It is located at Western Ethiopia of Oromiya Regional State in eastern Wollega, Eilu Ababora and Jimma Zones at the Didessa Rift Valley at a distant of 540 kilo meters from the capital through the route of Addis Ababa-Jimma-Beddelie-Nekemet Road. The altitude of the area is 1,350 meters above sea level while its annual rainfall is 1,400 millimeter. Its rainy season is extends from May to October. The soil content which is usually black in color and rarely blue together with its climate makes the area suitable to sugarcane cultivation.
The Factory had been owned by a Pakistan company called Al-Habasha P.L.C. which had been unable to proceed the business. Therefore, the company had been transferred to the ownership to the Ethiopian government and was made to operate as a property of Sugar Corporation as of August, 2012. Over 90% of the construction of the plant was completed when it was transferred to the Corporation.
The Factory is inaugurated by FDRE Prime Minister Hailemariam Desalegne on May, 2015. Commencing production by mid 2015, it is in operation with a design crushing capacity of 8,000 tons of cane a day. Equipped with necessary facilities, it is expected to produce electric power from its by-product which enables it satisfy its own power demand as well as export some to the national grid and also produce ethanol in the future.
The Factory in total will have 20,000 hectares of land cultivated with cane. Its source of water is the Didessa River. Currently, 1,660 hectares of land is made irrigable area. And, has 3,448 hectares of land covered with cane. 64 residential houses and two service giving buildings are constructed.