1. Product Description:- The word plywood designates a wood panel of three or more layers or veneers (plies) bonded together usually with the grains of adjacent veneers running at right angles to each other. The advantage of plywood over solid wood is its near uniform distribution of strength properties along the length and width of the panel. Plywood is used in the construction and furniture industries. It is widely used in cabinet making, decorative wall paneling and partition wall and as door skins or cover.
2. Rationale:- Plywood is made from timber and this implies that there must be a sufficient supply of timber to establish a plywood making plant. However, the required timber could be grown through tree plantation projects which will augment the existing supply of natural timber. Even the existing tree stands found in many localities of the Region can supply the required input for the proposed plant. The plywood need of the Region is currently met through imports from Addis Ababa and from abroad via Addis Ababa. The current consumption of the product especially in the furniture and joinery industries in quite substantial. With increasing urbanization and its concomitant expansion of the furniture industry, the demand for plywood will increase in the coming years. To promote self-sufficiency, the Amhara Region should promote the establishment of a small plywood factory in the Region.
3. Market Potential:- The small furniture and joinery units scattered throughout the Region use plywood and this plywood is brought from Addis Ababa, most of it imported from abroad. Though it is difficult to quantify the plywood consumption in the Amhara Region, informed judgment indicates about the existence of a demand which can absorb the production of a small size plywood making plant.
4. Source of Raw Material:- Localities where the plant will be established and imports for adhesives and chemicals.
5. Process and Technology:- Timber is received from the forests in the form of logs. The logs are put under water in a pond if possible or they are kept wet by water spray, to prevent decay and splitting and to keep them in a condition suitable for peeling. The logs are cross cut into bolts of suitable length and then graded according to their quality and are ready for peeling. Veneer cutting may be done by peeling, slicing or sawing. The wet veneers are fed to the clipping machines to be cut to the desired width and also to remove such defects as knots, wormudes and discolouration. The remaining processes are drying, preparation of veneer, gluing, pressing and finishing.
Main plant and machinery include cross cut saw, veneer rotary lathe, veneer knife grinder, veneer drier, electric hoist, veneer slicer, wet veneer clipper, dry veneer clipper, veneer joiner, glue mixer, hydraulic hot press, drum sander, glue sprader,
6. Estimated Investment:- For a plant which will produce about 1000 m2 plywood per month, the estimated investment will be as follows.
§ Building/shade 1800m2 at Birr 1000/m2 = Birr 1,800,000
§ Machinery = Birr 3,840,000
§ Working Capital = Birr 500,000
6,140,000
7. Benefits:- Saves foreign exchange and regional financial resources, promotes the development of the furniture and joinery industries, introduces new skills and technology, utilizes existing natural resource, stimulates the development of tree plantations.
8. Location:- Bahir Dar, and other towns around which there are natural and man-made forests.