Product Description: These are the upper parts or covers of shoes made from finished leather. With increasing specialization of all types of manufacturing activities, leather shoe upper are prepared separately and supplied to leather shoes manufacturing factories. Leather shoes factories in industrially advanced countries receive their shoe uppers from leather factories in developing countries.
Market Potential: With the largest livestock population and the 2nd highest human population in Africa, Ethiopia has the highest potential to be the continent’s largest producer and consumer of leather goods. This potential can be translated into reality if the country improves its livestock quality and expands its leather and leather products industry. During the last twenty years, this industry has shown improvement in increasing its product mixes and in expanding its exports. Leather uppers are among the export items of the industry. With 16 percent of the total land mass of the country, the Amhara Region has close to 30 percent of the livestock resources of the country. But the Region does not have leather industries which matches its resources. In the world division of labor, processing hides and skins close to the finishing stage including shoe uppers is left to the developing countries. In this scheme of things, the Amhara Region, being one of the centers of livestock resources, should position itself to produce leather products like shoe uppers. The products have markets both at home and abroad. If the region has about 30 percent of the countries livestock resources, should it not produce, at least, 30 percent of the leather products of the country?
Source of Raw Material: The plant could be an integrated plant where it starts processing raw hides and skins and produces finished leather including shoe uppers. Hence the raw materials, hides and skins, will come within the region.
Process and Technology: The first step is the cutting of leather according to the designs supplied by the customer (shoe manufacturer) with the help of patterns on clicking press. Similarly lining component of suitable material is also cut. The upper components are skived and folded according to the design and lining as joined with it using suitable joining solutions. Then follow the stitching on various types of machines, eyeleting and cleaning. The finished uppers are then brushed and packed for sale. Main machinery required includes pattern shearing machine, grading pantograph, clicking press, stamping machine, flat, post and cylinder bed sewing machine, upper folding and brushing machine, miscellaneous machines and tools, etc.
Estimated Investment: For a plant which can produce 200 closed leather shoe uppers per day and 50,000 per year, the investment requirement will be:
Building/ shade 300 m2 at Br 2000/m2 ………….. =Birr 4000,000
Machinery ……………………….……………= Birr 380,000
Working Capital …………………………….= Birr 200,000
Total…………………….... =Birr 980,000
6.Benefits: Utilizes regional resources, learns foreign exchange, stimulates livestock production, brings in financial resources to the Region
7.Location: Centers where there are hides and skins processing factories, Bahir Dar, Combolcha, Debre Birhan