Deep Kamra, the country manager of Dangote Cement -- owned by Nigeria's Dangote Industries Limited -- was attacked yesterday in the restive Oromiya region while returning to Addis Ababa from the factory, PM News Nigeria reported.
Mr Kamra's secretary and driver, both Ethiopians, were also killed by the assailants, the report said.
"The company's director died following an attack by unknown gunmen that took place while returning from the factory alongside two company employees," a government statement said.
"Security forces are currently pursuing the assailants," it said.
The Dangote plant, one of the 10 established in Africa and outside Nigeria, was commissioned in May 2015.
The plant is Ethiopia's largest cement producer.
It has rich limestone reserves of about 223 million tonnes, it said.
Oromiya, which surrounds Addis Ababa, was plagued by violence for over two years, largely fuelled by a sense of political and economic marginalisation among its young population.
The country remains under a state of emergency imposed in February, a day after prime minister Hailemariam Desalegn resigned.
Former army officer Abiy Ahmed has since replaced him.