1. Product Description: Plastic chairs are chairs made of plastics and used for seating in different places and occasions. They are used in public places such as restaurants, coffee shops, libraries, schools, etc. Plastic chairs are replacing chairs and seats made from wood, plywood and metals, the chairs have some unique properties which made them “better” choices to consumers. They are light in weight, less expensive than other types of chairs, more comfortable than ordinary wooden chairs, etc. Plastic molded chairs are of two types: plastic molded base with steel frame and a complete plastic molded chair.
Rationale: Though the material that plastic chairs are made from is imported which costs foreign exchange, the advent and widespread use of plastic chairs and tables contribute to the conservation of our forest resources since they replace chairs and tables made of wood. For this reason alone, the domestic production of plastic chairs and tables should be encouraged. It is only in the last 10 to 15 years, that the use of plastic chairs was introduced to the Ethiopian market. Within this short time the use of the product has spread to practically all urban areas of the country. Even domestic production of plastic chairs has started in and around Addis Ababa. The use of plastic chairs and tables will expand and increase in the future. The products will be used by the rural population also. The Amhara Region should have its own plastic chairs and tables producing plant since this will reduce the price of the products in the Region.
3. Market Potential: A study for the Addis Ababa Administration has projected the demand for plastic chairs to be around 660,000 in 2005 for the city alone. Addis Ababa has about 3 percent of the urban population of the country. Rough estimates show that demand for plastic chairs by the urban population to be about 2.1 million. The demand share of the Amhara Region is about 0.5 million. These indicative demand figures show the existence of opportunities for investment in plastic chairs and tables production in the Region.
4. Source of Raw Material: The main raw materials are plastic granules such as polypropylene (PP) and a crylonitile butadiene styrene (ABS) resins. If the chairs have to use steel for legs or frames, steel pipes will be also needed. The plastic materials will be imported while the steel pipes can be purchased locally.
5. Process and Technology: Plastic chairs are made using injection moulding machine. The process of making these chairs and tables involves preparation of the raw plastic material, giving shape to the product using injection moulding and finishing work on the moulded product. If the chairs or the tables are to have steel legs or frames, preparation of steel pipes to make legs and frames will be undertaken. Machinery and equipment needed include injection moulding machine, moulds and dies, scrap grinder, pipe cutting and binding machines, drilling machine, welding machine, material handling equipment, weighing scale.
6. Estimated Investment: For a plant which can produce about 150,000 pieces of plastic chairs and tables, the following will be the estimated investment.
• Buildings/shade 1000m2 at Birr1500/ m2 = Birr 1,500,000
• Machinery and equipment……………… = Birr 14,000,000
• Working capital ………………………….. = Birr 600,000
Total …. = Birr 16,100,000
7. Benefits: Contributes to the conservation of forest resources, promotes self sufficiency in industrial products, introduces new skills and technology
Location: Combolcha, Bahir Dar