KMTF was established in 1969 by Polish and Ethiopian investors as a private limited company and is engaged in the manufacture of various hand tools like pick axes, axes, shovels, hammers and crow bars required by the construction and agriculture sectors. The plant was nationalized in 1975 and put under the ex-National Metal Works Corporation (NMWC). A sickle manufacturing plant was added to the factory in 1984 by NMWC. When the NMWC was dissolved by the current Ethiopian government, the supervision of the KMTF was passed to the Privatization and Public Enterprises Supervising Agency (PPESA) until it was sold and handed over to Nigat Mechanical Engineering S.C. as of March 1, 2006.
Nigat Mechanical Engineering S. C. (Nigat) was legally formed in August 2004 under the laws of Ethiopia. Its founding members are all professionals, the vast majority being practicing mechanical engineers. It is administered by a board of directors elected from among the shareholders. The Board is primarily composed of mechanical engineering professionals and businesspersons with long and distinguished careers in government and private industries. Nigat had 29 share holders on initial start-up and this has currently increased to 156.
Nigat was established with a subscribed capital of Birr 1.04 million and this has been increased to Birr 80 million with a current paid-up capital of Birr 44 million. Nigat was initially formed, eyeing the government’s plan to privatize numerous establishments, especially factories it had under its holding. It acquired Kotebe Metal Tools Factory (KMTF) from the government as of March 1, 2006. Nigat has taken a number of measures to rehabilitate and expand the factory since its acquisition.