Sugar Corporation and Eugen Schmitt Company of Germany signed a joint investment agreement on May 25, 2017 to set up ethanol factory in Wonji Shoa Sugar Factory.
Based on the agreement of the two institutions a company called “Wonji Ethanol Technology Share Company” is established.
According to Ato Fasil Gebra-Mariam Legal Affairs Executive Officer of Sugar Corporation, the Corporation has signed the agreement with the veteran German company which has vast experiences in producing ethanol. There are three other share holders which have reached an agreement to work with the Corporation as well as Eugen Schmitt Company.
Ato Fasil further disclosed that the working capital of the company is more than 46 million Euros both in cash and in kind.
According to the agreement Eugen Schmitt and the Corporation have 83% and 14% of the share respectively while the rest three shareholders have 1% each.
The agreement will legally be effective when it is ratified by the Corporation′s Board of Management and Ministry of Public Enterprises. The Board of Management of the Corporation has already ratified the agreement, it was learnt.
The Factory which is going to be set up at Wonji Shoa Sugar Factory uses molasses, a by-product of sugar, to produce ethanol.