AIM and NSE listed Support services and logistics company Atlas Development has announced that it has established an Ethiopian joint venture company with Orchid Business Group PLC (Orchid), a prominent Ethiopian infrastructure, construction & logistics company, to provide industry leading international standard services in Ethiopia.
According to Atlas this significant development is in line with the Company’s strategy to focus on advancing its project pipeline in Ethiopia to open up additional opportunities.
Ethiopian owned Orchid Group has over 2,000 staff and an asset portfolio covering construction, logistics and manufacturing.
The JV, which is owned on a 50:50 basis by Atlas Development and Orchid, will draw from both parties’ industry expertise, networks and reputations to deliver high quality, international standard services within the Ethiopian market.
Atlas adds that the JV aims will provide services to clients primarily in the natural resource development and infrastructure sectors, through civil engineering, project management, work-force accommodation solutions and on-going life support services.
Within the JV, Atlas Development will be primarily responsible for ensuring that the JV reaches international standards on quality, health and safety, and compliance, and will provide access to capital while Orchid will provide operational support and will harness its local network in pursuit of business development opportunities.
According to Chief Executive of Atlas Development, Carl Esprey the joint venture with Orchid will provide a fantastic foundation to increase the company’s activity levels in country.
“Ethiopia holds significant potential, being one of the fastest growing African economies, so we are excited about the opportunity to build on our expertise in the development, extractive and infrastructure sectors to achieve scalable growth. Additionally, having been able to partner with a local company of Orchid’s standing means that we will have access to additional opportunities to expand the business, which may not be available to other international companies,” said Esprey.
The Jv also hopes to build capacity in the local workforce through the provision of training, skills transfer, and development programmes relating to recognized international standards.
Among works handled by Orchid is the recent past with some ongoing include:Grand Ethiopian Rennaisance Dam Project, Awash Kombolcha Hara Gebeya Railway Project, Lebu Akaki IT Park Outer Ring Road Project, Saula Kako Road Construction Project, Addis Ababa Bole International Airport Terminal Expansion Project, Pile Foundation Works, Awash Kombolcha Hara Gebeya, Pile Foundation and Water Well Drilling works Adura Akobo Road project, Pile Foundation Works for 3 bridges and AAWSA/ CGC Overseas – Legehadadi Deep Water Well Drilling works.