1. Product Description: Paints are largely organic coatings applied to surfaces to provide both protective and decorative functions. Paints are fluid finishing compositions containing coloring substances dispersed in a suitable medium called the “vehicle” which may be a drying oil, varnish or a dispersion of glue or casein in water. When the paint is spread on the surface of a metal or any other surface as a thin film, it forms a solid adhesive protective or decorative coat.
2. Rationale: Paints are industrial products which are bulky and consequently expensive to the transport. Usually the ingredients are produced in large scale and centralized chemical industries. But the formulation (mixing) of the ingredients to make paints can to be done in small scale operations in sites located close to consumption centers. But in our country all the factories are located in Addis Ababa; and the regions have to pay high transport costs for buying paints from Addis Ababa. This situation can not go on forever. As long as they are viable, factories should be established in other parts of the country; and one of these factories that should be established in the Amhara Region is a paint and varnish factory.
3. Market Potential: Practically all paints used in the construction and metal fabrication industries are formulated in the country. In 2004, total consumption of paints in the country was 8.95 million liters; and the share of the Amhara Region was 2.3 million liters. These Again paints were transported from Addis Ababa. Similar to some other regions in the country, construction is expanding in many parts of the Amhara Region; and this is expected to increase in the future. With 2.3 million liters of consumption a paint factory will have sufficient market if established in the Region.
4. Source of Raw Material: All the ingredients except water are imported.
5. Production Process & Technology: Major processing stages include mixing, grinding, thinning, tinting, refining and filling and packing. Main plant and machinery include, ball mil, planetary mixer, triple roll mill, filtration equipment, storage barrels, etc.
6. Estimated Investment:
§ Building 1000/m2 Birr 1,000,000
§ Plant and Machinery Birr 500,000
Total 1,500,000
7. Benefits: self- sufficiency, conservation of financial resources, new skills and technology.
8. Location: Bahir Dar and Combolcha