Acetate

36. PROFILE ON THE PRODUCTION OF CELLULOSE ACETATE

36-1 TABLE OF CONTENTS

PAGE

I.

SUMMARY

36-2

II.

PRODUCT DESCRIPTION & APPLICATION

36-3

III.

MARKET STUDY AND PLANT CAPACITY A. MARKET STUDY B. PLANT CAPACITY & PRODUCTION PROGRAM

36-3 36-3 36-6

IV.

MATERIALS AND INPUTS A. RAW & AUXILIARY MATERIALS B. UTILITIES

36-6 36-6 36-7

V.

TECHNOLOGY & ENGINEERING A. TECHNOLOGY B. ENGINEERING

36-8 36-8 36-9

VI.

MANPOWER & TRAINING REQUIREMENT A. MANPOWER REQUIREMENT B. TRAINING REQUIREMENT

36-13 36-13 36-15

VII.

FINANCIAL ANLYSIS A. TOTAL INITIAL INVESTMENT COST B. PRODUCTION COST C. FINANCIAL EVALUATION D. ECONOMIC & SOCIAL BENEFITS

36-15 36-16 36-17 36-17 36-19

36-2 I. SUMMARY

This profile envisages the establishment of a plant for the production of cellulose acetate with a capacity of 260 tons of per annum. Cellulose acetate is spun into textile fibers. It is used also as a component in some adhesives, as a frame material for eyeglasses, in the manufacture of playing cards, tool handles, film for photography or food wrapping, wound dressings, personal hygiene products, absorbent cloths and wipes, specialty papers, and filter media, including cigarette filters. Since there are no local producers of cellulose acetate, the demand for the product is entirely met through import. The present (2012) demand for the products is estimated at 182 tons per annum. The demand is projected to reach 258 tons and 345 tons by the year 2018 and year 2023, respectively.

The major raw materials required by the project are cotton lint, sulfuric acid and glacial acetic acid. Cotton lint and sulfuric acid are locally available while glacial acetic acid has to be imported. The total investment cost of the project is estimated at Birr 16.31 million. From the total investment cost the highest share (Birr 10.68 million or 65.54%) is accounted by fixed investment cost followed by initial working capital (Birr 4.05 million...