Pilot sustainable paint production factory in Ethiopia Ethiopia is an emerging country showing continuous high economic growth during the last ten years. The construction sector is one of the flourishing sectors. Not only in Addis Ababa, but in all bigger and small cities huge office buildings and real estate houses are being erected. This has created an increased demand for interior and exterior finishing products, such as paints. Because of a growing awareness about the potential harmful effects of some of the trace components present in most coatings, there is an increased demand for environmentally friendly products. The latter contain no volatile organic compounds or formaldehyde and are mostly water based.The local partner VIVID Private Limited Company imports and applies eco-friendly paints and other finishing products from Terraco Egypt Chemical Industries for already eight years and has created a market for these eco-friendly products. Terraco Egypt Chemical Industries will be the applicant of this project to establish the first factory for the production of eco-friendly paints and other finishing products in Ethiopia. The proposed paint factory will be built by the two joint venture partners in Chancho area and will combine the most stringent environmental guidelines for interior and exterior paints in the world and produce a range of products which fully complies with them all. Terraco Egypt Chemical Industries works conform West European standards and has an extensive Corporate Social Responsibility (CSR) policy regarding people and the planet. This CSR policy will also be introduced and implemented in the new paint factory in Ethiopia.Corporate Social Responsibility (CSR)The joint venture will have to adhere to the CSR policy of Terraco Group. Control of age of the workers is done by checking the school records and ID papers. Workers are encouraged to become members of the Union.Impact•	Employment and working conditionsThe company will employ 51 people, out of which 26 at basic-level. This will increase to 211 employees, of which 109 basic two years after the project.The salaries of the lowest paid staff will be at least 52 euro a month, this is more than two times the minimum wages in Ethiopia. The company will provide free transport, safety clothing and shoes, health care insurance, risk insurance.•	Innovation / Transfer of knowledgeTerraco will introduce new knowledge on the production of water based environmentally friendly paints in Ethiopia. Further, the employees will be trained to comply with the high standards of production according to ISO 9001 criteria.•	Chain effectsThe construction sector will benefit from this project as the environmentally friendly paints will be available year round without long waiting periods at affordable prices. The joint venture will set an example of environmentally friendly paints and production methods which the other factories will have to follow in order to satisfy their clients. The workers engaged in the application of paint and other finishing products will benefit by not having to work with hazardous materials. The same holds true for the clients of the construction projects.The paint factory will try to source its raw materials as much as possible in Ethiopia itself. This will benefit at least 4 of 5 companies in the supply chain of the factory.•	EnvironmentThe joint venture will introduce the production of environmentally friendly paint products in Ethiopia. This will have a positive impact on the paint production sector, on the construction sector and on the society at large, as the users of the painted buildings will stay in a healthier atmosphere. Visitors of the factory plant will be made aware of the environmental impacts of the project. The company will implement an Environmental Impact Assessment. However, the production process is based on proven Western-based technology and according to strict environmental production standards.As the company will not work with solvents, but only produce water based paints, the environment is protected from hazardous waste. The European norm of the amount of Volatile Organic Compounds (VOC) used in the paint is 30 grams per litre, the norm of Terraco is 5 grams per litre. The paints will not contain formaldehyde nor lead. The used technology does only produce a little waste water, which will be treated on the site. The paint consists for 50% of water. Until now VIVID imports this paint from Egypt. By implementing this project, huge savings on water transportation is achieved, decreasing the carbon footprint.•	Position of women60% of the employees will be female. To establish an ISO 9001 certified factory in Ethiopia to produce eco-friendly paints.