Acrylic Yarn Production Plant

1. Product Description: Acrylic yarn is a type of yarn made from man made fibers. The yarn is used for making fabrics which are, in turn, used for making clothes. Fabrics made from acrylic and other synthetic yarns are popular in the rural areas of the Amhara region. They are used by both men and women.

1. Rationale: Probably because of their durability, fabrics made from acrylic yarn are widely used in the rural areas of the Region. These fabrics are made as jackets, trousers, skirts, shirts, etc. Even the garment called “Gojam Azene” is woven from acrylic yarn; and this garment is worn by practically every male in the rural areas of the Region. But the fabrics made from acrylic yarn and the yarn itself is all imported from abroad. With practically everybody wearing clothes made from acrylic fabrics, one could have expected the existence of both an acrylic fabric and acrylic yarn making plants in the Region. But this is not the case. Given the fact that the majority of the rural population wear clothes made from acrylic fabric, it is necessary to establish an acrylic yarn producing plant and an acrylic fabric making factory in the Region. The acrylic yarn producing plant will produce yarn for the cottage weaving and knitting industries. It can also supply acrylic yarn for some of the textile mills which will use the yarn for blending purposes.

2. Market Potential: Of the 19 million people in the Amhara region about 8.5 million are male who live in the rural areas. Among the rural male population, 5.78 million are above the age of ten. If we assume that at least one individual uses 4 m² of acrylic fabric every year, total annual consumption of this fabric will be 23.1 million m². This is more than the production capacity of the Combolcha Textile Mills which was 20 million m². If we include the consumption of acrylic fabrics by rural women and some portion of the urban population, the total annual demand for acrylic fabrics will be much more than 23 million m². This quantity is more than the viable production capacity of a modern medium size textile factory. This is about 9,200 tons of yarn.

3. Source of Raw Material: Synthetic fibers like acrylic yarn are made from different raw materials. Some are made from petroleum products: others are made from coal and trees. Still others are made from chemicals. Production of the substance from which the acrylic yarn is to be made requires huge investment and complex technology and this is done in industrially advanced countries. Hence the “raw material or the “artificial cotton” from which the yarn will be made will be imported.

4. Process and Technology: Production of acrylic yarn or synthetic fiber follows the pattern of cotton yarn production. The main processing stages are drawing, combing, roving, spinning, twisting, winding, setting and packing. Depending on the type of plant to be established, the production process could start from spinning. Main plant and machinery include roving, spinning, twisting, winding and setting machines.

5. Estimated Investment: For a plant which will produce about 2000 tons of acrylic yarn, the estimated investment will be:

n Buildings/shade 400 m2 at Birr 1500m2……= Birr 600,000

n Plant and machinery ………………………=Birr 15,000,000

n Working capital ………………………=Birr 1,000,000

Total………………...= Birr 16,600,000

6. Benefits: Saves foreign exchange and regional financial resources, self-sufficiency in a basic consumer product, introduces new skills and technology.

7. Location: Combolcha.