Product Description: Multi-wall Kraft bag is a large size multi-ply paper bag made up of more than two sheets of strong Kraft paper (normally 3-4 ply) for the purpose of holding heavy matter over 10kg. The bag is a suitable container for cement, fertilizer, rice, barley, wheat flour, sugar, common salt, palletized resin and other industrial chemicals in powder and grain forms. Kraft bags come in four types to suit the shape of the material to be contained: one end machine-sewn, both ends machine-sewn, one end pasted and both ends pasted. When air tightness is required, a highly anti-moisture paper bag can be made by inserting pitched Kraft or such moisture prevention paper as poly ethylene paper in between the Kraft papers.
Market Potential: The main users of Kraft bags are the cement factories operating in the country. Currently flour mills, sugar factories, fertilizer and salt importers use bags made from synthetic material. In 2004, production of cement in the country was 1,415000 tons. Each 50 Kg of cements needs one Kraft bag; and 1,415,000 tons of cement requires 28.3 million Kraft bags. Additional cement factories are to be established in the near future. Hence within five years, the demand for Kraft bag will reach more than 45 million per year. Importing all these bags will consume a substantial amount of foreign exchange every year. Since the volume of demand justifies the establishment of a Kraft bag making plant, establishing this plant in the Amhara Region will contribute to the industrial development of the Region.
Source of Raw material: Main raw materials required include kraft paper, crepe paper, sewing thread, filter code, paste and ink. Some of the raw materials will be obtained locally.
Process and Technology: Kraft paper is put on the tubing machine, placing the number of sheets corresponding to the required number of ply, for simultaneous tubing and printing with a press inter locked with a tubing machine. Paper tube manufactured on the tubing machine is machine sewn on an automatic both-ends sewing machine, after the shaping of valve done manually. The finished bags are inspected and bundled into 20 or 25 bags per bundle. Main machinery and equipment needed include complete tubing machine, both-ends sewing machines, one- end sewing machine, packing machine, compressor, paste making machine and inspecting machine.
Estimated Investment: For a plant which can produce 10 million kraft bags per year, the required investment will be:-
Building/shade 1750m2 at Birr 1500/m2 = Birr 2,,625,000
Machinery and Equipment….………………. = Birr 2,500,000
Working capital ……………………………….= Birr 900,000
Total = Birr 6,025,000
Benefits: Similar to other projects.
Location: Bahir Dar, Debre Birhan