NSE-LSE cross listed firm, Atlas has announced that it has secured a memorandum of understanding (‘MOU’) with a leading Ethiopian brewer, Raya Brewery Share Company for the supply of glass bottles to be produced at the Company’s planned glass bottling factory in Chancho, 45km north of the capital, Addis Ababa
Under the MOU, which was signed through Atlas’s Ethiopian subsidiary TEAP Glass, the Company and Raya have agreed in principle, subject to confirmation of quality, to enter into an offtake agreement, to regularly supply international standard, high quality glass bottles to Raya, in substitution of the imported bottles which it currently uses.
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Both parties recognise the need for the manufacture of bottles in-country and will work together to finalise a full agreement once the development of the Chancho Project is completed. The MOU demonstrates that the demand fundamentals for glass bottles in Ethiopia are extremely buoyant and the Board are of the view that it underlines the belief that the Chancho Project represents an ideal project to access the emerging Ethiopian consumer market and build a strong presence within the East African industrial sector.
Carl Esprey, Chief Executive Officer of Atlas, said: “This relationship underlines the demand for bottles in Ethiopia and the exceptional opportunity that we have. Raya is a prominent brewery in Ethiopia which currently imports its bottles from abroad. Beer production is continuing to grow year on year and with the substitution of imports a significant pillar of the country’s industrial policy, we are ideally positioned to capitalise on the opportunities arising from this. The Ethiopian consumer market is rapidly transforming the country into a manufacturing powerhouse and so we look forward to working with Raya, as well as identifying further opportunities.”
ATLAS
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