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Product Description: These ore iron sheets which are galvanized and usually corrugated and used for covering roofs. The sheets are produced with rectangle shapes but with different sizes and thickness.
Market Potential: About 25-30 years ago, it was only houses in the main urban centers that used corrugated and galvanized iron sheets for roofing material. Almost all houses in the rural areas used special types of grasses or straws to cover their roofs. As a result there was only one corrugated iron sheet factory in the whole country up to the end of the 1990’s. During the last 10 years, people in rural areas have started using corrugated and galvanized iron sheets for roofing purposes. They use these iron sheets as a sign of prestige and also for security against fire. Now it is common to see houses in rural areas covered with corrugated iron sheets. This trend is increasing every year. Some rural families even use money they borrowed from the State for income generating activities to buy corrugated iron sheets for their houses. Because of this new trend, demand for corrugated iron sheet has increased greatly. To meet this new demand, one or two new factories are established and the finished product is also being imported.
In the Amhara Region demand for corrugated iron sheets have been also increasing. One corrugated iron sheets producing factory was established in combolcha. But its production volume is not sufficient to meet the demand of the Region. In fact, the Region imports huge quantities of these products from other parts of the country and from abroad and this situation will continue until the Region creates its own capacity of producing enough quantity of the product.
Domestic Production and Import of Corrugated Paper Box (in ton)
Source: CSA and Customs Authority, (various yeas)
In rural Amhara alone, there are abut 3.6 million housing units. Currently not more than one percent of these housing units have corrugated iron sheets as roof covers. This leaves abut 3.56 million housing units with thatched roofs.
If we assume that one housing unit is about 50 m2, total size of rural houses in the Amhara Region with thatched roof will be about 178,000,000 m2. For a one m2 floor space one corrugated iron sheet is required as a roofing material. Hence the total potential demand for corrugated iron sheets in the Amhara Region can be 178 million pieces. If ten percent of this demand is realized, about 18 million pieces of corrugated iron sheets will be needed.
Source of Raw Material: Local factories import the iron sheets. So will the new plant to be established in the Amhara Region.
Process and machinery:- Once the iron sheets are obtained, the process of converting them into corrugating and galvanized iron sheets only requires corrugating and galvanizing. Corrugating is done using special machines and subjecting the flat iron sheets to certain loads. Galvanizing is done by submerging the iron sheets in a “pool” of “liquid” zinc with electric current passing through the “liquid” zinc.
Estimated Investment: For a plant which will produce about 300,000 pieces of corrugated iron sheets, the estimated investment will be:
Buildings 500m2 at Br. 2000/m2 = 1,000,000
Machinery 3,000,000
Working capital 3,000,000
7,000,000
Benefits: Saves regional financial resources, promotes self-sufficiency, conserves natural resources- such as grass which protects the soil from water and soil erosion, protects homes from fires,
Location: Bahir Dar