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Silk is a natural protein fiber, some forms of which can be woven into textiles. The best-known type of silk is obtained from cocoons made by the larvae of the mulberry silkworm Bombyx mori reared in captivity (sericulture). The shimmering appearance for which silk is prized comes from the fibers' triangular prism-like structure which allows silk cloth to refract incoming light at different angles.


The imported quantity has been in the range of 5,238 kg and 15,854kg.  During these three years referred above, the annual average was about 9,914 kg.  But during the years 2000-2004, the imported quantity was extremely very low, which ranged from nil during year 2000 to 907 k.g. during year 2002.  A slight increase in import has been observed during year 2005, which is registered at 2,579 kg but declined to a very low level of 30 k.g. during year 2006.




The raw materials used for production of silk fabrics are silk yarn and bleaching chemicals. Silk yarn is currently imported but the country has the potential of silk fiber production. There is a good start in the production of the silk fiber in different regions of the country such as Amhara, SNNPRS and Oromia regional states.



Silk fabric can be produced either by weaving or knitting but knitted silk fabric is envisaged for this project and the process is discussed briefly as follows.

The raw material (Silk Yarn) that has been delivered is wound on a cone, which is most suitable for knitting.  The silk yarn is then placed on the knitting machines for knitting in to cloth. The silk fabric is inspected for knitting damage and other flaws, and sub-standard goods are eliminated. 



The total investment requirement is estimated at   Birr 10.35 million, out of which Birr 579.33 thousand  is required for plant and machinery. The plant will create employment opportunities for 33 persons.

The project is financially viable with an internal rate of return (IRR) of 27.93 % and a net present value (NPV) of Birr 10.59 million, discounted at 8.5%.