1. Product: Chipboard is a rigged panel made from process eucalyptus tree and other wood. It is used in the construction and wood work industries.
2. Rationale: Agro-forestry product of eucalyptus tree which abundantly grows in various places in the region can be used to make chip board panels. Well planned forest of eucalyptus tree can be a constant supply for chip wood making plant. The rural population and private investors can be encouraged to grow eucalyptus tree to supply for the chip wood factory. The forest farming and the chip wood factory creates employment for many people. There is no chip wood making plant in the region. The product is imported from Addis Ababa. The chip wood making plant with wide development of forest can contribute a lot to the development of the region.
3. Market: Chip wood boards are highly demand by building construction and furniture and other wood works. With the growth of these sectors and rising income and urbanization the demand for chipboard also increase. Thus the demand will be sufficient to cater the production of the chip wood making plant.
4. Supply of Raw Material: The main raw material, which are available locally are:
- Eucalyptus tree
- Glue
Production Process and Technology: Chipboard making process involves basically cleaned eucalyptus trees from foreign matter, filling the tree into hopper, formation of by glue of the board, drying, cutting in to prescribed dimension and end sealing.
a) Machinery and Equipment
- Waste separator (cleaning machine)
- Wood feed hoper
- Slab forming machine
- Cutting and sealing machine
The machinery and equipment are imported.
6. Estimated Investment: The total investment cost is estimated to be Birr 12 million including building, machinery and working capital.
7. Location: The chip wood making plant has to be near the availability of eucalyptus tree forest like Debre Tabor town.