Xinye starts 180,000-tonne aluminium plant in Ethiopia as Chinese investment expands

The new facility in Ethiopia’s Gada Special Economic Zone is expected to strengthen local aluminium supply, while Chinese technology firms are also exploring investment opportunities in the country.

Ethiopia has added new aluminium production capacity with the launch of Xinye Special Steel’s electrolytic aluminium plant, a facility with an annual capacity of 180,000 tonnes. The development comes as Chinese companies continue to explore investment opportunities in the country’s manufacturing and technology sectors.

Xinye Special Steel Chairman Shu Wenping announced that the company had completed preparations and commenced operations at the plant during a meeting between Ethiopian Investment Commission (EIC) Commissioner Zeleke Temesgen and a delegation of Chinese business leaders in Addis Ababa.

Located in the Gada Special Economic Zone, approximately 65 kilometres southeast of Addis Ababa, the facility is expected to strengthen Ethiopia’s industrial supply chain and reduce reliance on imported aluminium products.

Explore the production, demand and consumption forecasts of bauxite and alumina in our report: "Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook"

New capacity targets domestic aluminium supply

The launch adds a major aluminium production facility to Ethiopia’s manufacturing landscape. With an annual capacity of 180,000 tonnes, the plant is expected to support the country’s industrial supply chain and increase the availability of aluminium products.

The announcement did not provide details on the plant’s current output, the range of products it will manufacture or the timeline for reaching full production capacity.

The facility is part of a broader push to attract foreign investment under Ethiopia’s homegrown economic reform agenda. The EIC said it would continue to provide support to foreign investors, from project establishment through to commercial expansion.

Chinese firms explore wider investment opportunities

The meeting also included representatives from Henan Huaxi Furnace Refractory Co. and Shenzhen Success Electronics, who expressed interest in Ethiopia’s expanding Information and Communications Technology (ICT) sector.

Shenzhen Success Electronics, established in 2004, specialises in the research, development, production and distribution of LCD screens, touch panels and integrated display modules. The company exports to markets including Europe, Japan, South Korea and Singapore.

Henan Huaxi Furnace Refractory has international market experience across Turkey, Russia and India and holds more than 50 proprietary patents.

The discussions signal interest from Chinese businesses beyond aluminium production, although the source did not announce confirmed investment agreements involving the two technology companies.

Looking for unwrought aluminium business opportunities? Explore potential leads of primary aluminium on AL Biz.