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Our Enterprise - Hawassa Chip Wood Factory P.L.C














Hawassa Chip wood Factory (HCF) PLC was established over a decade and half ago as a subsidiary of Midroc Ethiopia Group , a conglomerate owned by the internationally renowned businessman, Sheikh Mohammed Hussein Ali AL-Amoudi.

From its inception in 2002, the company was expected to spearhead the development of Ethiopia’s wood and processed wood products sectors. Since 2015 Hawassa Chip wood Factory is under Horizon Investment Group, a specialised arm of Midroc that focuses on agriculture and related sectors.

HCF’s mission is manufacturing and marketing of environmentally sustainable particle boards for local and export markets while its vision is to become number one brand in the wood and processed wood sectors in Africa by producing quality particle boards with advanced and environmentally friendly technology .

Our company is located in Hawassa town , the capital of Southern Nations Nationalities and Peoples Region , 275km south of Addis Ababa. It is situated on a 69,000 square meters land in an ideal part of Hawassa, just five kilometres from the city-center, adjacent the main cross country road that links Ethiopia to Kenya. This helps HCF to enjoy sustainable infrastructures and related services such as power supply, telecom, water, postal and health services, among others, throughout the year.

The major inputs used for manufacturing particleboard are wood and chemicals . The chemical used is urea formaldehyde resin (Glue) , which is imported from abroad while the wood is fully sourced locally.

The factory is believed to have a production capacity of up to 20,000M3 annually , which is yet to be tapped. But currently it is working with a plan to produce 13,800M3 particle boards with a range of thickness. The plant can produce, may also resize, with production details as follows;
  • 1.22m×2.45m×0.08mm
  • 0.61m×2.45m×0.008mm
  • 1.20m0.60m×0.08mm
  • 0.55m×1.10m×0.008mm
  • 0.40m×0.8m×0.08mm
Our products are used for ceiling, expansion joint, bed, particles and for other construction purposes.

HCF’s strong bonds with its customers and its nearby communities have been assisted by the company’s marketing and supply department regularly. For instance, it facilitates merchandise loans to our customers and gives them full guarantees. Such techniques and efforts to assist our customers coupled with our tremendously remarkable services help us to increase the number of customers year on year. Our products have a high standards which helped us to be accepted as the most preferred and reliable brand among customers and people familiar with HCF. This in turn has given HCF good marketing positioning on top of building our customers’ confidence in the consistency of product quality.

Among the various benefits HCF has brought to the local community, the employment opportunities for up to 224 workers, stands out. Add to that, HCF cultivates trees from 985 hectares of woodland through a concession agreement for 20 years in the nearby Wolayta Sodo area.

The use of Eucalyptus tree avoids the utilization of any other species of wood including indigenous plants and maintains environmentally friendly economic ecosystem. The utilization of Eucalyptus tree also contributes to the nationwide efforts of enhancing the recovery of the depleting forest and encouraging commercial tree plantation to sustainably supply the need for timber resources in the industry.

In a nutshell, HCF strives to be a socially responsible company that gives concrete benefits to the communities in the surrounding, the region and the country in general.

Accordingly, the establishment of the factory plays a significant role to increase job opportunities and generation of income for the region. To be specific, it contributes the following major economic benefit for the country:

  • It generates significant revenue annually.
  • It adds to the national income of the nation in the form of profit and another form of taxes annually.
  • It contributes a sizable amount of foreign currencies to the GDP through import substitution.

Rehabilitation program on existing facility and investment in current and new products has thus been one of the main agenda of the Horizon Investment Group management to make the company more productive and profitable. This new retrofitting of automation of the company with new technological advancement makes the company one of the leaders in providing particle boards to both local and global market with competitive price and high quality. These efforts are in line with company’s extra unused area which gives it a significant margin for improvement and potential for expansion and modernization to fully realize its vision, by building upon long established core values of the company.

Staff commitment, integrity, trust, teamwork, productivity, continuous improvement, competitiveness, customer satisfaction through the delivery of high customer value and corporate social responsibility remain values of our company.

Further, we are highly committed to the production of high-quality chip wood in a manner that ensures the protection of the environment; this includes keeping the working environment conducive and suitable for the workers. To ensure this, the company has prepared the Environmental Protection Plan (EPP) to communicate the aforementioned commitment to the factory staff, regulatory agencies, and the public.

We are also on track to mobilize and harmonize the human resource to make each workforce tuned with customer focused and customer social responsibility approach. This helps to create workforce determined to contribute to the satisfaction of customers and committed for the country with high regard for communities and the public thereby helping the company’s productivity and maintaining it already impeccable image.

OUR EMPLOYEES Employee’s commitment, Integrity, Trust, Teamwork, Productivity, Continuous improvement, Competitiveness, Customer Satisfaction through the delivery of high customer value and corporate social responsibility are values of our company.

OUR MISSION The Mission of Hawassa Chip wood Factory is manufacturing and marketing of environmentally sustainable particle boards for local and export market while its vision is to become number one branded quality name in the wood and processed wood sectors in Africa by producing quality particle boards with advanced and environmentally friendly technology.



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