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PVC Pipes, Conduits and Other Fittings Making Plants

1.  Product Description: PVC or plastic pipes are used for carrying drinking water, irrigation water, sewerage and other liquid and semi liquid substances form one place to another.  These pipes have almost replaced other pipes made of metal, asbestos or cement.  Conduits are used to cover electrical cables and they are extremely useful for safety.


2.  Rationale: Until recently all PVC pipes and conducts were imported.  In the last three or four years, plants which produce PVC pipes and conduits are established in or near Addis Ababa; but their production volume is not enough to meet the domestic demand.  Both PVC pipes and conduits are mainly used in the construction and civil works sectors; and these sectors are expanding almost in every part of the country.  With further expansion of the construction industry, the demand for PVC pipes and conduits will also expand.  Like many other industrial products, the Amhara Region imports these products from other parts of the country or from abroad.  To be self-sufficient in these products, investors must be encouraged to establish a PVC pipes and conduit making plant.  Though the products are not heavy, they take a lot of space when they are transported, and as a result, they are expensive to transport.  If would, therefore, be economical if they are produced in or near where they are to be used.


3.  Market Potential:  more than 25 percent of imported and locally produced PVC pipes and conduits are consumed or used in the Amhara Region.  The scale of construction activities being undertaken in the Region certainly justifies the establishment of a medium size plant which will produce PVC pipes and conduits.


4. Source of Raw Material: the raw material is a by-product of the petroleum refinery industry and as such it will be imported in pellet or powder form.


5. Production Process & Technology: PVC pipes are generally manufactured through the extrusion process which is forcing a softened plastic materials through an artifice by applying a continuous pressure.


6.  Estimated Investment: Birr 2.5 million.


7. Benefits: removes some bottlenecks that the construction industry faces, makes the Region self-sufficient, save foreign exchange.


8. Location: Bahir Dar, Combolcha