Defense Engineering Corp Absorbs Bishoftu Automotive, High Tech Engineering

Defense Ministry elevates its status to Industry Group

The Ministry of Defense has approved a request from the Defense Engineering Industry Corporation (DEIC) to take-over two industrial complexes previously under the Ethio Engineering Group (EEG). The Ministry has also given the green light to rename the Corporation the Defense Engineering Industry Group (DEIC).

Sources familiar with the matter told The Reporter that Defense officials have authorized DEIC to take control of Bishoftu Automotive Engineering Industry and High Tech Engineering, both of which were previously under EEG.

Following the political upheaval of 2018, the troubled Metals and Engineering Corporation (MetEC) was split into two state enterprises. EEG was established as a purely commercial wing, while the Defense Engineering Industry Corporation was founded as the military wing.

When the Council of Ministers established the Corporation in 2020, the rights and obligations belonging to Gafat Armament, Homicho Ammunition, Dejen Aviation Engineering Industries, and a fuel and propellant processor were transferred to it.

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The Reporter has learnt that during the two-year northern Ethiopia conflict, the Ministry of Defense passed a decision to place Dejen Aviation Engineering Industry under the control of the Air Force.

On the other hand, the fuel and propellant sub industry was upgraded into a full fledged research and development wing.

Beyond the transferred assets, the former Corporation has in the past three years launched an electronics manufacturing outfit that produces medium and long-range radios for civilian and military use. It has also established a vehicle assembly and manufacturing plant.

The vehicle assembler began operations by leasing space from EEG and has been engaged in an overhaul and other work for institutions including the Federal Police Commission, sources told The Reporter.

The Corporation, now Group, has been petitioning the Ministry for an expansion, recently succeeding in having two industries transferred to it from EEG.

The assets in question are Bishoftu Automotive Engineering Industry, which was originally established during the Derg era for military vehicle maintenance and assembly works and High tech Engineering, which used to assemble television sets while under the management of MetEC.