 13,000 tons of sugarcane per day and is expected to produce about 300,000 tons of sugar a year.
It will also generate 60 megawatts of electricity when it starts producing full gear. It uses 38 megawatts for itself and sends the rest to the national power grid. It as well is expected to produce 27 million liters of ethanol.
The first phase of the factory uses irrigation water of Awash River at Tendaho dam for sugar cane development. The dam has the capacity to hold 1.86 billion meter cube water and is expected to nourish 60,000 hectares land.
As the factory facilitates irrigable land for the pastoralists, the pastoralists now are becoming semi farmers.
Construction of Irrigation Infrastructures
- More than 42 km main canal and other level structure works are completed
- 22,835 hectares land is irrigated
- 17,683 hectares land is covered with sugarcane
- 8,997 residential houses and 146 service providing blocks have been constructed and they are giving service.
Ever since the beginning of the project 77,035 people have got job opportunities at the project on permanent, contractual and temporary basis. 84 micro and small enterprises have been organized.
In order to make participants and benefit the local community from the development 16 sugarcane outgrowing cooperative associations with 1,667 members have been organized. They are, creating mutual relationship, working with the factory as out grower. Sugar Corporation has spent 1.60 million birr in total for its social responsibilities.