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Cotton yarn


1. Product Description: Most woven fabrics and knitwear fabrics are made from cotton yarn which is made in textile spinning factories.  Yarn is produced to be an input for the weaving department in textile mills and to be sold in the market to the handloom industry where it is made to traditional clothes for women and men.  Though gradually declining, rural people especially women wear clothes woven by traditional weavers and these clothes are made from cotton yarn.


2. Rationale:  There are only two textile mills in the whole Amhara Region, and one of them is about 45 years old with very little renovation during all these years.  The two mills produce small quantities of cotton yarn for the local market, but their yarn production is not sufficient to satisfy the yarn demand of the Region.  As a result, large quantities of yarn are imported to the Region from other parts of the country.  With the existing two textile mills getting old and obsolete, the production of yarn from these factories will decrease.  To supply the yarn requirement of the Region from Regional production, one medium scale spinning mill is needed.


3. Market Potential:  Between 1992- 1995 E.C average annual production of cotton yarn was 5,679 tons and the share of the Amhara Region was not mote than 500 tons.  On the other hand, share of the Amhara Region in the consumption of domestic yarn was about 1,700 tons – indicating the fact the Region is a net importer of yarn.  When consumption of imported yarn is included, the demand for cotton yarn in the Region is higher.  Textile factories can be built either as integrated units (spinning and weaving) or as separate units like spinning or weaving.  Spinning mills can have different capacities and still be viable.  The yarn market in the Amhara Region can absorb the production of a small to medium spinning mill which can be viable technically and financially.


4. Source of Raw Material: The land resources of the Amhara Region can produce all the cotton that the Region needs to produce the textile fabrics and yarn requirement of the people.  Of course, to produce this cotton, large scale cotton plantation should be allowed to be started in suitable areas of the region.


5. Production Process & Technology: The main processes are carding of mixed cotton lint, drawing, combing, roving, spinning, twisting, winding, setting and packing.


6. Estimated Investment: Machinery & Equipment Birr                  30 Million

Buildings Birr …………………..    5 million

                        Total…………….   35 million


7. Benefits: Stimulates the agricultural economy of the Region due to the need of establishing cotton plantation, self- sufficiency in yarn production, supports the handloom industry plus all the other benefits associated with the development of industry in any region.

8. Location:- Gondar/Azezo.