The state-owned carrier, the biggest in Africa, has already signed the deal involving the local state Industrial Parks Development Corporation, the Ethiopian Investment Commission said on X, formerly known as Twitter.
The venture will make "aerospace parts, including aircraft thermo-acoustic insulation blankets, electrical wire harnesses, and other parts," the commission said.
"The investment project is expected to create employment opportunities for more than 300 Ethiopians," it said.
The commission did not say when production would begin. There was no immediate comment from Boeing.
Other African carriers like Kenya Airways have said that a shortage of parts, caused by the Ukraine war crisis which cut the supply of Russian titanium which is an essential component of global aviation, has led to flight disruptions.
It was not immediately clear if Ethiopian Airlines has also suffered from a similar lack of parts.
The airline, which has a fleet of 140 aircraft, said in June that its earnings rose by a fifth to $6.1bn in its latest financial year.
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