This profile envisages the establishment of a plant for the recycling of waste paperwith a capacity of 210 tonnes per annum. The present demand for the proposed product is estimated at 4,179 tonnes per annum. Thedemand is expected to reach at 29,575 tonnes by the year 2022. The plant will create employment opportunities for 52 persons. The total investment requirement is estimated at about Birr 2.96 million, out of which Birr519,620 is required for plant and machinery. The project is financially viable with an internal rate of return (IRR) of 22 % and a netpresent value (NPV) of Birr 1.58 million discounted at 8.5%.
II. PRODUCT DESCRIPTION AND APPLICATION
Waste paper recycling is a process by which waste paper, agricultural residues, wastecotton, old rugs, tailor cuttings, waste jute, hosiery cuttings, are processed together withsome chemicals like caustic soda, dry staffs, resin, etc., to produce file covers, greetingcards, writing paper, paperboard, filter paper, drawing paper, filter paper & padsduplicating paper, tissue paper etc.
III. MARKET AND PLANT CAPACITYA. MARKET STUDY1. Past Supply and Present Demand
Repulped waste paper is used as a drawing paper, permanent document paper, filter paperand pads, file covers, duplicating paper, tissue paper and for exclusive greetings. Demandfor the product is met both from domestic production and import. Table 3.1 presentsquantity of local waste paper consumed by the paper and printing industry during 1998/99 –