Nylon Yarn Production Plant

1. Product Description: Nylon filament yarn can be manufactured in different degree of orientation such as low oriented (conventional) partly oriented and fully oriented yarn. The yarn may be produced as multifilament or mono filament in a wide range of degree of finesse (deniers). It is also available in bright and semi-dull lusters. The filament yarn is generally specified by finesse grade (deniers), number of filaments and twists per meter length. Nylon yarn is used for the production of different consumer goods such as textile fabrics, upholstery, umbrella clothes, tyre cords, fishnets, ropes, carpets, etc.

2. Rationale: uses that nylon yarn has, one could have expected the presence of a factory that produces this product. But except the nylon textile factory located in Modjo, there are no plants which produce nylon yarn in the country. Consequently, all the nylon yarn requirement of the country is met by imports. A visit to any urban market center will reveal how the market is flooded with imported nylon ropes. The demand for nylon yarn for other uses is also met by imports. As the demand for products which are made of nylon yarn are bound to increase so will the demand for nylon yarn. Given this, it is prudent to promote the establishment of a nylon yarn factory; and the Amhara Region could be the second region to establish a nylon product making factory.

3. Market for Nylon yarn: As mentioned above, nylon yarn is used to make fabrics (of different grades and for different uses) and other assorted products. The use of these products in the country is wide-spread. For example textile fabrics made form nylon yarn are used by women in the rural areas of the country. Nylon fabrics are used for making umbrellas produced in the country. Ropes made from nylon yarn are used extensively both in rural and urban areas. Nylon ropes are used even to make household furniture like chairs, stools and sofas the demand for all these products increase as the population and increases and as urbanization expands. As the demand for nylon yarn is a derived demand, its demand will grow as the demand of products made from the yarn increases. According to a study, the projected demand for nylon yarn will be 208 tons in 2008 and 263 tons in 2015. Unless a local capacity is created, all this yarn will be imported.

4. Source of Raw material: The major raw material is caprolactum and this will be imported.

5. Process and Technology: The manufacturing process of nylon yarn can be broadly divided in to the Following production steps:-

• Polymerisation of caprolactum to manufacture nylon chips

• Extraction and drying chips

• Melt spinning of chips to manufacture spun yarn

• Processing of spun yarn

• Monomer recovery and

• Recycling of nylon waste

The machineries needed for the plant are grouped in to poly condensation/polymerisation, spinning, drawing process, auxiliary units and recovery units. There are different machines in each group. (Local Production of the yarn could start from spinning stage. This will reduce investment cost.)

6. Estimated Investment: For a plant which can produce 1800 tons of nylon yarn per year( part of it to be exported to neighboring countries), the estimated investment is as follows.

§ Buildings 50,000 m2 at Birr 1500/ m²…….. =Birr 75,000,000

§ Plant and machinery …………………......... =Birr 149,500,000

§ Working capital …………………………… = Birr 5,000,000

Total …………………………………. =Birr 229,500,000

7. Benefits: Similar to other identified project ideas

8. Location: Combolcha.