Reinforcement Iron Bars Making Plant

1. Product Description:  A combination of cement, sand, aggregate and bars of deformed or round iron is the heart of the building and construction industry.  These materials combined together in certain proportion constitute the strength of all building and other construction works.  Buildings, bridges, dams and all kinds of light and heavy construction works require reinforcement bars.  The bars with concrete are reliable in carrying both static and dynamic loads.

2. Rationale:  The production of cement, reinforcement iron bars, sheet glass and bricks are the foundation for the development of modern construction industry.  Most construction materials are bulky which make them expensive to transport long distances.  Thus in practically all cases, many types of construction materials like cement, iron bars, bricks are as far as possible produced in areas which are relatively close to their consumption centers.  The Amhara Region is one of the least constructed and built areas in the country.  In addition, basic construction materials such as cement, reinforcement bars, even bricks are not produced in the Region.  They are all imported from other parts of the country- on the average 600 km from the Region.  This makes these materials more expensive which hampers the expansion of building construction and civil engineering works- which the Region needs very desperately.  Reinforcement bars are made mainly from iron bars which are imported.  The plant which produces reinforcement bars can be located in any city where there is enough power.  At least to save transport cost and to have reliable supply of this essential construction material, there is a strong need to establish one reinforcement bars making plant in the Amhara Region.

3. Market Potential: For a long time there was only one plant which was producing reinforcement bars.  Recently one plant was converted to produce reinforcement bars.  Between 1999 and 2004, average annual production of reinforcement bars was 6,845 tons; and during the same period about the same quantity might have been imported every year.  The two plants are located near Addis Ababa; and the imported bars are also distributed from Addis Ababa.  Similar to many parts of the country, construction is increasing in the Amhara Region.  The current construction volume alone can consume the production of a medium size reinforcement bars making plant.

4. Source of Raw Material: The raw materials are bellets and scrap iron.  Bellets are imported and scrap iron is collected within the country mostly in and around Addis Ababa.  Only bellets will be used in the new plant since scrap iron will not be found in the Region in sufficient quantity.

5. Production Process: The main process is to heat the bellets and making the heated bellets pass through a series of rolling mills whereby the bellets are elongated at each stage of rolling until they reach the desired thickness.  Finally the elongated bars are cut in to the desired length usually 4 meters each.  Main machineries include heating furnace, rough, intermediate and finishing mills.

6. Estimated Investment and 400 more business Ideas in Ethiopia

Hand Made Paper Business Idea

1        Product Description: Generally paper is defined as all kinds of malted or filled sheets of fiber. Hand made paper is a paper made from fiber containing waste. The proposed product will be produced from waste paper, textile cuttings, agricultural waste and grass. Since the manufacturing process is labor intensive, the paper is known as hand made paper.

2        Market Potential:  Paper products are used for a variety of purposes for writing, printing, duplicating, packaging and for other industrial and commercial uses. Currently the demand for paper in the country is met both from domestic production and imports. Consumption of a paper in a country depends on the level of economic development, the level of literacy rate of the population, on the development of the publishing and printing industry, the size of student population at primary, secondary and tertiary level. Generally least developed countries have the lowest level of per capita paper consumption. In Ethiopia, per capita consumption of paper is estimated to be between 0.5 kg to 1.0 kg per year, while in advanced countries the consumption level is move than 100 kgs per year. Even the low level of paper consumption in Ethiopia is not fully met by domestic production. According to a study made on the market for paper products, the demand for paper is projected to reach 148,000 tons in 2011. However, the current domestic production is about 17,000 tons per year. This clearly indicates that there is large captive market for paper in the country. This project idea is to exploit part of this captive market by establishing a plant which can produce hand made paper.

3        Source of Raw Materials: The main raw materials are waste paper, textile cuttings, agricultural waste, grass, caustic soda, bleaching powder and other chemicals. Almost all materials can be obtained from domestic sources.

4        Process and Technology:  The main production or processing stages include collecting and mixing the various waste material inputs, grinding/milling the waste materials, blending the digested raw material inputs with caustic soda, adding the various chemicals and coloring materials, refining/beating of the pulp, moulding and forming a wet sheet, pressing the waste sheet and drying, and (finally) polishing the dried paper and forming sheets of paper as final product. About 17 pieces of machinery and equipment are needed for the plant. Some of the important ones are drag chopper, jute and grass cutter, digester for rags or jute, Hollander baiter roller, cylinder and auto vats for lifting purposes, hydraulic press with single ram cylinder and pumping unit drying chamber equipment, calendaring machine, paper cutting machine, knife grinder platen printing equipment, cutting machine, screen printing equipment, eyeleting machine, greasing machine and perforating machine.

5        Estimated Investment: For a plant that will produce 5000 tons of hand made paper, working 300 days per year with one shift/day operation, the estimated investment will be:- 

§  Building/Shade 3000m²  at Birr 1500/m²      = Birr   4,500,000

§  Plant and Machinery ............................        = Birr   1,400,000

§  Working capital...................................        = Birr      550,000    
              

                                                                Total    = Birr  6,400,000

400 more business ideas in Ethiopia