1. Product Description:- A cement is a material which binds together solid bodies (aggregate) by hardening from a plastic state. Cementing is an essential ingredient of virtually every type of construction. To be self-sufficient in cement production is one basic requirement for the development of the building and other construction industries.
2. Rationale:- All the cement requirement of the Amhara Region comes either from Muger or Mekele which are more than 500 km each from Bahir Dar. Transporting cement from these areas increases the price of cement in the Amhara Region by at least 40 percent. This makes the cost of cement more expensive than in any other larger region of the country. The high cost of cement in the Region, retards the growth of the construction sector. The recent upsurge in construction activities in the Region clearly indicates the need of establishing cement factory (ies) in the Region. This project idea proposes the establishment of a small scale cement plant in the Amhara Region.
3. Market Potential:- Between 2000-2004, average annual production of cement was 972,000 tons. Since there were no imports of cement, domestic production of cement was equivalent to domestic consumption. The share of cement consumption of the Amhara Region could be about 20 percent which was close to 243,000 tons per year. This annual consumption has increased substantially during the last two years. Partly due to increased demand, the price of cement has increased to an unprcented level and this has seriously affected the construction industry especially in the Amhara Region where the price increase has been the highest. In the long-run, the best solution for the Region is to establish a large cement factory with conventional technology and production processes. This will require huge investment perhaps close to Birr billion which can be beyond the financial resource of investors in the Region. The alternative will be to go for a small scale technology which requires less investment. Until such a time that large scale investment is undertaken in the Region to produce cement, small scale production of the product will satisfy part of the demand for cement in the Region.
4. Source of Raw Material:- Raw materials used to produce cement are lime stone, clay, bauxite, iron ore and gypsum. Except the iron which is required in very small quantity, the other raw materials are found in the Region.
5. Process and Technology:- The technology to be used is the vertical shaft kiln process which is appropriate for small scale production. The main process is as follows. Limestone, clay and coal, after primary crushing are proportioned and finely ground in a ball mill and then nodulized in a dix nodulizer. The nodules then falls by gravity in to the vertical shaft kiln, where they come into contact with pre-heated air. The fuel in the nodules ingnites providing the necessary heat for clinker formation. By the time the materials leave the conical portion of the kiln and enter the cylindrical portion, they have already been converted into cement. The clinkers are mixed with gypsum and finely ground in a tube mill to give Portland cement. Main plant and machinery include: jaw crusher for lime stone, blender, ball mill, jaw crusher for clay, vertical shaft kiln, coal dust burner with pulveriser, clinker and cooler, ball mill for finishing grinding, filling machine, sealing machine, and testing equipment.
6. Estimated Investment:- For a plant which can produce 200 tons per day, estimated investment will be as follows.
n Building/Shade-6000m2 at Birr 1500/m2 = 9,000,000
n Plant and machinery = 23,500,000
n Working Capital = 6,000,000
38,500,000
7. Benefits:- Promotes self-sufficiency, stimulates the development of the construction sector, saves regional financial resources, introduces new skills and technology.
8. Location:- Close to the location of the main raw material-lime stone.