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Joint Venture with Orchid Group, Ethiopia
Atlas Development (LSE:ADSS), the African focussed support services and logistics company, has announced that it has established an Ethiopian joint venture company with Orchid Business Group PLC, a prominent Ethiopian infrastructure, construction & logistics company, to provide industry leading international standard services in Ethiopia.
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.
Orchid Group is a successful, Ethiopian owned multidisciplinary operation, with 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. The JV aims to 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. With its impressive track record, and extensive resources, Orchid will provide operational support and will harness its local network in pursuit of business development opportunities.
Importantly, through the provision of training, skills transfer, and development programmes relating to recognised international standards, the JV will also build capacity in the local workforce.
Chief Executive of Atlas Development, Carl Esprey said, “Orchid is a major player in the Ethiopian support services market and this partnership will provide a fantastic foundation to increase our 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. We look forward to building on our relationship with Orchid and to a prosperous future for the benefit of all concerned, including our clients operating in Ethiopia, the local staff who will receive first class training which would otherwise not be available, and our shareholders.”
