PROJECT PROPOSAL FOR EXPANSION OF

GENERAL PACKING MATERIAL (PP BAG AND

PLASTIC PACKING) MANUFACTURING
FACTORY

PROJECT TO BE IMPLEMENTED IN GELAN TOWN

OF OROMIA REGION

PROMOTER: - ZEMENU DUBRE BEJIGA

May, 2022

Gelan,Oromia

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Contents
Executive Summary....................................................................................................................................................... 4
1. Introduction................................................................................................................................................................. 5
1.1 Background................................................................................................................................................................ 5
1.2 Profile of the Promoter......................................................................................................................................... 5
1.3 Purpose of the document..................................................................................................................................... 6
1.4. PRODUCT DESCRIPTION AND APPLICATION............................................................................................6
1.5. Functions performed by packaging................................................................................................................ 8
1.6 Objective of the Project......................................................................................................................................... 8
1.7 The Socio - Economic Significance of the Project.......................................................................................8
1.8 Location and Premises Required................................................................................................................... 10
1.7.1 Location................................................................................................................................................................ 10
1.7.2 Premises required and land use................................................................................................................. 11
2. MARKET STUDY, PLANT CAPACITY AND PRICING...................................................................................12
2.1. MARKET STUDY................................................................................................................................................... 12
2.1.1 Demand factor for Plastic based packing products.............................................................................12
2.1.2 Market Analysis for `Plastic packing products in Ethiopia..............................................................14
2.2. PLANT CAPACITY AND PRODUCTION PROGRAM.................................................................................19
2.2.1 Plant Capacity..................................................................................................................................................... 19
2.2.2 Production Program........................................................................................................................................ 19
2.3 PRICING AND DISTRIBUTION......................................................................................................................... 19
2.4 Market Share.......................................................................................................................................................... 19
3. TECHNICAL STUDY............................................................................................................................................... 20
3.1 Product Mix of the Project................................................................................................................................ 20
3.2. Raw Materials and Inputs.............................................................................................................................. 20
3.3 Technology, Process Flow and Production Process.............................................................................21
3.4. Machinery and Equipment Requirement................................................................................................23
Process............................................................................................................................................................................. 27
Tape Extrusion Line.................................................................................................................................................... 27
Lamination or extrusion coating........................................................................................................................... 28
Weaving........................................................................................................................................................................... 28

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Printing............................................................................................................................................................................ 29
Cutting, Stitching & Finishing.................................................................................................................................. 29
3.5. Civil Engineer Building and Civil Works....................................................................................................29
3.6 Utilities...................................................................................................................................................................... 30
4. ORGANIZATION, MANAGEMENT AND MANPOWER...............................................................................31
4.1 Duties and Responsibilities of Each Division,...........................................................................................31
4.1.1 The General Manager’s Duties and responsibilities............................................................................31
4.2. Administration Department............................................................................................................................ 32
4.3. The Marketing Department............................................................................................................................. 32
4.4. The production Department........................................................................................................................... 32
4.5. Manpower Requirement................................................................................................................................... 33
4.6. TRAINING REQUIREMENT.............................................................................................................................. 34
5. FINANCIAL REQUIRMENT AND ANALYSIS.................................................................................................35
5.1. Total Initial Investment Cost...........................................................................................................................35
5.1.1. Fixed Investment............................................................................................................................................. 35
5.1.2. Initial Working Capital................................................................................................................................... 38
5.1.3. Pre-Service Expense....................................................................................................................................... 38
5.1.4 Annual production Cost at Full Capacity.................................................................................................39
5.2 Financial Analysis and statements................................................................................................................ 40
5.2.1 Underlying Assumption.................................................................................................................................. 40
5.3. Sources of Fund.................................................................................................................................................. 41
5.4 Balance Sheet (Beginning)................................................................................................................................ 41
5.5 Income/Loss Statement..................................................................................................................................... 42
5.7 Profitability............................................................................................................................................................. 43
5.8 Pay-Back Period.................................................................................................................................................. 43
6. ENVIRONMENTAL IMPACT OF THE PROJECT...........................................................................................44
6.1 Environmental impact Assessment of the Project..................................................................................44
6.2 The Environmental impact of Vinyl Chloride............................................................................................44

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Executive Summary
1 General packing materials Products Manufacturing
Project Type
2 Project Owners
3 Nationality
4 Project location
5 Project Composition
6 Premises Required
7 Startup Capital
8 Employment
Opportunity
Factory Like PP Sheets, Bags, Mats and other
ZEMENU DUBRE BEJIGA
Ethiopian
Oromia region Gelan Town
Produces Plastic products like PP Sheets, tiles, Bags,
Mats and other packing materials products
10,000 m2
The total amount of initial investment capital money that is
required to establish the envisaged factory estimated to be
Birr 76,188,873.00. From this, 70% or 53,332,211 birr will
cover by bank loan and 30% the promoter of the project will
contribute 22,856,662 birr.
The total manpower requirement of the project is
estimated at about 225. Total permanent workers are

111 and temporary 62 workers. From 63 permanents, 13

are skilled, 40 are unskilled, and from 112 casual

workers, 24 are skilled and the remaining 38 are

9 Benefits of the Source of government revenue through taxation and
unskilled.
project creates employment opportunity for 225 individuals.
10 Production at full PP Sheets and tiles 25,000,000M 2; PP Bags 10,000 PCS &
capacity
PP Mats 10,000M2.

11 Market Share The project will supply 30% of its product for domestic
market and 70% of its product for export to
international market.

12 Technology The project employs High speed extrusion, double stage

draw, tape stretching and winding lines incorporate
state-of-the-art technology to produce PP tapes.

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1. Introduction

1.1 Background
Ethiopia is one of the East African countries with the diversified climatic conditions,
natural scenery and resource bases. Currently the country has a total population of about
80 million of which more than 30 million are found in Oromia regional state. Oromia is one
of the regional states of Ethiopia with very fertile land, very conducive weather condition
for both crop production and animal husbandry.
The government of the country has been excreting its maximum effort to expand
investment opportunities in the country by designing different policies and strategies that
will facilitate investment through attracting both domestic and foreign investors.
Likewise, the Oromia regional state government has been working day and night to make
poverty history by making its door open to investors both (domestic and foreign) to come
and invest in the region. Therefore, it is this many opportunities and cumulative
experience which makes the owner of the project promoter motivated to participate in her
home country Ethiopia in the manufacturing sector especially on plastic products.

Fallowing the nation’s economic growth the manufacturing sector is booming result in
bridging the market demand gap of such products in the country, The Government is
highly inviting the private sector to work on import substitution is highly motivating the
private sector to respond to the government invitation, there by contributing their share
to the development process.

1.2 Profile of the Promoter

The promoter of the project ZEMENU DUBRE BEJIGA is an indigenous partnership
which established in Gelan town administration and the region which in turn contribute
its role by participating in the renaissance of their country. The promoter does have ample
experience, accumulated diversified-skills in the area, and adopted working with many
people. Thus, these experiences primarily motivated the promoter to change its project to
the plastic products.

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1.3 Purpose of the document
The objective of the feasibility study is primarily to facilitate potential entrepreneurships
in project identification for investment. The project feasibility may form the basis of an
important investment decision. The document/study covers various aspects of project
concept development, start-up, production, marketing, and finance and business
management. The document also provides sect oral information, brief on Government
policies and international scenario, which have some bearing on the project itself. This
particular feasibility is regarding the establishment of plastic products manufacturing
industries.

1.4. PRODUCT DESCRIPTION AND APPLICATION

One of the growing applications of plastic materials is packing. Among the various types of
plastic materials polypropylene (PP) sheets, PP woven bags, sacks and other plastic
products are extensively used in Plastic Product industry due to their wide variety of
usage, flexibility and strength. Woven polypropylene bags are specializing in packing and
transporting bulk commodities. Due to strength, flexibility, durability and lower cost,
woven polypropylene bags are most popular products in industrial package, which are
widely used in packing grain, feeds, fertilizer, seeds, powders, sugar, salt, powder,
chemical in granulated form. The advantages of PP woven bag include:
 Very affordable, lower cost;
 Flexible and high strength, persistent durability;
 can be printed on both sides;
 Can be stored in an open area due to UV-stability, up to 6 months;
 Water and dust proof design due to inside PE liners or laminated on the outside;
hence,
 packed materials are protected from outside humidity;
 Twisted weave and anti-skid print to prevent slipping; and
 Fully recycled.

As compared to jute and paper bags, the polypropylene (pp) bags have higher mechanical
strength, non- contaminant, excellent appearance, flexible to be manufactured at customers

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needs (preferred color and texture), easy to print logos, symbols or writings, versatility of
the product, water proof, etc Woven fabric is a textile formed by weaving. It is produced on
a loom, and made of many threads woven on a warp and a weft. Woven
polypropylene/HDPE bags or simply woven PP/HDPE bags are considered to be the
toughest packaging bags, widely used to pack materials for grain, milling and sugar
industry.

 HDPE/PP oriented strips are becoming increasingly popular in India & have caught the eye
of many end users for their requirement of packing materials. They have become popular
on account of their inertness towards chemical, moisture & excellent resistance towards
rotting & fungus attack. They are non toxic. Lighter in weight & have more advantages than
conventional bags. PP/HDPE woven sacks laminated with LDPE/PP liner have wider
applications. HDPE woven sacks are much stronger & can withstand much higher impact
loads because of HDPE strips elongation at break is about 15-25% as compared to 30% of
Jute. These sacks are much cleaner & resist fungal attack. Jute prices are very unstable in
the market since Jute is an agriculture product. These sacks have many advantages over
other conventional sacks materials & are quite competitive in price.

 HDPE/PP Woven bags ideally suitable for Building Materials, Cement, fertilizers, Urea,
Potash, plastic, polymers, plastic pellets, etc. Food grains: Rice, Wheat, Pulses, Tea, Coffee,
Beans, Peanuts, Sand, Sugar. Chemicals: Pigments, Dyestuffs, oxides, barytes, alumina,
hydrates, ores, gypsum, feldspar, mica, Lime, limestone,

 Woven Packaging Fabrics, Woven bags and fabrics are often used as an industrial
packaging material. The packaging bags and fabrics are available mostly in HDPE (High
Density Polythene) and PP (Polypropylene). Depending on end use these are either
laminated, or supplied without lamination. These materials are valuable for applications in
many different industries. Any entrepreneur venture into this field will be successful.

As stated earlier, the use of plastics is increasing all the time as they replace materials such
as metal, wood, paper, ceramics and glass in a wide variety of uses. More over the overall

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demand and local supply gap that prevails in the market remains largely unmet which also
provides opportunities for entering in to this business.

The government of Ethiopia has a conducive investment polices and guidelines that
promote the private sectors involvement in the economic development through the
various investment and business endeavors.

1.5. Functions performed by packaging

Packaging performs many special important functions as an integral part of a final
product. These functions are:

o It protects the quality of the product

o It provides consumers with convenience
o It conveys a certain image
o It provides information with regards to the product
o It adds value to a product through differentiation

1.6 Objective of the Project

The main objective of this factory is to manufacture, cost effective, market oriented, client
based and quality PP Sheets, Bags, tiles & Mats for local market and international market.

1.7 The Socio - Economic Significance of the Project

The envisaged project deemed to contribute to the Socio - economic development of the
nation in general and regional in specific with following ways:

1. Value Add

In the production of PP Sheets, Bags, tiles & Mats from virgin resin and recycling wastage as
raw materials, the project will add value in the plastic packing industry.

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2. Contribute to the Nations Development

By supplying customer oriented, high quality and cost-effective plastic packing products, it
will satisfy the demand for different purposes like oil factory, agriculture, food factory
super markets and boutiques.

Source of Revenue

As public policy of any nation, the government collects different forms of taxes from
different business organization and individuals. Among the different forms of taxes,
business income taxes, VAT and payroll tax are collected from undertaking business
activities. Therefore, the project will serve as sources of revenue for both the region and
nation in whole.

3. Employment opportunity

One of the problems that our country faced is unemployment. Therefore, the current
objective of the government is working on tackling the problem of unemployment and
fostering the development process either through creating self employment in other
organization. Hence, this project will hire 185 citizens

4. Save / Generate the Country Foreign Exchange

Some types of the envisioned products (Produced by the project) are imported from
abroad. By producing in Ethiopia, the factory will save the foreign currency of the nation.

By minimizing the market demand and supply gab for these products, the factory will help
to reduce the nation’s foreign exchange cost to import these products. This will save the
foreign exchange resource of the nation.

Moreover, the nation can generate foreign currency when the factory start exports these
products to international market.

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5. Benefit For The Local Community

As a corporate responsibility, the factory will engage in different development activities on

the surrounding areas this will better worth the community and contribute for the
development of the nation.

6. Environmental benefits

The factory uses both virgin resins and recycling of wastage plastic materials, the factory
will benefit the region as well as the region in environmental conservation.

7. Stimulate The Local Economy

This factory has positive externality in the district that will encourage the economic
movement of local economy. There will be economic relationship and transactions among
different actors.

8. Technology Transfer

By manufacturing pp sheets, PP packing products, the project will train and develop the
capacity of the technical staffs. By doing this, the company will add value in technology
transfer for the nation/region in this area.

Generally, the direct benefits of a PP Sheets and packaging material manufacturing would
include creation of employment opportunities for the youths, income generation on the
part of enterprises through value addition for domestic consumption coupled with
potential increase in export activity for made-in-The Ethiopia products to international
markets. The indirect benefits of the factory are expected to contribute to poverty
reduction and sustainable environmental management.

1.8 Location and Premises Required

1.7.1 Location
The envisioned project is located in Oromia regional state, Gelan town, which is around 25
kms far from the Addis Ababa. The main justifications behind the selection of this location
are:

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 Strategically located to the central and largest market of the nation (Addis Ababa)
 Relatively advanced development in infrastructure (Power, Water, Telephone
internet, road etc.
 All road to the nearest market outlets
 Availability of huge skilled labor force
 Environmentally fit to plastic products manufacturing

1.7.2 Premises required and land use

For the proposed set up of PP Sheets, Bags, tiles & Mats manufacturing plant, 10,000
square meters is required. This land' requirement includes space for the installation of
plant and machinery, management office and store for finished product and parking.

No. Descriptions Required area in M2

1 Production hall 4000

1.1 Workshop 3,000

1.2 Inspection room 1,000

2 Warehouse 2,000

2.2 Raw materials and inputs 1,000

2.3 Finished products 1,000

3 Office and Showroom 2,000

3.1 Office 1,000

3.2 Show room 800

3.3 Worker canteen 200

Walk way and loading unloading and green
4 area 2,000
10,000
Total

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2. MARKET STUDY, PLANT CAPACITY AND PRICING

2.1. MARKET STUDY

The PP Sheets, Bags, tiles, Mats and other plastic products manufacturing industry is
prominent in every aspect of modern life as new polymers and composite materials are
introduced by the chemical industry, the industry is constantly refining and adding
products to those that have been made over many decades. In its early years, the plastics
industry greatly benefited from the substitution of plastic for other materials including
various materials wood, paper, cardboard and natural fibers, etc. However, as a mature
industry, the possibilities for substitution are limited, leading to greater dependence on
economic growth and the expansion of demand in packing products existing markets, The
industry is also vulnerable to volatility in the global price of oil and gas feed stocks, used
by the chemical industry to produce its raw and semi-finished materials.

The leading markets for plastics are in packaging, building, construction, and the
automotive/transport industries, all of which have generally been buoyant. However, a
number of their industries which use some form of plastic, e.g the textile, clothing,
electrical, electronic, mechanical engineering and agricultural industries, have
experienced a profound downturn in demand, as they struggle to adjust to changes in the
market for their products and against a rising tide of imports.

2.1.1 Demand factor for Plastic based products

Plastic products are influenced by general economic conditions as well as demographic
factors, The main demand factor for plastic packing products are population and overall
economic growth of the nation that reflects from booming in the agriculture sector,
industry sector, construction sector and infrastructure development of the government
increasing the market demand and supply of plastic products. The main demand factors
for plastic products are discusses below:

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1. Fast GDP Growth

The Ethiopian economy has been experiencing dynamic and double-digit growth that
experienced annual average growth of 11.4% in past 8 years. According to Ministry of
Finance and Economic Development (MOFED). The forecasted economic growth (GDP at
constant basic price) for the first GTP period is estimated to be 10.4%. As per the estimates,
annual growth rates of the major sectors, i.e. Agriculture, industry and service were 7.6%,
10.6% and 13.0% respectively and their shares out of the total GDP were 42%, 13% and
45%, respectively. This Continuous and a –two-digit high growth would place Ethiopia
place Ethiopia among the fast-growing countries in the world.

As sectors of the economy, the agriculture and construction sector also grows with double
digit with the average annual growth 10.31% and 12% respectively in the past 8 years. As
shown in the table below the growth of the sectors directly related with the economy as
parts of the economy.
Table Major Economic Indicators
Trends in Performance of the Economy: Growth Rates (%)
Item 002/ 2003 2004 2005 2006 2007 2008/ 2009
03 /04 /05 /06 /07 /08 09 /10
GDP in 1999/00 Prices -2.1 11.7 12.6 11.5 11.5 11.6 10 10.4
Agriculture 10.5 16.9 13.5 10.9 9.4 7.5 6.4 7.6
Industry 6.5 11.6 9.4 10.2 10.2 10.4
O/W: manufacturing 0.8 6.6 12.8 10.6 8.3 7.1
Construction 13.6 19.5 7.5 10.5 10.9 11.3 11.7 10.9
Services\ 6 6.3 12.8 13.3 14.3 17
O/w Banking and insurance 10.8 19.7 24.2 28.7 15.1 24.9 16.5 13.7
Distributive services 5.5 6.4 14.7 14.2 16 15.2
Other services 6.5 6.1 10.9 12.5 13.1 14.2
Real GDP per capital GDP -4.6 10.7 9 8 7.5 7.6
Inflation 15.1 8.6 6.1 10.6 15.8 25.3

Source: MOFED & NBE

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This fast growth of these sectors resulted from different bodies like government, non
government and private activates in Ethiopia is growing in the fastest rate. Moreover, the
current five years Ethiopia Growth and transformation plan will expand the current
agriculture, infrastructure, residential and buildings in paramount level.

In another product line, the fastest economic growth will increase the income of the
citizens through that it will strength the purchasing power that boost a demand for basic
goods like plastic based products.

2. Population and Population growth (Demography)

The rate of growth of the urban population is increasing from year to year. The latest
report of the united fund for Population Agency revealed that Ethiopia’s population has
reached 90 million, which puts Ethiopia as the second most populous country in Africa.
According to the Central Statistics Authority (CSA), current population growth is
estimated to be 2.8% per annum, and the growth rate is expected to remain above2% for
the next 20 years. Rural population is growing at about 3.0% while the urban population is
growing at about 4.3% . Total population is projected to reach 129 million by 2030. In
Ethiopia, of the total population, about 16.0% is estimated to reside in the urban areas.
The trend suggests that the size of urban population is likely to continue to grow at a high
speed in the future .the share of urban population will rise from 16.0% in 2005 to about
23% by 2030. Nearly 30 million of the total 129 million will live in cities and towns by
2030.

In this regard Addis Ababa has the largest population in the nation (which is estimated to
be more than 3.5 million).

In general having a huge population is a potential demand for business including plastic
based products.

2.1.2 Market Analysis for `Plastic products in Ethiopia

According to year 2008 CSA report, there were 42 factories engaged in the production of
plastic and of which 4 are public owned and the remaining 38 are in private ownership.
The major enterprises that produce PE films/sheets are: Ethiopian plastic Factory (EPF),

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MA-Thermoplastic and Melamine Industrial plastic, Blue Nile P.P and craft Paper Bags
Manufacturing, Dashen Plastic, Kurtu International, Oxford industries Private Ltd, Inova
Packaging and Unity Trading Plastic Factory. Based on the information from Addis Ababa
City Administration investment office, around 170 investment licenses granted for
investors planning to engage on small, medium & large-scale plastic production. The
annual domestic production of plastic products presented in the table below.

Table: Annual domestic Production of plastic products

Products Unit 200/03 2003/04 2004/05 2005/06 2006/07

Plastic crates PCs 301,00 185,000 200,00 1,297,000 652,000
Plastic Pairs 5,989,671 8,352,492 6,893,525 8,469,260 15,901,540
footwear
Plastic soles Pairs 3,443,200 3,486,978 2,140,771 4,837,168 2,696,625
Source: CSA annual statistical abstract

In order to reduce their production costs May plastics factories in Addis Ababa have
started to use plastic waste in the manufacture of new products. Because of the large
number of poor consumers, the demand for cheaper recycled plastic products is much
higher than for products made of virgin materials. The products made by recycled plastic
materials can meet the quality standard and the price required by this group of
consumers.

Because of a growing demand for plastic waste as a raw material, most of the plastic waste
does not end up in the waste cycle, but goes directly in to the plastic recovery system.
Since there are no formal systems for collecting plastic waste, the demand is met by the
informal sector who acts as suppliers of plastic waste to the plastics factories in the city.
Moreover, the impression is that the demand is higher than the supply, as some of the
plastics factories had considered importing plastic waste materials from Italy since there
are not enough materials in Addis Ababa to meet the growing demand for plastic waste.
(The company I’m working with owns a plastic plant).

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a. Ethiopia Import of Plastic Products

Ethiopia imports mainly the following plastic products and raw materials under HS code
39; Polyethylene, Polypropylene, Tubes pipes , hoses, ethylene-vinyl acetate copolymers,
Floor, plates, bottle performs, Alkyd resins, Urea resins, Polyesters, tableware &
kitchenware etc. During the fiscal year 2008, the country imported Birr 3.5 billion value of
Plastics related articles. The main raw material for the plastic industry polyethylene and
polypropylene accounts the around 28% of plastic related products import followed by
Tubes, pipes and hoses.

Plastic industries are the major consumers of imported plastic raw materials while
companies engaged on manufacturing of bottle water, pharmaceuticals, detergents, dairy
processing , paints, cosmetics and to their products utilize both imported and locally
produced plastic products for packaging purpose.

Table: Major imported items of Plastics and articles thereof (> = 25 million birr import value)

HS Code Items Net mass CIF Value %

(kg) (ETB) shar
e
39012000 Polyethylene having a specific 31,258,637 509,281,756 14%
gravity >= 0.94, in primary
forms
39021000 Polypropylene, in primary 20,402,520 326,876,819 9%
forms
39172300 Tubes, pipes and hoses, rigid, of 8,967,536 305,055,219 9%
other plastics, nes
39172900 Polyethylene having a specific 10,086,130 215,745,326 6%
gravity <0.94, in primary from
39011000 Other polymers of ethylene, in 11,474,969 189,883,153 5%
primary forms, nes
39013000 Ethylene-vinyl aceate 7,508,594 110,904,908 3%

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 copolymers, in primary forms
39173900 Other tubes, pipes and hoses , 4,934,134 107,773,005 3%
nes
39269090 ---Other Articls Of Plastics, Nes 3,013,204 102,504,477 3%
39174000 Fittings, for tubes, pipes and 2,374,222 85,910,942 2%
hoses, of plastic
39076000 Poly(Ethylene Terephthalate), 6,196,058 85,751,755 2%
In primary Forms
39072000 Other polymers of ethylene, in 3,779,308 84,632,158 2%
primary forms, nes
39042200 Plasticized polyvinyl chloride 5,534,550 82,476,515 2%
mixed, in primary forms
39181090 ---Floor…. Coverings Of 9,627,611 71,769,159 2%
Polymers Of Vinyl Chloride Nes
39172100 Tubes, pipes and hoses, rigid, of 1,548,752 67,585,053 2%
polymers of ethylene
39173300 Tubes, pipes and hoses, not 2,216,359 66,284,567 2%
reinforced, with fittings
attached, nes
39202000 Plastes…, of polymers of 1,626,742 55,084,587 2%
propylene, not reinforced, etc
39219000 Other cellular plates, stips…, of 2,678,953 49,992,975 1%
plastics, nes
39232990 ---Other articles of plastics 1,268,205 47,899,736 1%
39233010 --- Bottle Performs Of Plastics 2,056,099 43,765,725 1%
39095000 Polyurethans in primary forms 1,899,463 40,709,880 1%
39075000 Alkyd resins, in primary forms 1,934,549 35,568,676 1%
39091000 Urea resins; thiourea resins, in 2,678,664 34,532,893 1%
primary forms
39079900 Polyesters, in primary forms, 1,715,700 33,200,274 1%

17
 nes
39199000 Other self-adhesive plates, tape, 944,650 27,418,889 1%
strip, foil… of Plastics, nes
39241090 ---OTHER tableware 2,777,916 27,286,429 1%
kitchenware … of plastics
39041000 Polyvinyl chloride, not mixed 2,084,990 25,521,911 1%
with other substances, in
primary forms
Total imported 185,319,76 3,519,573.08
As figure below shows the major sources of plastic related product imports in 2008 were
China (19.7), Saudi Arabia (15.2), India (11.1%) , Thailand (8.7%),R, Korea (7.5%) and
United Arab Emirates (7.3%) in order of their importance.
Figure 2: Country of origin for Plastics and articles thereof import

18
2.2. PLANT CAPACITY AND PRODUCTION PROGRAM
2.2.1 Plant Capacity
Based on the assumption of machine capacity, employee 2 shift systems per 8 hrs and 300
working days in year the factory will produce a total of different plastics as indicated in
the table below:
2.2.2 Production Program
Considering the gradual growth of demand and the time required to develop the required
skill the rate of capacity utilization during the first, second and third year of production
will be 60%, 80% and 100% respectively. Full capacity utilization will be reached during
the third year of operation.
Table Production Programmer
Description Year
1 2 3_10
Capacity utilization (%) 60 80 100
PP Bags (pcs)
8,000,000 10,666,667 13,333,333
PP Sheets(M ) 2
30,000,000 40,000,000 50,000,000
PP Mats(M2)
20,000,000 26,666,667 33,333,333

2.3 PRICING AND DISTRIBUTION

It would be important to examine the possible level of price based on the competitor’s
action. In this connection, the existing average retail prices of similar factory were
assessed for the benefit of comparison. Based on the existing price in the market the
envisioned factory sated the price.

2.4 Market Share

The project will supply 30% of its product for domestic market and 70% of its product for
export to international market.

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3. TECHNICAL STUDY

3.1 Product Mix of the Project

Plastic is a common name for Polymers: materials made of long strings of carbon and
other elements. Each unit in a string is called a monomer, and is a chemical usually
derived from oil. There are many different types of plastic, depending on the starting
monomer selected, the length of polymer chains, and the type of modifying compounds
added. Each plastic is developed for a special purpose. However the varied use of plastic
in our everyday life has made it an integral component in almost everything. Plastic is
used in everyday items like ballpoint pen, buckets, cups, glasses water pipes, plastic bags
to items of engineering excellence like cars and airplanes. According to some experts,
around 350 kilograms plastic is used in every car manufactured in Germany. With such a
high ratio of usage in developed countries, plastic has become a cheap but an important
commodity.
Most of the plastic products are manufactured using two types of technologies. Blow
molding and injection molding. The proposed project envisages the setup of a blow
molding products manufacturing business. The setup will produce plastic products i.e.
tumbler, bottles, canes, drums, water coolers etc. The manufactured products will then be
sold in the local market to generate revenue. The proposed project is assumed to
manufacture PP Sheets, Bags & Mats:
It is desirable to have a vast array of products where most of the plastic manufacturers
have at least 20 to 25 different product categories running in their production line, but
initially the entrepreneur, needs to be careful in choosing the product mix of the right able
to cover the mold costs required for each separate item.

3.2. Raw Materials and Inputs

The main and direct major raw material required for production of poly propylene weaven
bag are polypropylene resin, also ink and solvent are auxiliary materials for printing
purpose. All the raw materials have to be imported.

20
3.3 Technology, Process Flow and Production Process
3.3.1. Technology

The project employee High speed extrusion, double stage draw, tape stretching and
winding lines incorporate state-of-the-art technology to produce PP tapes. The lines are
designed to meet the highest performance and quality requirement with maximum
efficiency and flexibility while using minimum raw material and energy.
3.3.2. Manufacturing Process

PP Woven Sacks are generally manufactured and printed as per the Customers’
demands/needs. The end users adopt different kinds of Color Combinations and Designs in
the Printing of these Sacks to convey the massage(s), characteristic(s), quantity & quality
related details and handling instructions etc. For some kind of specific applications like
filling of Hydroscopic Materials e.g. Chemicals, Fertilizers, Food Products etc. these Woven
Sacks are laminated also.

The Process of manufacturing PP Woven Sacks involves following three steps:

 Extrusion
 Weaving

 Finishing & Stitching

Extrusion
The process of manufacturing PP woven bags involves mixing raw materials starting with
PP or HDPE pellets and other additives, extruding the raw materials into a yarn PP resin is
heated with feeler of CaCo3 and pigment, melted and extruded as a flat film. It is then slit
into tape yarn by the slitting unit and stretched and annealed. Next, a take-up winder winds
the heat oriented tape yarn onto a bobbin.

The Raw Material (PP & Filler) in the Granules form is fed to a Raffia Tape Manufacturing
Plant to obtain the Raffia Tapes of PP. The Raw Material Mix is prepared in a Tray adjacent
to the Feed Hopper. The prepared Mix is sucked in to the Hopper by Vacuum. The Raw
Material Mix is fetched to the Extruder of the Plant; where the same is melt by applying

21
controlled External Heat on the Barrel. The Molten Mass is forced out through a Die Head
into a Cooling Tank, in the form of Sheet/Film. The cooled & solidified Sheet/Film is passed
through the Knifes to obtain Raffia Tapes of higher Denier (a Unit by which the fineness of a
Yarn is measured). High Density Polyethylene (HDPE) or Polypropylene (PP) granules are
first converted in to 2.5 mm wide tapes by Extrusion process. The Raffia Tapes received
from the Plant are stretched and annealed. These are then wound on Cheese Pipes with the
help of the Sets of Winders.
Weaving
Weaving the yarn into a fabric in a process similar to the weaving of textiles. These flat
tapes are then woven into circular fabric by Circular weaving machine. Thus woven circular
fabric is then cut in to required dimension. Thread from the bobbin in the circular loom’s
creel stand is woven into tubular cloth The Weaving of Raffia Tapes into Cloths is carried
out in Circular Looms, which produce Circular Cloth of desired Width. The process of
Weaving is Automatic and Continuous in nature. Numbers of Circular Looms are installed
so as to match the Effective Output of the Raffia Tape manufacturing Plant. The Cloth
produced by each Loom is continuously wound on Rotating Pipes.
Finishing & Stitching

The Rolls of Woven Cloth are carried out to the Finishing & Stitching Section of the Unit.
The Cloth is cut into desired size and the printed. After printing the cut pieces are sent for
stitching. Prior to the stitching of the Cloth, a valve is made in one corner of the cut piece, as
per the Customers specification. The Woven Sacks passed through the Quality Control Test
are bundled in 500 or 1000 Nos. and pressed on a Bailing Press. The pressed Woven Sacks
are wrapped, bundled, packed and dispatched.

The Quality Control checks are carried out at each and every step to avoid rejections. The
parameters pertaining to the Weight, Denier, Bursting Strength etc. are strictly adhered to.

3.3.3. Machinery and Equipment Requirement

Manufacturing process of woven polypropylene woven sacks and fibc bulk bags use only pure
virgin polypropylene resins, and every bag is quality checked before being packed and shipped.

22
Complete quality management systems are strictly followed at each step of the manufacturing
process. This includes tape extrusion, fabric weaving, extrusion lamination, gravure printing, bag
forming, bag sewing, quality testing and customer shipping. We strive to keep up with the latest
requirements of woven polypropylene sacks and FIBC bulk bags to ensure our customers receive
the highest international quality products.

Extrusion & Winding

High speed extrusion, double stage draw, tape stretching and winding lines incorporate
state-of-the-art technology to produce PP/HDPE tapes.
The lines are designed to meet the highest performance and quality requirement with
maximum efficiency and flexibility while using minimum raw material and energy.

Fabric Weaving
High performance circular loom machines are used for producing circular fabric of
PP/HDPE tapes with almost zero defects. Circular looms for PP fabric weaving are a
combination of latest technology with advantages of lower energy consumption. They meet
the widest range of fabric specifications, maximizing productivity and optimizing cost.

23
Bag Conversion
High speed bag conversion lines are used for producing bottom folded and sewn woven
sack made from roll of tubular woven PP/HDPE fabric. These new generation machines are
suitable for conventional bag application and designed for cross cutting the tubular fabric,
bottom folding, sewing and stacking. Their state-of-the-art automated functions result in
consistent quality of cut and sewn bags.

24
Multi Filament Yarn

Multi-filament spin-draw-wind line used offer highly flexible concept of compact melt
spinning lines. Each is uniquely suited to address strategic and operational needs at
optimal cost. They are ideal for production of high tenacity, medium to heavy denier yarn
in small lots to address specific needs or niche applications with ability to quickly adjust to
dynamic market needs.

FIBC Production

FIBC production requires special purpose machines for production. State of the art high
performance automatic fabric cutting machines with the option of spout or profile cutting.
Hydraulically operated baffle panel or profile or hole cutting machines capable of cutting
profiles or round cutouts as per requirement. Webbing or belt cutting machines needed to
be cut belts to required lengths to make lifting loops for the FIBCs.

25
Testing & Packing
All requisite laboratory equipment is utilized for quality checks at each stage of production
to ensure flawless quality to the customers. Bags are checked, sorted and stacked for
proper shipping to customers.

Hydraulic pallet and bale press for systematic and cost efficient storage and transportation,
the finished bags should be pressed and packed properly for protection.

26
Process

Tape Extrusion Line

Complete range of PP & HDPE extrusion lines all with most advanced technological

solution for flat yarn. The machine is designed to offer the customer with

combination of quality and flexibility.

27
Lamination or extrusion coating

Fabric produced may require to be coated. HDPE woven sacks are laminated with

LLDPE/LDPE while in case of polypropylene bags; lamination is done by lamination

grade polypropylene.

Weaving

The process of weaving is automatic and continuous in nature. Numbers of circular

looms are installed so as to match the effective output of the woven sack

manufacturing plant.

28
Printing

Fully computerized printing machines are used to ensure that your sack is labeled

with both accuracy and efficiency. After the printing, the sacks are then transferred

to a different department for stitching.

Cutting, Stitching & Finishing

After dying of fabric is done, it goes to cutting department. Fabric is arranged in

layers & cut according to your product pattern needs. All the body parts such as
front back body, gusset, and handle of a bag are stitched together in stitching
machine.

3.5. Civil Engineer Building and Civil Works

As indicated in part 1, the total requirement for the project is estimated to be 10,000m2.
The buildings are planned to accommodate production houses, storage, office, and other
utility requirements. The floor of the building will be G+0 for production line, product and
raw materials store, G+1 for office and other services.

In general the buildings must be capable of being kept clean and provision should be made
for keeping the sewerages drained out properly and room temperature is attained to keep

29
healthy environment. In most environments, equipment should be totally enclosed in a
light structure: where the climate is suitable. A concrete floor, which can be swept, is
usual. Besides, the loading and offloading areas together with incoming and outgoing
roads are proposed to be paved to ensure a clean environment around the project site.
The site will be encircled by a chain linked fence fastened to concrete posts. The project
construction is designed by professional engineers and construction will be done under
close supervision and collaboration of the engineers.

3.6 Utilities
A number of utilities would be put in place in order to ensure smooth functioning of the
factory. These utilities include:
A. Water Supply,
B. Supplementary Electricity supply,
C. Paved Road Transportation,
D. Drainage Facility
E. Fuel
F. Oil and lubricant

30
4. ORGANIZATION, MANAGEMENT AND MANPOWER
The organizational structure of the project was designed by including all the necessary
personnel under the right division. At the top of the organizational structure, there will be a
general manager with the responsibility of supervising the overall activity of the plant.
Depending up on the nature of the center and the amount of work performed; there will
be auxiliary units under the general manager. Employees under each unit will be
supervised by the unit head that is accountable for the general manager.

General Manager

Production Marketing Administration

Department Department Department

As clearly shown in the organizational structure, of the industry has CEO three
Departments under the general manager, Advisor and the internal Auditing and Inspection.
These departments are the Production Department, The Marketing Department, and The
General Service Department. Under each Department, there are different sections, which
are undertaking different activities.

4.1 Duties and Responsibilities of Each Division,

4.1.1 The General Manager’s Duties and responsibilities
 He will devise policies and strategies that will enable the project to be profitable.
 He will incorporate modern technological innovation that will facilitate the production
capacity of the project.
 He will plan, organize, direct and control the human and non-human resources to
achieve the short and long run objectives of the organization.
4.2. Administration Department
Will responsible for undertaking the following activities;
 Will plan, organize direct and control the financial transaction of the project by using
necessary document.
 Will develop sound financial control system by developing modern financial control
systems.
 Will prepare the annual financial statements and prepare condensed reports for both
the General Manager and other concerned government body.
 Will control the human and non human resources of the project, which include:
effective handling of the different inventories of the project, and devise strategies of
controlling against fraud and damage.

4.3. The Marketing Department

 Will handle the overall marketing activities of the organization, which include planning,
organizing, directing, and controlling.
 Will develop the marketing strategies for future Integrated the project center's
development.
 Conduct both foreign and domestic market research for expanding the sales of the
company
 Will develop effective customer handling strategies

4.4. The production Department

It is the core department of the project as it handles and administer over all the production
scheme of the company and responsible for the following activities.
 Producing production methods, will boost production and proponent.
 Use modern production methods, will boost production and productivities.
 Produce quality product that will enable the center to competent in the domestic
market.
 Control on the quality of raw materials, quality of the product and also the overall
production process.
 Produce products in least so that the profitability of the center is guaranteed.
 Since producing good quality is based on using good input, the department will use
strategies and polices that will link the polices that will link the selected raw materials
production centers with the production center and help in the adoption of new
technologies,
4.5. Manpower Requirement
Science the sector is labor intensive, which participate a substantial number of labors in
Ethiopia, The total manpower requirement of the project is estimated at about 185.
Total permanent workers are 112 and temporary 122 workers. From 112 permanent, 13
are skilled, 40 are unskilled, and from 122 casual workers, 24 are skilled and the
remaining 98 are unskilled. The required human resource would be recruited from the
project area and the nearby towns except for professionals having especial skills.

Table 4.1. Man power Requirement and annual salary

S/N Description No Monthly Annual salary

salary
A PERMANENT WORKERS
1 Factory Manager 1 10,000.00 120,000.00

2 Production Head 1 60,000.00

5,000.00
3 Production supervisor 2 84,000.00
3,500.00
4 Machine Operators & helpers 20 360,000.00
1,500.00
5 Quality Inspectors 6 72,000.00
1,000.00
6 Mechanic 2 31,200.00
1,300.00
7 Marketing Manager 1 90,000.00
7,500.00
8 Sales person 2 60,000.00
2,500.00
9 Administration manager 1 90,000.00
7,500.00
10 HR Personnel 1 30,000.00
2,500.00
11 Nurse 2 48,000.00
2,000.00
12 Guard 4 38,400.00
800
13 Messengers 2 21,600.00
900
14 Driver 5 60,000.00
1,000.00
15 Cleaner 5 36,000.00
600
16 Financial manager 1 90,000.00
7,500.00
17 Accountant 2 84,000.00
3,500.00
18 Cashier 1 18,000.00
1,500.00
19 Purchasers 2 36,000.00
1,500.00
20 Store Keepers 2 36,000.00
1,500.00
 Sub Total 63   1,465,200.00
B CASUL WORKERS
21 Mechanical Engineers 2 15000 360,000.00

 22 Technicians 16 8000 1,536,000.00

 23 Industrial Engineers 2 15000 360,000.00

 24 Civil Engineers 2 15000 360,000.00

25  Electrical Engineers 2 15000 360,000.00

 26 Daily laborers 138   684,000.00

  Sub Total 62   2,149,200

  Employee Benefit (15%)     322,380.00
Grand Total 225.00   3,936,780.00

4.6. TRAINING REQUIREMENT

The production supervisor, 3 quality controllers, 3 shift leaders, 3 mechanics and 3
electricians should be given 3 weeks on - the - job training on production and quality
control, and equipment maintenance by an advanced technician of the equipment supplier
during the erection and commissioning. In addition, 9 production operators should be
given two weeks on - the - job training on operation of equipment by the in - house
skilled technical personnel. The total cost of training is estimated at Birr 198,000.
5. FINANCIAL REQUIRMENT AND ANALYSIS
5.1. Total Initial Investment Cost
The total amount of initial investment capital money that is required to establish the
envisaged factory is estimated to be Birr 76,188,873.00

Table Total initial Investment Capital

SN Description Cost in birr in Br.

1 Land, Building & Construction 14,760,000
2 Machines & Equipments 31,800,000
3 Vehicles 16,560,000
4 Office Equipment 669,600
  Total Fixed Investment Cost 63,789,600
5 Pre-Service Expense 960,000
6 Initial Working Capital 7,811,232
  Total 8,771,232
Subtotal 72,560,832
Contingency 5% 3,809,444
Total Initial investment Capital 76,188,873.00

5.1.1. Fixed Investment

A. Land, Building & Construction
SN Description Total cost in br.
1 Workshop
3,600,000
2 Warehouse 2,640,000
3 Office Building (G+2) 2,400,000
4 Waste Accumulation area 720,000
5 Green Area, Parking and Buffer Zone 1,200,000
6 Fence and others 720,000
7 Site Development 480,000
8 Design and Supervision 1,200,000
9 Land lease initial 1,800,000
Total 14,760,000
B. Machinery and Equipment

SN Item Measurement Qty Unit Price Total Price in

in Br. Br.
1 Double screw extruder Unit 5 1,125,000 5,400,000.00
with power loader
2 Injection Molding Unit 5 250,000 1,200,000.00
3 Blow Molding Machine Unit 5 250,000 1,200,000.00

4 Crusher 14” Unit 5 100,000 480,000.00

5 Molds Unit 10 350,000 3,360,000.00
6 Lathe Machine 8 F1 Unit 5 320,000 1,536,000.00
7 Support structure Set 5 400,000 1,920,000.00
(cutter, batteries, etc.)
8 Mold Unit 7 300,000 2,160,000.00
9 Vacuum Thank Unit 2 980,000 2,352,000.00
10 Hauling Off Unit 2 600,000 1,440,000.00
11 Automatic cutting Unit 2 750,000 1,800,000.00
machine
12 Stacker Set 2 465,000 1,116,000.00
13 Scrap line (Recycling Set 2 750,000 1,800,000.00
machine)
14 Oil-Ink Printer Unit 2 195,000 468,000.00
15 Compressor Set 2 845,000 2,028,000.00
16 Chiller unit Unit 2 425,000 1,020,000.00
17 Generator 1000KVA Unit 2 1,050,000 2,520,000.00
Total     31,800,000
C. Vehicles

SN Description Qty Unit Price in br. Total Price in br. Remark

1 Isuzu FSR Truck 5 1,300,000.00 6,240,000.00 Duty free

2 Worker Service 5 1,450,000.00 6,960,000.00 Duty free

3 Pick up 5 700,000.00 3,360,000.00 Duty free

Total 16,560,000.00
D. Office Equipments

SN Description Qty Unit cost in br. Total cost in br.

1 Managerial chair with Tables 7,000 84,000
2 Secretarial chairs with table 3,500 8,400
3 Office chair with tables 15,000 64,800
4 Computer with its printer 5,000 144,000
5 Shelf 1,500 24,000
6 Telephone machine set 2,000 10,800
7 Filing Cabinets 9,600
8 Assembly chair and table 132,000
9 Decoration (Carpet & Curtain)
120,000
10 Other miscellaneous off
Equipment’s 72,000
Total
669,600
5.1.2. Initial Working Capital
The initial Working Capital is estimated to be Birr. 7,811,232.00

5.1.3. Pre-Service Expense

SN Description Total cost in br.

1 Project proposal study 15,000

2 Environmental impact Assessment 30,000

3 Staff Capacity Building 100,000

4 Promotion and Advertisement 800,000

5 Licensing fee and others 15,000

Total 960,000
5.1.4 Annual production Cost at Full Capacity
I Raw Materials and Inputs

SN Item Unit Qty Unit cost Total cost

measure in Br. in Br.

1 Virgin suspension grade (PP, Ton 11, 9,775,0

PVC & HDDP) 850 500 00
2 Plastic for Recycle Ton 1, 3,850,0
3500 100 00
3 Other Additives Ton 6, 6,252,8
977 400 00
Sub Total 19,607,
800

II Salary and Wage Expenses

As indicated in part 4.2 (Manpower) of this study, the total cost of salary and wage is
estimated to be Br. 3,936,780.00

III Other Operating Expenses

SN Description Annual Cost in Assumption Used
br.
1 Property Insurance 1% of fixed investment
1,272,102 Cost
2 Audit & Legal Fee 100,800 Br. 3,500 per month
3 Uniforms 91,200 200*Br.190
4 Advertisement & Promotion % of sales
960,000
5 Telephone, fax and postal 57,600 Br.2,000 per month
6 Cleaning goods supplies Br.1,500 per month
43,200
7 Maintenance and Repair 2% of the Fixed
2,544,204 investment Cost
8 Stationery and other office Br 1,700 per month
supplies 48,960
9 Electricity 0.45*250,000W per year
201,000
10 Water 144,000 2*3,000m3 per year
11 Fuel 1,113,600 23,200 lit*20.5 per year
12 Oil and lubricant 10% of fuel cost
111,360
13 Miscellaneous Expense 288,000 Br. 10,000per month
Total
6,976,026
5.2 Financial Analysis and statements

5.2.1 Underlying Assumption

The financial analysis of the envisioned electronics products manufacturing project on the
data provided in the preceding sections and the following assumptions.

A. Construction and Finance

Construction period 1.2 months

Source of finance 30% equity and 70% loan

Tax holidays 2 years

Bank interest rate 10%

Utilities and Operation expense Increase 5% per annual after 3rd yr

Wages and Salary increase Increase 5% Per annul after year 3rd yr

Price of wires and cables by 3% after year 3

B. Depreciation

Method Straight Line

Building 5%

Machinery and equipment 10%

Office Equipment 10%

Vehicles 20%
5.3. Sources of Fund

SN Description % share Amount (in birr)

1 Owners share 30 22,856,662.00

2 Bank Loan 70 53,332,211.00

Total 100 76,188,873

5.4 Loan Repayment Schedule

Total Annual Remaining
Year Principal payment Interest (10%)
payment Balance
0 0 0 0 53,332,211

1 5,333,221 5,333,221 10,666,442 47,998,990

2 5,320,000 4,799,899 10,119,899 42,678,990

3 5,320,000 4,267,899 9,587,899 37,358,990

4 5,320,000 3,735,899 9,055,899 32,038,990

5 5,320,000 3,203,899 8,523,899 26,718,990

6 5,320,000 2,671,899 7,991,899 21,398,990

7 5,320,000 2,139,899 7,459,899 16,078,990

8 5,320,000 1,607,899 6,927,899 10,758,990

9 5,320,000 1,075,899 6,395,899 5,438,990

10 5,320,000 543,899 5,863,899 0

5.5 Balance Sheet (Beginning)
Asset
Current Asset Cost in Br.
Cash 11,199,274
Initial Inventory of raw materials and inputs 1,200,000
Total current Asset 12,399,274
Fixed Asset -
Land, Building and Construction 14,760,000
Machineries and Equipments 31,800,000
Office Equipment 16,560,000
Vehicles 669,600
Total fixed Asset 63,789,600
Total Asset 76,188,874
Liability -
Account payable 53,332,212
Owners’ Equity -
Capital 22,856,662
Total Liability & Owners’ Equity 76,188,874

5.6 Income/Loss Statement

Revenue Year 1 Year 2 Year 3
Sales Revenue 179,784,00 239,712,00 299,640,00
0 0 0
Purchase of Raw Material & 121,204,51 161,606,01 202,007,52
inputs 2 6 0
Gross profit 58,579,48 78,105,9 97,632,48
8 84 0
Expenses
- - -
Salary Expense 9,448,27 8,694,0 9,660,09
2 86 6
Other Operating Expenses 6,976,02 6,976,0 6,976,02
6 26 6
Pre-operating Expense 960,00
0 - -
Deprecation Building 738,00 738,0 738,0
0 00 00
Deprecation Machineries 3,180,00 3,180,0 3,180,00
0 00 0
Deprecation Vehicles 3,312,00 3,312,0 3,312,00
0 00 0
Deprecation office Equip 66,96 66,9 66,9
0 60 60
 Interest Expense 5,333,22 4,799,8 4,266,57
1 99 7
Lease Payment 180,00 72,0 72,0
0 00 00
Total Expense 30,194,47 27,838,9 28,271,65
9 71 9
Profit Before Tax 28,385,00 50,267,0 69,360,82
9 13 1
Tax (30%) 8,515,50 15,080,1 20,808,24
3 04 6
Net Profit 19,869,50 35,186,9 48,552,57
6 09 5

5.7 Profitability
According to the projected income statement, the project will start generating profit in the
1st year of operation. Important rations such as profit to total sales, net profit to equity
(Return on equity) and net profit plus interest on total investment (return on total
investment) show an increasing trend during the lifetime of the project.

The income statement and the other indicators of profitability show that the project is
viable.

5.8 Pay-Back Period

The investment cost and income statement projection are used to project the pay-back
period. The project’s initial investment will be fully recovered within 5.1 years of
operation.
6. ENVIRONMENTAL IMPACT OF THE PROJECT

6.1 Environmental impact Assessment of the Project

Environmental aspects are fundamental for the sustainability assessment of the current
and novel designs of plastic related plant. In this regard the factory will undertake a
separate and detail Environmental impact Assessment.

6.2 The Environmental impact of Vinyl Chloride

Virtually no (< 1 ppm) monomer is emitted from the finished product, but monomers can
be released in minute quantities through such activities as burning the polymer.
Monomer emission is always below what are classified as “harmful” levels. Generally
speaking, all manufacturing processes generate emission. Studies have sampled vinyl
chloride levels in the air near plastic factories. They demonstrated that levels were lower
than the worker health protection standards set by the health authorities. If minimal
monomer emissions are present in the atmosphere near production sites, the vinyl
chloride monomer tends to remain in the air for two days because it breaks down very
quickly. Its impact on stratospheric and greenhouse impact is thus negligible. The
potential impact of this monomer on troposphere ozone has not yet been assessed.

In this regard, the factory will undertake a separate and detail Environmental Impact
Assessment