March 9 (Bloomberg) -- Starbucks Corp. put on hold plans to build a coffee research center in Ethiopia because of the slowing global economy, Capital said, citing Vivek Varma, a spokesman for the company, and Ethiopian Prime Minister Meles Zenawi.

Starbucks’ then chairman and current Chief Executive Officer Howard Schultz said during a visit to Ethiopia in November 2007 that the company would open a research center to improve the quality of Ethiopian coffee, the Addis Ababa-based newspaper said. A similar facility in Rwanda has also been put on ice, Capital said.

In June 2007, Starbucks and Ethiopia ended a dispute over the Horn of Africa nation’s efforts to gain U.S. trademarks for three of its most popular coffees. Terms of the settlement were not disclosed.

To contact the reporter on this story: Jason McLure in Addis Ababa via the Johannesburg bureau at abolleurs@bloomberg.net.

Last Updated: March 9, 2009 04:31 EDT