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Gypsum Manufacturing Feasibility Study

This document summarizes a feasibility study for a proposed gypsum powder and gypsum board manufacturing plant in Dejen, Ethiopia. The plant would have a production capacity of 300,000 tons of plaster of Paris and 4 million square meters of gypsum board annually. It would require 55,976 square meters of land. A market demand gap was identified and technical studies found the project feasible. The total investment is estimated at 196.9 million birr, with 30% equity contribution and 70% bank financing over 5 years. The project is expected to be financially viable with a 25% IRR and positive NPV at 8.5% interest. It would create 375 jobs.

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266 views2 pages

Gypsum Manufacturing Feasibility Study

This document summarizes a feasibility study for a proposed gypsum powder and gypsum board manufacturing plant in Dejen, Ethiopia. The plant would have a production capacity of 300,000 tons of plaster of Paris and 4 million square meters of gypsum board annually. It would require 55,976 square meters of land. A market demand gap was identified and technical studies found the project feasible. The total investment is estimated at 196.9 million birr, with 30% equity contribution and 70% bank financing over 5 years. The project is expected to be financially viable with a 25% IRR and positive NPV at 8.5% interest. It would create 375 jobs.

Uploaded by

muler
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Executive summary

This is the feasibility study for Gypsum powder and Gypsum board manufacturing industry project. It is
planned to establish in Dejen town for manufacturing gypsum powder and Gypsum board for the market.

The plant will be proposed to have a theoretical production capacity of 300,000 tons of Plaster of Paris
per annum and 4 million m2 gypsum board per annum assuming 300 working days a year.

The company has requested to 55,976.20 m2 area of land from East Gojjam, Dejen town to produce
gypsum powder and gypsum board.

The project study identified that there is market demand gap. Also the technical feasibility study has
shown that the project is technically feasible and the appropriateness of machineries, plant layout and
technology is verified. The investment cost is estimated to be birr 196,899,932. The source of finance for
the project would be both equity contribution and bank finance. From the total investment cost, the
project promoter will contribute 30% and the remaining 70% shall be bank finance repayable in five years
with quarter installment against collateral of the project assets.

Profitability and financial viability of the project have been seriously analyzed. The project NPV at the
current interest rate of 8.5 % and IRR is 25%, respectively. The project create a job for Professionals,
semi professionals' staffs and unskilled labor will be recruited for the project on permanent and temporary
basis that would be a total of 375 workers.

1. Pproject back ground


1.1. The company
Name: KASAHUN KEFYALW Gypsum powder and Gypsum boar production industry.

Legal form: sole proprietor ship

1.2. The project objective and status


The main objective of this project is establishment of modern Gypsum powder and Gypsum board
manufacturing industry in Dejen city admistration which is economically, socially and environmentally
feasible.

1.2.1. Specific objective


 To produce quality gypsum powder and gypsum board and supply for the market.
 To generate income for the company
 Create job opportunity for Dejen and surrounding society
 Generating income for the government
Vision:

To become one of the known gypsum powder and gypsum board manufacturing industries in the country.

1.3. Scope of the project


The scope of the project is to establishment of practical Gypsum powder and Gypsum board
manufacturing industry and supply to the market.

1.4. Project location


The project will be located at Dejen town. Dejen town is located in the regional state of Amhara at
distance of 232 km from Addis Ababa which sufficient raw material deposit is available.

1.5. Beneficiaries of the project


Direct benefits of this manufacturing project include:

 Net returns on investment to the promoter,


 supply of quality gypsum powder and gypsum board to the market and
 Increases the development of the country.
 Increases job opportunities

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