The Korean heavy-duty machinery manufacturer, Daewoo Doosan Infracore Co. Ltd, has picked the Ethio-Investment Group (EIG) as its exclusive agent in Ethiopia, after nine years of business with Hagbes Pvt., its first representative.
 

The agreement between EIG and Daewoo was signed on June 8, 2006, although officials from EIG told Fortune that Daewoo sales from their company will begin this month. EIG is authorized by the Korean manufacturer to import and sell construction equipment such as excavators, wheel loaders and skid steer loaders. The first five 34tn excavators and two three-meter cubed wheel loaders will arrive in the next 60 days, according to Samson Assefa, managing director of EIG.
 

It is the first agency deal EIG has entered to import heavy-duty machinery, since it was first established in 1999 by 40 shareholders, with a capital of 43 million Br. EIG has been importing different vehicle brands, including BMW, Land Rover and Ford automobiles and Scania trucks.

With the construction boom fueled by both  public and private sources and the government planning to invest 34.8 billion Br in the next five years for roads construction, EIG sees strategic significance in entering this deal. Samson disclosed to Fortune that his company has conducted a study that gave confidence to the management on the growth of the construction industry.
 

There are six companies representing various construction machinery manufacturers in Ethiopia: according to data from the Ethiopian Customs Authority, up to 150 machines are imported into the country every year. In the current market, the top price for an excavator is 2.5 million Birr, a wheel loader costs two million Br and skid steer loader is sold for 1.4 million Br.
 

EIG plans to import up to 40 units of heavy machinery per year, and already, spare parts for the heavy machinery, worth 100,000 dollars, are being transported into the country, Samson told Fortune.
 

The management at Hagbes, which has been importing Daewoo Doosan machinery and automobiles for the last nine years, says that they have not received anything official from Daewoo concerning the shift in dealers. They said Hagbes would continue importing Daewoo machinery.
 

Daewoo Doosan Infracore was established in 1937 in Korea, and supplies products and services in construction equipment, industrial vehicles, machine tools, factory automation systems, diesel engines, and defence systems.