Floor coverings and mat of vulcanized rubber are flat colored and patterned piece of material used to cover floors of houses and automobiles. Since they are washable with water and durable in comparison to other type of floor coverings, they are widely utilized for covering the floors of automobiles.
MARKET STUDY
IMPORT OF FLOOR COVERINGS AND MAT OF VULCANIZED RUBBER
Source:- Ethiopian Custom Authority
RAW & AUXILIARY MATERIALS
The major raw & auxiliary materials for the production of floor covering and mat of vulcanized rubber are natural and synthetic rubber, carbon black, process oil, whitening powder, zinc oxide, stearic acid, anti oxidant, normal sulfur and accelerator. All of the raw materials used for the production of rubber floor covering and mat of vulcanized rubber are imported except whitening chalk which is abundantly available in different parts of the country (e.g. Awash- part of MBI) and natural rubber which is developed in Gura ferda woreda of SNNPRS and being developed in other regions such as Benishangul and Gambella regions.
Process Production
The manufacturing process of floor coverings and mat of vulcanized rubber can be broadly be classified into three stages, mixing, building and vulcanizing process.
Rubber is mixed with other ingredients except accelerator- MOZ and curative-sulphur to prepare the master batch. The open mill machine integrates them more thoroughly, producing a uniform product. The next phase of production is mixing the accelerator and sulphur with the master by batch heating the mixture and squeezing it flat in a milling machine. The flat sheet of rubber is cooled in a bathing tank and hanged on metallic hangers. The rubber sheet is then transferred to a rack and stocked for the next operation.
In the moulding process, a roll of rubber sheet is sent to a moulding machine for the desired shape of rubber mat and rubber floor coverings.
Although the rubber has already been vulcanized, it is rather brittle at this point, and needs to be "cured" before it is usable. To accomplish this, the floor coverings and mat formed are cured in large electrically heated press machines.
The total investment requirement is estimated at Birr 10.19 million, out of which Birr 5.38 million is required for plant and machinery. The plant will create employment opportunities for 26 persons.
INVESTEMENT
The project is financially viable with an internal rate of return (IRR) of 14.41 % and a net present value (NPV) of Birr 3.29 million, discounted at 8.5%
The establishment of such factory will have a foreign exchange saving effect to the country by substituting the current imports.