PRODUCT DESCRIPTION AND APPLICATION
Transmission belts are used for power transmission purposes by connecting driving and driven pulleys of machinery. Transmission pulleys are widely used in industrial, agricultural, construction and other operations to transmit power. Of the various types of belts in use V- belt is considered for this project as it is the type (according to the market study) more in demand.
MARKET STUDY
IMPORT OF TRANSMISSION BELT (KG)
Source: - Customs Authority.
Import of transmission belt during the past seven years has shown a general increasing trend although it is characterized by fluctuations. The yearly average level of import during the period 2000-2002 was around 160 thousand kilograms and increased to a yearly average of about 301 thousand kilograms during the period 2003-2005. The quantity imported in the year 2006 has sharply increased to 455.7 thousand kilograms. Compared to the average yearly import of the period 2003-2005, there is a total increase of about 51% or annual growth of about 13%.
RAW MATERIALS
India and China are a few of the sources for the required raw material. Ethiopia is also developing a rubber plantation and processing project at Guraferda woreda in SNNPRS which is planned to replace the imported natural rubber in the medium term.
TECHNOLOGY
Production Proces
The process starts with a thin layer of cushion rubber sheet wound by a cord of fabrics with slight tension. The cover cloth which is a woven jacketing fabric rubberized by fractioning in a calendar is cut into strips and laid in the V grooves of the ring mould .The groove is then filled with the extruded strip of filler rubber compound. Trapezoidal section is formed at this stage. The ends are then joined together.The assembly is wrapped with nylon tape and the moulds are transferred to steam vulcanizing chamber which would result in the finished product
Belts of larger sizes are made on adjustable belt presses where more than a single layer of cord fabric is used. A fabric cord coated with adhesive is cut to the desired width, and the strips are wound in layers over filler and the cover cloth is sealed. The belt is vulcanized in stages in hydraulic presses.
INVESTEMENT
The total investment requirement is estimated at Birr 12.19 million, out of which Birr 6.98 million is required for plant and machinery. The plant will create employment opportunities for 64 persons.
The project is financially viable with an internal rate of return (IRR) of 21.62 % and a net present value (NPV) of Birr 6.04 million, discounted at 8.5%.