ENGSKO

United Milling Systems Millstone Production

ENGSKO A/S

United Milling Systems

Owners:

Cormall Agro Holding A/S

Thoraso/Skiold A/S

Jim Watkins, USA

Grain Milling Can be Done

– and Have Been for

Centuries – in Many Differet

Ways

Mills in Different Sizes –

from Handmills to Industrial

Mills

History 1900 Engsko A/S was established by the Mikkelsen familiy

1975 75 years’ anniversary - production reached 1.000.000 pcs.stones

1977 The Mikkelsen family sells ENGSKO to Sæby Jernstøberi A/S, Sæby, and ABC HANSEN Comp., Cph.

1992 Factory established in India

1994 Company registered in Ethiopia

1998 Production starts in Ethiopia

2004 ENGSKO takes over production /sale of grinding mills

2008 ENGSKO Ethiopia Pvt. Ltd extends capacity - factory in Denmark closed

2016 ENGSKO produces appr. 40.000 pcs. millstones per year. Since the start ENGSKO has produced approx. 4.000.000 pcs. stones.

The First Factory at

Møllestensvej in Randers

The Last Factory at

Møllestensvej in Randers

The New Factory in Ethiopia

November 2008

First Expansion of the Factory

in Ethiopia

Danish Developing Minister Ms. Ulla Tørnæs and Ethiopian Minister of Industry, Mr. Tadesse Hailu

January 2014

Royal Visit at the Factory in

Ethiopia

•HRH Princess Marie and •Danish Minister of Foreign Affairs, Mr. Holger K. Nielsen

Round Table Discussion at DI

(Confederation of Danish Industries)

in Copenhagen

2014 Mr. Henrik Hougaard and Honourable Prime Minister Haile Mariam Desalgen

2013 Mr. Peter Hansen and Honourable Prime Minister Haile Mariam Desalgen

Raw Materials

FRANCE

Flint

POLAND

Hubs

CHINA

Magnesium

oxide

TURKEY

Emery

HOLLAND

Magnesium

kloride

ENGSKO ETHIOPIA

ENGSKO Manufacturing

Company PLC, Ltd. Today

Ownership: 50% Engsko, Denmark

50% three local shareholders

Employees: 42 persons

Introduction: Danish CSR system,

partly financed by IFU/Danida

Present capacity: 20,000 sets (40,000 pcs.)

from 250 mm to 1500 mm

New expansion: Under consideration

Engsko Ethiopia: Net contribution of hard currency

to Ethiopia

Export: Directly+indirectly to appr. 40 countries

Why We Decided to

Establish the Factory in

Ethiopia • Engsko started export to Ethiopia in 1950

• Ethiopia was the main market for quality stones

• Engsko have good experience with trading activities with Ethiopia

• Ethiopia has a central location for export to other African and Middle Eastern countries

• Relatively stable currency

• Easy to obtain approvals for establishment

• Easy access to authorities/ministries

Challenges

• Ethiopian land locked

• Hard currency approvals

• Transport between Addis Ababa and seaport

• Customs procedures

• Rather high company tax

Ethiopia

Facts about Ethiopia Official name: the Federal Democratic Republic of Ethiopia

Population: 99,390,750 appr.

Economic growth: 2004-14: 10.9%

GM per capita: 590 USD

Area: 1,133,380 km2

Religion: Ortodox Christians 43%, Muslims 34%, Protestants 19%

Political system: Federal state consisting of 9 ethnical federal state

War: 1998-2000 war against Eritrea

Agricultural Production

CropArea

(1000 hectares)

Production

(1000 tons)

Corn 2150 5,500

Teff 3,760 3,769

Sorghum 1780 3570

Wheat 1,510 3,200

Barley 1,015 1,620

Millet 440 680

Total 10,655 18,339

New sorts

Cotton

Coffee

Tea

Sesam

Quinoa

Chia

Sugar

Flowers

Oct. -12 - Sept -13

Totally approx. 146 various agricultural products. Waste: Vegetables 40% Cereals 20%

Ethiopia – Total Import/Export

Import: 17.60 mia US$

Export: 5.44 mia US$

Negative Trade 12.20 mia US$

Integrated Agro-Industrial

Parks in Ethiopia

Sample masterplan for

Integrated Agro-Industrial

Park

Integrated

Agro-Industrial Parks

The Currently Largest

Investment Projects

in Ethiopia

• Road system

• Railway system

• Water power electricity

• Farming projects

• All supported by: IMF, World Bank, EKF

• Expected growth rate : 7-10% per annum

The Currently Largest

Farming Challenges

in Ethiopia

• Political situation

• Currency situation

• Draught

• Lack of fertilizers

• Inland revenue

• Import tax system