Orchid is an Ethiopian company which specialises in infrastructure, construction, manufacturing and logistics and with over 2,000 members of staff.
Atlas Development which is listed on the Nairobi Securities Exchange (NSE) on the other hand specialises in providing the full spectrum of support services including risk management consulting, civil engineering, provision of remote workforce accommodation, facilities management, turn-key medical support, transportation and storage.
“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,” Atlas CEO Carl Esprey said on Tuesday in a statement sent to the NSE.
The joint venture, which is on a 50:50 basis, is aimed at providing 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.
Atlas Development will mainly aid in ensuring provision of international standard services while Orchid will provide local support.
“Orchid is a major player in Ethiopian support market services and this partnership will provide a good foundation to increase our activity levels in the country,” Esprey added.
According to management, the Atlas Development is targeting to benefit from the growth potential of Ethiopia in the extractive and infrastructure sectors.
Year to date, the company is down 81.7Percent and was the top loser in the month on October.