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mobile saw mill

1.Product Description: Products from saw mill operation include different types of lumber and these are produced by processing (cutting, slicing, splitting, smoothing, shaping, etc) logs of different tree species. These wood products are used in the construction, furniture and fittings, packaging, civil engineering etc. industries. Lumber from different tree species are used for different uses depending on their strengths.


2.Rationale: The building, construction and furniture industries in the Amhara Region require different types of lumber. Though the forest resources of the Region are depleted, most of the lumber requirement is met from the remaining “forests” and tree stands found in scattered and isolated localities. This is more so in the western part of the Region than in the eastern part where the depletion of forests is more severe. With careful utilization and proper management, the existing forest resources coupled with those which must developed with can supply part of the lumber requirement of the Region. However, the number of trees that could be turned to logs in one specific area may not be sufficient to meet the raw material need of a saw ill permanently located in the locality. Given the small size of forests in localities where these patches are found, the viable option of utilizing these forests is to have a mobile saw mill which will move from one locality to another for processing logs to be obtained in each locality.


3.Market Potential: Due to shortages of logs (because of deforestation), the saw mill industry in Ethiopia is not expanding as demand for its products requires. Even with this constraint, production of lumber has been increasing between 1999 and 2003. For example, 3080m3 was produced in 1999 and 7220m3 was produced in 2003. But this production was a small fraction of the demand. To compensate this shortage, lumber is being imported from abroad. In fact, most of the lumber requirement of the construction industry (especially formwork) is met form imports. Similar to other regions of the country, the Amhara Region requires lumber for its various needs. The lumber requirement of the Region will increase as the construction and other lumber consuming industries expand. Hence demand for lumber will not be a constraining factor for a saw mill operation. In other woreda, for any quantity of lumber to be produced from the existing meager forest resources, there will be enough market. In fact, the Region will need additional lumber which will be imported from other parts of the country of from abroad.


4.Source of Raw Material: The small forests found in a number of localities in the Region.


5.Process and Technology: The main production process include-leading logs jto log turner, log dogging, set working, cutting the log into halves, cutting into quadric section, cutting into boards and squares. Main machinery include band and circular saw, bank stretcher, conveying equipment, large and medium types of saw sharpeners.


6.Estimated Investment: For a mobile saw mill which will produce about 20m3 of lumber per day and which will operate about 175 days per year, the estimated investment will be:

§  Mobile Shade 60 m2 at Birr 1000/m2                          60,000

§  Machinery                                                       1,000,000

§  Working Capital                                                 200,000

                                                                        Total                            1,260,000


7. Benefits: Utilization of the Region’s natural resource, support to the construction industry, promotion of to self-sufficiency.


8.Location: Mobil – localities where there are forests with potential supply of logs.