Small Scale Paper Macking.pdf

152. PROFILE ON SMALL SCALE PAPER MAKING 152-2 TABLE OF CONTENTS PAGE I. SUMMARY 152 -3 II. PRODUCT DESCRIPTION APPLICATION 152 - 3 III. MARKET STUDY AND PLANT CAPACITY 152 - 4 A. MARKET STUDY 152 - 4 B. PLANT CAPACITY PRODUCTION PROGRAMME 152 - 7 IV. MATERIALS AND INPUTS 152 - 8 A. RAW MATERIALS 152 - 8 B. UTILITIES 152 - 8 V. TECHNOLOGY ENGINEERING 152 - 9 A. TECHNOLOGY 152 - 9 B. ENGINEERING 152 - 10 VI. MANPOWER TRAINING REQUIREMENT 152 - 12 A. MANPOWER REQUIREMENT 152 - 12 B. TRAINING REQUIREMENT 152 - 13 VII. FINANCIAL ANLYSIS 152 - 14 A. TOTAL INITIAL INVESTMENT COST 152 - 14 B. PRODUCTION COST 152 - 15 C. FINANCIAL EVALUATION 152 - 16 D. ECONOMIC BENEFITS 152 - 17 152-3 I. SUMMARY This profile envisages the establishment of a plant for the production of paper with a capacity of 7,500 tonnes per annum. The present demand for the proposed products is estimated at 136,000 tonnes per annum. The demand is expected to reach at 379,454 tonnes by the year 2017. The plant will create employment opportunities for 75 persons. The total investment requirement is estimated at Birr 38.55 million, out of which Birr 20 million is required for plant and machinery. The project is financially viable with an internal rate of return (IRR) of 29 % and a net present value (NPV) of Birr 41.26 million, discounted at 8.5%. II. PRODUCT DESCRIPTION AND APPLICATION Paper is a material made from pulped wood or a variety of other materials like baggasse of sugar cane, straw, trees of vegetables and other cellulose materials. In this profile paper from pulped wood is considered and it is intended that this raw material shall be provided by out growers. Paper is used for writing and printing, for wrapping and packaging, and for a variety of other applications ranging from kitchen towels to the man