1. Product Description: This is a wire net which is widely by builders and in a number of industries. Wire nets are also used in soil conservation structures and also as retaining wall for holding mud slides along roads built on hilly areas.
2. Rationale: Among the uses that wire gauge or gabbion provides the most relevant for the Amhara Region is its uses in the prevention of soil erosion. As we all know, the Region being mountainous in most parts is subject to severe soil erosion every year. Due to lack of soil conservation measure, most of the soil resources of the Region are eroded and soil productivity has declined considerably in many parts of the Region. Though expensive compared to other soil conservation measures, the use of gabbion is one effective way to protect and conserve the soil resources of the Region. Gabbion is particularly effective to stop the formation of gullies or to control the widening of already formed gullies. Besides, in the construction of roads, gabbion is used for constructing retaining walls to protect mud slide or the stride of stones towards the road which can cause the road to be blocked. Given this, the establishment of a wire gauge making plant in the Region is necessary.
3. Market Potential: The Amhara Region covers an area of 170,000 km2 of which more than 80 percent needs soil protection structures one of which is the use of gabion. If situations had permitted 136,000 km2 of the Amhara Region should have been provided with soil conservation and protection measures. If we assume only ten percent of this area is to use gabbion for soil conservation structures, total area will be 13,600 km2. The quantity of gabion to be used for this area will be enormous. When demand for other uses of wire gauge is added, the combined demand for wire gauge can easily absorb the production of a medium size wire gauge plant.
4. Source of Raw Material: Main raw material is wire which can be obtained from domestic factories.
5. Process and Technology: Although there are a number of different types of wire gauges such as honeycomb, diamond, woven wire and crimped wire, it is mostly the honeycomb which is widely used. The netting is hexagonal and the mesh size may vary from ¼ inch to 2 inches. Main processing stages include the following. Wire of the correct gauge is fed from a wooden bobbin and is twisted together by a machine with another wire fed from a spiral coil rod. The finished netting is coiled on to a roller for dispatch. Main machinery required includes wire netting machine, special coil winding machine, bobbin winding machine, beaming carriage and lathe.
6. Estimated Investment: For a plant which can produce 30,000 rolls per year estimated investment will be as follows.
§ Building/Shade 200m2 at Birr 1500/m2= Birr 300,000
§ Machinery = Birr 300,000
§ Working capital = Birr 300,000
900,000
7. Benefits: Contributes to the soil resources protection efforts of the Region, introduces new skills and technologies, saves regional financial resources; maintains productivity of soil, etc.
8. Location: Combolcha, Bahir Dar, any other town preferred by the investor.