Kessem sugar Factory is located in Afar region zone three`s Awash Fentale and Dullecha districts. It is found 250 km from Addis Ababa and 50 km from Metahara Sugar Factory.
It originally has been started as an expansion project of Metahara Sugar Factory. Later on it was studied that its distance from the factory and its sustainability as an independent sugar factory made it an independent sugar factory.
It was constructed by the 123 million dollar loan given by Chinese Development Bank. Constructor of the factory is the Chinese COMPLANT Company. The factory began trial production in 2015 and commence regular production the following year.
Working in its full capacity in the first phase the factory can crush 6,000 tons of sugarcane per day. With its expansion it is expected to crush 10,000 tons of sugarcane a day.
In its first phase the factory is presumed to produce 153,000 tons of sugar and 12 million 500 liters ethanol. It can also generate 29 megawatts electricity of which it uses 16 megawatts for its own operation and sends the remaining 13 megawatts to the national power grid.
The design capacity of the factory shows that the expansion work will enable the factory produce 260,000 tons of sugar and 30 million liters of ethanol in the future.
The factory area’s 20,000 hectares is developed by Kessem Dam which has the 500 million cubic liter. The sugarcane development is also found at Bolhamon area. As per an agreement reached with Amibara Agricultural Development Private Company, the company is developing sugarcane on six thousand hectares land and delivering it to the factory.
Irrigation Infrastructure Construction
- 2,946 hectares land is irrigated
- Construction of 20.5 km main canal is completed
An average 2,823 hectares land of the factory and 6,000 hectares land of Amibara Agricultural Development PLC is covered with sugarcane.
- 648 houses and 25 service giving blocks are completed and they are giving service.
Ever since its inception Kessem Sugar Factory, which is benefiting the local community both socially and economically, has benefited 42,773 local youth as well as citizens via the project, contractors and 29 micro and small enterprises by creating permanent, contractual and temporary job opportunities.
Moreover, 399 members organized in five sugarcane outgrowing cooperative unions have reached a business agreement with the sugar factory as out grower modality to deliver sugarcane for the factory. These also have benefited from the development activity going on in the area.