1. Product Description: This is a very handy plastic-like item which finds usage in a wide number of applications. It consists of adhesive tape which is a good insulator and can be applied to an exposed conducting surface in order to from an insulating layer over it. Black insulating tape is used in electrical fitting works, with cables, electrical motors and other electrical equipment and instruments.
2. Rationale: Any place where there are electrical installations, one finds black insulating tapes. Given this, it is easy to imagine the quantity of black insulating tapes being used in the country; it is probably in the hundreds of thousands of rolls. Again like so many other industrial products, black insulating tapes are imported for domestic consumption. However, this product could easily be produced in the country. If promoted effectively investors in the Amhara region could produce insulating tapes for the national and regional market.
3. Market Potential: Since there is no any plant which manufactures black insulating tape in the country, a new plant to be established for this purpose will have sufficient market which will make it financially viable. By substituting imports, the new plant will produce for an existing market. As the electrification process of the country expands, the demand for insulating tapes will also increase.
4. Source of Raw Material: Some ingredients which make up the adhesive such as castor oil resin, carbon black can be obtained from domestic sources. Other inputs will be imported.
5. Process and Technology: A plastic sheet is cut to desired width; the adhesive is applied to both sides of the sheet; The plastic with the adhesive is wound on a plastic spool; and the tape is ready for use. For making the adhesive, a compound of crape, asbestos, castor oil resin, carbon black, mineral rubber and other additives are mixed in a fixed proportion. The mixture is then applied on a plastic tape or on a fabric. Machinery required include mixing mill, spreading and slitting machine, bench grinder and hand tools.
6. Estimated Investment: For a plat which will produce 40,000 rolls of insulating tape per day, the estimated investment will be:
§ Building/Shade 120m2 at Birr 2000/m2 = Birr 240,000
§ Machinery = Birr 150,000
§ Working Capital = Birr 200,000
590,000
7. Benefits: Saves foreign exchange and regional financial resources, has the potential of bringing financial resources to the Region, promotes self-sufficiency, introduces new skills and technology to the Region.
8. Location: Any urban center preferred by the investor.