The Factory is found at Zone Three in Awash Fentallie and Dulecha districts of Afar Regional State, 50 kilo meters from Metehara Sugar Factory and 250 kilo meters from Addis Ababa. It is a project which has a total of 20,000 hectares of land to be cultivated with cane & its plantation stretches to the areas known as Kessem and Bolhomon. The Kessem Dam which has a capacity of holding 500 cubic meters water is the source from which sugarcane cultivation is being carried out. Irrigable land has reached 2,946 hectares while the construction of 20.5 kilo meters of main canal is completed. Currently, the factory has 8,413 hectares of land covered with cane among which 6,000 hectares cultivated by a private company known as Amibara Agricultural Development with which Sugar Corporation has signed contractual agreement.
Earlier the Kessem project was part of the expansion project of Metehara Sugar Factory. It was after the establishment of Sugar Corporation that the project was made to proceed as an independent entity. The construction contractor of this Factory is a Chinese company – COMPLANT. 517 residential and 20 service giving buildings or blocks are constructed.
The Factory making trial production by March, 2015 is now in regular operation. And, it will also be a factory with ethanol and co-generation facilities. The Factory is expected to start crushing 6,000 tons of sugarcane per day soon which will later on will develop to 10,000 TCD making it capable of producing 153,000 tons of sugar & 12,500 meter cube ethanol a year at the start and when it later reaches its maximum crushing capacity it will produce 260,000 tons of sugar and 30,000 meter cube ethanol annually. Moreover, the Factory out of the total 26 mega watt electric power it is expected to produce through its cogeneration facility, will contribute 15 mega watts to the national grid satisfying its own demand.