Tire Recycling Business Propsal

Tire recycling investment Project
Ethiopian Construction Works Corporation
Investment Feasibility Study Of Tire Recycling
March 2021
Addis Abeba
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Introduction
In recent times, if there is any industry or line of business that is gaining support key
stakeholder in our world today, it is the recycling industry. This is simple because the recycling
business is an eco-friendly business.
There are diverse niches areas of specialization in the recycling industry and one of them that
can specialization if the company is interested in starting a business to go into tires recycling
business. It is a business that is highly profitable.
Basically what we need to launch a tire recycling business is the machine and equipment needed
and how to operate them a good knowledge of where to collect used tires and where to sell the
product generated from the recycling process the legislation guiding the industry as well as
strong entrepreneurial skill and determination.
The recycling industry of which tires and rubber waste recycling is a subset of has become an
integrated part of modern society not only due to its social and economic impact but also
because it play vital role for the preservation of the future of our nation.
The estimated manufacturing unit needs a capital investment of birr 36,090,000.00 for
machinery and equipment purchase. In parallel to this a total birr 20,000,000.00 is required for
working capital as well as for raw material and other supplementary costs including
infrastructure requirements.
1. Vision Statement
Our vision is to create a profitable and standard, world class recycled tires & rubber waste
using advanced processing technology with active involvement of employee to provide for
customer by 2022 by creating good environment for society.
2. Mission Statement
Our mission is to provide standard recycled tires & rubber materials that will assist the relevant
industries in saving cost & energy & also to contribute our quota in helping save our country
from unnecessary degradation caused by buried tires & rubber material waste in to the
environment.
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3. SWOT Analysis
3.1) Strength
 It is sole company
 Having a better comparative advantage
 Waste free process
 Extremely low energy consumption
3.2) Weakness
 Limited to only on recycling process.

 The raw material is not easily available
3.3) Opportunity
 Increasing the number of car buyers

 Job opportunity for local society
 Cheap labor cost
3.4) Threats
 Difficulty in collecting worn tyres

 As a new entrants in the industry penetrating the market may take some time
 Competition from tyre retreading companies like Fukunaga Engineering Co., Ltd, a
Japanese firm in worn tyre supply.
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CHAPTER I
Market Analysis
2.1 The Rubber Industry in Ethiopia

Rubber industry in Ethiopia is mainly in the sector of vehicles tires system and as spare parts in
different mechanical and pipe system. These consist of mainly rubber seals and vehicles tire
manufacturing. The industry sector of manufacturing rubber seal is booming recently and the
basic cause of this plant propagation is due to development of potable water supply all over the
country since the basic policy of the government is to cover 94% of the country with potable
water though until now only 68% is supplied. This is only regarding water supply if we consider
the irrigation, drainage and sewerage and housing development project we can expect more
demands.
In addition different rubber products such as road cushion sports site pavements rubber board
for construction of sound proof building uses rubber. However such products are not well
known in the country.
2.2 Supply of raw rubber in Ethiopia
The raw material for the sole tire making factory (matador Addis Tyre Factory) comes from
foreign sources. To produce natural rubber latex in the country, a rubber tree plantation scheme
was established in the former Illubabor province.
Up now not much latex production has been achieved by the plantation. The use of different
types of rubber products in Ethiopia will increase and this will necessitate the importation or
domestic production of natural rubber latex. Rubbers are strategic products from the point of
view of national security and economic independence. If imported supplies of red made tires or
latex are disrupted by causes beyond the control of the national government, the whole
economy and the capability of national defense will be adversely affected. This is because the
movement of people and goods will be disrupted.
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Ethiopia imports some 3000 tons of different types of raw rubbers (costs Birr 630 million)
annually. In contrast to this, however, the report of the National Project of Rubber Plantation
and Processing (NPRPP) suggests the country's rubber import amounts to 6,000 tons annually.
2.3 Use of Tire Rubber Modified Asphalt Binder
The use of tire rubber powder modified with asphalt binder seems to enhance the fatigue
resistance, as illustrated in the following figure by different number of studies.
Figure 1 Fatigue cracking

These investigated the effect of CRM (Crum rubber modifier) with different percentages from
5, 10, 15, and 20% by weight of asphalt binder on rutting and fatigue cracking performance of
modified asphalt binder. The higher CRM percentages seemed to lead to the lower. Some study
showed that an increase in tire rubber powder percentage has an obvious effect on improving
the fatigue resistance of asphalt than the unmodified binder indicating that rubberized asphalt
binder would improve the fatigue binder as a result of addition of tire rubber powder as
modifier.
The tire rubber powder modified asphalt binders provide improved mechanical properties,
increasing pavement durability, and enhance fatigue resistance. According to several study the
addition of tire rubber powder to the asphalt binder enhances the physical and rheological
properties of modified asphalt binder. In addition, the tire rubber powder modified asphalt
Binder has become more popular because of its reported advantages.
In Europe rubberized asphalt has been successfully used in road pavements application since
1981 in Belgium, as well as in France, Austria, Netherlands, Poland and Germany , more
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recently also in Greece and UK , but the countries with a higher numbers of applications are
Portugal , Spain , Italy , Czech Republic and Sweden.
Nowadays the rubberized asphalt technology is being adopted in many other parts of the world:
As report indicated Taiwan have adopted the Arizona DOT gap-graded and open-graded
rubberized asphalt mixtures for flexible pavement rehabilitation; furthermore, rubberized
asphalt has been trialed in Beijing and for use in new and maintenance work as part of the
preparation for the 2008 Olympics in China and it has also been used in Eco Park Project in
Hong Kong. On the basis of first positive experiences also Brazil and Sudan are strongly
investing in the application of this technology for road pavements.
Ethiopian government’s Roads Authority reporting progress on the second five-year Growth
and Transformation Plan (GTP-II), which runs from 2015 to 2020. In 2015, at the end of GTP-I,
the road network had reached 100,000 km. In 2018 stands at 121,171 km, according to the roads
ministry, including gravel roads. That represents a large expansion from 1990, when there were
just 19,000 km of roads. About 90% of them are asphalt. Road-building now consumes about a
quarter of the federal government’s annual infrastructure spending. The road building program
had spent about $11 bn over the past 20 years, and that the annual budget for the roads sector
had grown 20% to reach $1.7 bn. The present program includes the 200 km Hawassa
expressway in the central-southern area of the country, which got under way after a four-year
long search for funds. According to the government official, the government allotted a huge
budget for road sector. In fact, it was three times the amount of the previous year 2018 but still
more needs to be done. For the last 21 years, the sector swallowed more than 256 billion birr.
The government treasury paid for 83 percent of this to build 16,000km of road networks. The
federal government road network data registered close to 30,000 km. The coverage is not
enough for the country. Ethiopia has an area of 1.1 million square kilometers so the government
must invest more in the sector until the coverage reaches 500,000 km. The nation hopes to boost
this road coverage to 220,000 km by the end of the second edition of the Growth and
Transformation Plan (GTP II).
2.4 Local Production
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In Ethiopia there are few companies whom producer of rubber products these are Matador
Addis Goma, Rubber economy enterprise and Unity rubber products. The former one mainly
engaged in manufacturing of vehicle tire and the latter two are engaging in production of rubber
seals for pipes and mechanical parts as well as rubber mats. The annual local production of
rubber products has been reported 700 tons per year.
This production of rubber is focused on only for production of vehicle tire, rubber seal for pipes
and different mats and mechanical seals. However production of rubber products for the
purpose of sound proofing in big building, play ground and sport or running track as well as in
asphalt road, pedestrian road tiles are not well known in the country. However there is a huge
plan in the government side particularly tourist attraction recreational areas, parks, housing and
real estate program, kindergarten and schools construction etc. Therefore production of such
products will be untapped business opportunity and potential market by introducing this new
technology in the country.
2.5 Import of rubber products

The data shows that Ethiopia imports more than 16 billion USD items per annum and export
only 3 billion USD which shows pain full trade deficit. The importation of rubber products are
the one among others which affect the country trade balance. Since the local companies’
capacity to produce rubber products is very low different rubber products are imported from
different countries in various forms of products such as reclaimed rubber, rubber mats, vehicles
tire, mechanical seals etc. The major sources of rubber product imports were China, India, and
Saudi Arabia. Ethiopia imports an average of 4,170 tons of rubber product every year.
2.6 Projected Demand of rubber products in Ethiopia

This investment study main intentions is producing and delivering different rubber products,
such as stadium running trucks, pedestrian road tiles, kindergarten and other recreational areas
rubber play grounds. In this regard the study should identify first target customers and their size
and purchasing power.
Recently, the Ethiopian government due great attention for parks and recreational areas
development in order to make Ethiopian cities world-class tourist destination. To this end, the
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government initiated Entoto park, Unity park both are inaugurated recently. In the regional
towns Kohisha, Gorgorra, Jimma, etc. These increasing recreational areas development
endeavors will open up big market demand for tire recycling investments in regarding with
production of rubber play ground.
This demand projection is based on the supply growth of the product as well as the demand. For
this study Government policy regarding local development of potable water supply all over the
country is taken as a reference, and considering the existing raw material shortage since most of
the demands of raw rubber products supplied from imported source. There are also several
housing projects in the cities of the country such as Real Estates, condominium housing, private
and government construction works which needs rubber seal for the pipe manufacturing
industry and as soundproofing in buildings.
Also considering the future and current construction of asphalt road which will be built in the
country in the next five years which is more than 100,000km and considering 20% of the
asphalt is reclaimed rubber is the main objective of this business proposal. The assumption is
made considering the density of concrete asphalt is 2243kg/m 3. Accordingly if we assume the
thickness of this asphalt road is 15mm in thickness whose lane length is 20 meter the quantity of
asphalt concrete is calculated for 100,000 km of road to be 6.73x10 8 tons of asphalt concrete is
required . If we are able to substitute 20% by reclaimed rubber the quantity of required amount
of reclaimed rubber would be come 1.35 x 10 8 in five years. The following table shows the
average projected demand of reclaimed rubber for such products.
2.7 Target Market
The government development endeavors in particularly construction of tourist attraction parks,

recreational areas, sport, Gym, play ground will be potential market. Besides that the country’s
ten years (2020-2030) plan shows that a significant amount of budget allocated to road
construction across the country. All this
Recycling already used materials into still useful products, our services are very essential,
especially by such industries as tire manufacturing industries, shoe and footwear manufacturers,
construction/roofing companies, construction company that involve in race tracks and
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playground construction and more importantly the federal and regional government offices who
in charge of construct parks, recreational areas as well as stadium, federal and regional road
construction authority, real estate developer, federal and regional housing and construction
offices and in general investors, wholesalers are among a long list of potential customers that
will be requiring tire recycle products and service. In effect, our target market is wide and large
enough to accommodate our product.
2.8 Competitive and Comparative Advantage
Since there is no such sophisticated tire recycling producer in the country the corporation will
be pioneer in this specific sector and monopolize the business. Having lot of scrap tires along
the projects and availability of land for investing, experienced man power in related tire
recapping technology are some of the comparative advantage that makes the corporation
monopolize business which helps to set the price.
The country’s a tire recycling market that has not yet to experience entrants, and so much room
for more investors, there is at the moment no strong competition as the information gathered
from ministry of trade has shown that for now, there is no registered investor engaged in this
particular line of business, so, the tire recycling industry is not yet saturated, and still has a large
space to accommodate new entrants into this sector.
2.9 Raw Material Supply
Many countries experience shows that tire recycling investment big challenge is lack of raw
material. Since the raw materials for this investment are not renewable the business will not be
sustainable. Hence, the corporation should identify better strategy to tackle the binding
constraints. Organizing small enterprise across the country who collect tires and deliver at
permanent bases is the first for most strategy.
In order to make sustainable business the corporation needs to ensure The proposed factory
solely utilizes used tires as a raw material which as a result of prevalence of inefficient disposal
system there is abundant throughout the country. There is no sufficient information concerning
the amount of used tires throughout the country annually.
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2.10 Demand and Supply Gap for rubber products
The total production capacity of the existing factories is estimated at a maximum of 3600 tons
per annum. Thus, the total capacity of the factories will be about 700 tons per year in spite of
this local capacity the country is continuing importing the rubber products. Therefore this study
takes into consideration the imported amount of pipes as a demand and supply gap as well as on
the assumption made to use the new technology in our country to use it in the future asphalt
road construction projects as described in section 9 of this study.
Projected demand and supply gap analysis

Projected Available local Import Demand and Demand & supply gap in
Year
Demand in ton Capacity in ton Supply Gap in ton tons for asphalt road
2020 4170 700 4170 2.7x 107
2021 4170 700 4170 2.7x 107
2022 4170 700 4170 2.7x 107
2023 4170 700 4170 2.7x 107
2024 4170 700 4170 2.7x 107
2.11 Sells Channel

Almost all of the total industry production will be sold through conventional market channel.
Manufacturers generally distributed these rubber products using a network of wholesalers who
then sell to retailers and customers or directly to the customer or retailer as per the quantity
required. The wholesaler should have a good name with past experience and sound financial
position and has a wide network in the market areas. In an endeavor to boost sales in a very
tight market competition, as a manufacturer of rubber products generally resort to credit facility,
providing and maintaining good quality of products.
2.12 Analysis of competition
The available data shows that there is no tire Recycling plant exists in Ethiopia, except local
producer, in this regard the corporation will have no local direct competitors. The so called
Gomma Quteba and Horizon Addise tire Plc both engaged in low level rubber products and tire
production respectively. However, for fuel oil and carbon char pellet, electricity, imported fuel
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oils, local and imported coal, all biomass fuels, etc.; and for scrap steel, imported billets and
imported/local scrap steel are the established substitute/alternative competing products. Profit
and prices are affected by substitutes, and hence, price of the substitute products has to be
closely monitored and adjusted.
The threat of new entrants is high. Investors who want to enter to the scrap tire pyrolysis
business are not restricted. The Government may even encourage them to engage in the
business from the point of view of import substitution, environmental protection as well as job
creation. Hence, new entrants will be attracted to the business once the current project becomes
successful. Profit will then be low to the project, and hence, it must take first-mover advantages.
The bargaining power of suppliers is low to medium. A key success factor for the business is
reliable supply of scrap tires. Hence, as suppliers can increase the price of scrap tire and sell to
other applications, having good relation with them and multi-sources of supply is necessary.
Raw material supply can be handled by signing long term contracts with local suppliers.
Moreover, strategic partnership particularly with big transport and vehicle service companies
must be created.
The bargaining power of buyers is low to medium. Buyers may force down the product prices
by buying from competitors. Buyers can influence price of proposed products if they are of
higher price and of poor quality. Identification of markets for the materials produced, a very
strong product development and aggressive marketing is desirable, Hence, offering low price
and good quality products and services is essential.
The intensity of rivalry: Among established firms is low to medium. Low to medium
advertising and price wars exist. Market is highly regulated and supply is monopolized by
Government.
2.13 Marketing Strategy
Marketing strategy here refers to the position that the project takes with regard to the marketing
mix (pricing, promotion/advertising, product design and distribution.
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2.14 Product/Service
Apart from the variations that may be created by supply of different types of tires, the products
will be of uniform quality. Specially, the oil shall conform to specific standards. The scrap steel
is already a good quality material. Carbon char fuel will be in pellets and is of high heat content.
Products will be packaged properly to suit transport and customer requirements. Transport
services will be offered to important customers.
Price and pricing
Most buyers are price sensitive. The proposed products are substitutes for already existing
products in the market. Hence, a low price strategy is followed in order to penetrate the market
and stay in the business. Availability of the raw material at low cost with appropriate
technology will enable the project to produce good quality products with high yield rates, which
can reduce production cost. During the study survey, prices of substitute products were
collected as shown in the table below.
Description Different taxes Price after tax ECWC Price Difference

Price at Beijing 25 USD -
Custom duty 35 33.75
Excise tax 30 43.87
Sure tax 15 50.45
Vat 10 55.50
Withholding 3 0.75
Freight - 0
Insurance - 0
Holding cost - 0
Sub Total 184.33 USD
Margin and overhead 35
Price When it reached at Addis Abeba 248.8 USD 124.40USD 50%
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Selling ECWC
Unit of Selling Price
Products unit Price proposed
Measure at bejing
selling price
Rubber powder kg 1Kg $0.75 7.46 USD 3.7 USD
Stadium Running Trucks Sqm 1sqm $25 248.8 USD 124.40USD
pedestrian Rubber Tiles Sqm 1sqm $25 248.8 USD 124.40USD
Kindergarten play ground Sqm 1sqm $20 199 USD 99.52 USD
Hence we can conclude from the above table price competition this tire recycling investment
will dramatically minimizes the country’s hard currency problem.
2.15 Promotion and Advertisement
A very aggressive market promotion is desirable, as the products are new to the market and the
customers have long adapted to the alternative products already available. The promotion
strategy will be based on making the right information available to the right target customers.
The promotion will also target scrap tire suppliers, particularly, collectors, post consumer sellers
and in general for the public and government. These promotions can be done through personal
sales, active presence at bazaars, exhibitions, sport and societal events and advertising on radio,
newspapers, billboards and company brochures, table and wall calendars, etc.
Sales and channels of distribution.
It is expected that much of the sales of the products will be made in Addis Ababa for the first
six months than expand the sells to all regional governments, in the second year will penetrate
east and central Africa market, from the third year on wards will enter the all Africa countries
and became a perfect competitor.
The project can sell the bulk of its products in convenient packages and bales (for the steel) at
its premises to most end-users to be more cost-effective. Direct delivery to big consumers can
be advantageous, however. In addition, products will be supported through credit sales. It will
be designed to have closer relations with, and providing better service to, major users
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Major Binding Constraints and Mitigating Strategies
1) Raw martials availability

The major raw material for this investment is scrap tire, the available data shows that ECWC
has excess scrap tire across the project which accounted around 100,000. In addition to that, the
corporation may collect from automotive industries, regional and federal government offices,
different projects across the country. But in order to sustain the business the availability of
capable and competitive supplier is very crucial, in that regard the absent of raw material
supplier will be big treat for business.
2) Man power capability
Since tire recycling technology is a new business venture for the country
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Chapter III
Technical Analysis
3.1 Tire recycling Machine & equipment
The plant design is subdivided basically into 4 process stages, with the waste tyre processing. In
material recycling, the waste tyres are crushed and granulated. The granulation process
separates the textile and steel fraction from the rubber so that the desired particle shape, particle
surface and particle size distribution of rubber crumb and rubber powder are obtained.
Figure 2 Process of recycling the rubber

3.2 Tire Recycling Production Process
3.2.1 Collection of Used or Worn Out Tires
In every recycling process, collection is usually the first step. Here, tires are collected by
individuals and some business individuals who have ventured into tire recycling business.
People are paid for collecting tires and sending them to collection points. Once the tires reach
the required number or volume, they are packed in huge tracks and sent to the processing plants
for processing. Although it is considered a profitable venture, some people prefer reusing these
used tires for other purposes at home. A good example is using the tires as rubber mulch, used
in jungle gyms for strength, speed agility and resilience training.
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3.2.2. Whole Tire Processing
At the processing plant, processing basically starts with cutting the tires into tiny pieces. This is
an important step that aims to reduce the volume of the tires and create a material that can be
handled easily. The tire shredders (the machines specially designed to shred tires) basically
shred or cut tires using two counter rotating shafts which produces 2 inch pieces. The end
product of this stage can be used as a raw material for tire derived fuel. Tire processing employs
one of these two systems:
The mechanical systems grind scrap tires into small chips using the ambient process. In a
typical ambient system, the rubber shreds are put into one granulator fitted with screens that
help in determination of the product size.
These systems freeze tires at very low temperatures. This shutters the rubber to create different
chip sizes. The tire shreds are then supper cooled using liquid nitrogen. The extremely brittle,
cold rubber is then passed through a hammer mill which shatters the rubber into very tiny
particles. From these tiny particles, steel is removed using powerful magnets and fibers are
separated with air classifiers. Finally, clean recycled rubber is obtained and can used in other
applications.
3.2.3. Steel Liberation Stage
The tire shreds obtained from step 1 are processed and prepared for the elimination and
separation of the tire wire from the rubber. This important step includes fiber separation and
course screening. Tires contain steel wires for resilience, strength and versatility. The steel
wires are removed, recycled and sent to steel rolling mills for the manufacture of new steel. The
remaining rubber can be sold as rubber mulch or can be used as playground or field turf or used
as crumb rubber feed stock.
3.2.4. Screening and Milling Stage
Once the wires are separated from the rubber, the next stage is screening. This involves careful
observation of the rubber to ensure there are no more wires or other contaminations. The
screening process is all about screening a huge number of different sized rubbers which contain
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no wires, sorting them into varied sizes, eliminating all unwanted substances, and the reduction
of extra-large and unwanted rubber pieces.
3.2.5. Cleaning Stage
Once the screening process is complete, the next step is the cleaning stage. Here, the rubber
obtained from the screening and milling stage is thoroughly cleaned. This process involves the
use of water and other cleaning agents to thoroughly clean the rubber. Once the clean rubber is
obtained, it can be packed and transported to other factories that require rubber as a raw
material in their processing plants. For example, rubber shoes manufacturers, playground turf
manufacturers and other rubber applications.
3.3 Features of Recycled tires
 Environmental Friendliness
 Durability
 Resistance to UV Rays
 Economical
3.4 The uses of recycled tires
Improper tire disposal is not only harmful to the environment; it is also an incredible waste of a
highly useful resource.
A better solution to the abandonment of worn tires is to have them properly recycled. Many
states now require that tire dealers charge an environmental fee that is used to cover the costs of
properly recycling waste tires. These fees are paid to waste tire recycling operations, which can
begin the process of giving new life to old tires.
Here are some of the uses for recycled tire material:
3.4.1 Gravel Substitute
Anywhere gravel is used, chances are that tire chips can be used instead. Applications include:
sub-layers for roadways, aggregate for drainage ditches, and highway embankment backfill.
Tire chips can limit frost penetration, when used under roads in cold climates. They are nearly
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three times as light as gravel, which on its own can produce incredible savings in labor,
equipment costs and time. Tire chips are used under light rail tracks that run adjacent to homes
and businesses, to reduce vibration and noise mitigation from passing trains.
3.4.2 Crumb Rubber
Crumb rubber is finely ground rubber produced from waste tires. Steel and tire cords are
removed from discarded tires, and the remaining rubber is reduced to a granular consistency.
Some applications for crumb rubber include: rubberized asphalt, playground flooring, welcome
mats, anti-fatigue mats and vehicle mud guards.
3.4.3 Landfill Medium
Shredded or chipped tires can be used as both a liner and/or a cover for landfills. Tire chips can
be used as a thermal insulation between primary and secondary landfill liners to reduce
temperatures. They also provide a great alternative to coal or incinerator ash, since both are
permeable. Finally, tire chips can be used as an efficient and cost-effective landscaping medium
for landfills.
3.4.4) Wastewater Treatment Filters
Tire chips can be shredded into a specific and uniform size, making them useful in a variety of
ways. Another innovative use is filters in wastewater treatment and constructed wetlands.
Because tires can be chipped to be more or less porous than organic compounds, rocks and
other material, they often serve as a much better filter media.
3.4.5) Garden Mulch
Yet another innovative use for recycled tires is rubber mulch. Not only does it retain its
appearance over time, it doesn’t float away during rainstorms, nor will it rot the way wood
mulch will. Unlike wood mulch, tire chips don’t attract termites and other wood-boring pests.
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Chapter IV
Financial Analysis
The total cost of investment estimated birr 80,000,000.00 (2 million USD) for purchasing the
machines, auxiliary equipment, infrastructure and building the warehouse and manufacturing
site and office as well as working capital which makes the total investment to be
210,000,000.00.
Accordingly the production capacity of the machine assumed to be 20 hrs per day considering 4
hrs maintenance and shift exchange time the daily capacity of production become 2 ton per hr
and 40 tons per day.
If the working time in the year is 300 days, the annual capacity of the machine become 12,000
ton per year as long as it uses its full capacity. However, being new entrants in the industry,
production as per the machine capacity will be reach out within three years starting with 50%
first year followed by 75% second year and 100 % at third years and on wards.
Description Unit Qty
Design capacity Tons/day 40

Effective working time per day hrs 20
Number of shifts per day Shift 3
Working time per year Days 300
Max production capacity per year (input) Tons per year 12,000
Description Unit P Production year

year 1st 2nd 3rd and onwards
Number of effective working times per day hrs 20 20 20
Total scrap tire (input) tons 6000 7500 12,000 tone
Capacity utilization % 50% 75% 100%
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1. Production Revenue at Full Capacity
Sr. Description Unit Production at Selling price Annual

No full capacity per unit Revenue at
(Birr) Full Capacity
(Birr)
1 Recycled Tire kg 12,000,000kg 20.25 301,920,000
2. Production Cost at Full Capacity
Sr. Description Unit Production at Selling price Annual Revenue

No full capacity per unit at Full Capacity
(Birr) (Birr)
1 Recycled Tire kg 12,000,000kg 17.61 211,320,000
3. Revenue at different years
Revenue at different years

1 2 3 and Above
Product 50% 75% 100%
No
Type
Quantity Revenue Quantity Revenue Quantity Revenue
kg (Birr) kg (Birr) kg (Birr)

1 Tire recycled 6,000,000 150,960,000 9,000,000 226,440,000 12,000,000 301,920,000
4. Utility Cost
Description Daily Capacity Price per Daily electric cost Annual electric
Kw cost
Electric power 40 ton 0.86/kw 2,150.00 645,000.00
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Item In Birr % share

Office Supplies 4,345,000.00 7.2%
Employees Compensation 4,200,000.00 7.0%
Overtime Expense 1,560,000.00 2.6%
Electricity 645,000.00 1.1%
Water 206,400,.00 0.3%
Fuel 1,032,000.00 1.7%
Insurance 412,800.00 0.7%
Repair and maintenance 1,238,400.00 2.1%
Spare parts 4,560,000.00 7.6%
Workshop supplies 3,105,000.00 5.1%
Equipment Rental Expenses 7,250,000.00 12.0%
Labor 870,000.00 1.4%
Other Administrative costs 2,270,000.00 3.8%
Marketing 3,200,000 5.3%
Transportation 6,500,000.00 10.8%
Periderm 7,200,000.00 11.9%
Training 3,300,000.00 5.5%
Medical expenses 2,580,000.00 4.3%
Entertainment 1,500,000.00 2.5%
Janitorial Supplies 3,680,000.00 6.1%
Miscellaneous Expenses 650,000.00 1.1%
Total 60,304,600 100%
4.2 Investment Cost

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The total investment cost of the project is estimated at Birr 210 million. From the total
investment cost the highest share plant and equipment and fixed investment cost followed by
pre operation cost.
4.3 Building and Civil works
The factory building (superstructure of the project) will be constructed from steel and prefabricated
structures. The structure will house the factory plant, store, administration building, and other
necessary facilities. The total construction cost of the factory building and related works is
estimated to be Birr 6,000,000.
4.4 Machine and Equipment
The main machine of the factory is the one responsible for crushing the rubber blocks to rubber
powder. The machine in question is picked based on its performance, durability, power
consumption and cost effectiveness. This machine is rather a set of separates machines which
collectively might cost 2,499,900.
No. Name Qty unit price Total price
1 Single hook debater 1 137400 137,400
2 Whole tire cutter 1 52500 52,500
3 Whole tire shredder (with whole tire conveyor) 1 555000 555,000
4 Tire crusher 1 750000 75,0000
5 Big conveyor equipment 2 48000 96,000
6 Small conveyor equipment 1 12000 12,000
7 Big Magnet separator 1 39000 39,000
8 Small Magnet separator 1 18000 18,000
9 Big Shaking screen 1 75000 75,000
10 Small Shaking screen 1 45000 45,000
11 Fiber separator 1 210000 210,000
12 Fine grinder 1 480000 480,000
13 Circle shaking screen 1 30000 30,000
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Total cost 2,499,900
4.5 Auxiliary Equipment
For the factory to properly operate it require state of the art equipment for the purpose of tire block
cutting, tyre strip cutting, tire sidewall cutter and bead wire separator. Acquiring this machine require
investment from the side of the corporation.
Sir.no Auxiliary equipment Qty Unit price Total price
1 tire block cutting 1 50,000 50,000
2 tire strip cutting 1 60,000 60,000
3 tire sidewall cutter 1 60,000 60,000
4 bead wire separator 1 150000 150,000
5 Pickup truck 1 2,000,000 2,000,000
6 Heavy duty truck 2 2,000,000 4,000,000
Total cost 6,320,000
4.6 Office Furniture and Equipment
Office furniture and equipment’s are also vital and important for the project. The cost of planned
furniture and equipment’s is Birr 193, 292.99. The detailed is depicted in the table below.
It No. House hold requirements Qty Unit Price Total Price

1 Computers with all accessories 5 18,200.00 91,000.00
2 Tables 6 8900 53,400.00
3 Plastic Chair 10 500 5,000.00
4 Swivel Chair 4 1000 4,000.00
5 Managerial Table 1 9800 9800
6 Managerial Chair 1 9899.99 9899.99
7 Printer 2 7049 14,098.00
8 Filling cabinet 1 6095 6,095.00
Total Accessories cost 193,292.99
4.7 Operating Cost

The total operating cost at 10 year of operation is estimated at Birr 291,048,000.00.
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4.8 Profitability
The project will generate a profit throughout its operational life. Annual net profit after tax
increases from Birr 41.82 million or USD 1.99 million at the beginning of the project to Birr 2.12
billion or USD 101.12 million during the last year of operation (see Table 14.4). Moreover, net
profit as % of sales revenue lies between 24.60% and 59.83%, which is exceptionally high. Net
profit to equity and net profit to total investment or return on investment (ROI) are also attractive.
For detailed net income statement in Birr and USD see Appendix 14.A.2 and 14.B.2 respectively.
4.9 Cash Flow

The projected cash flow of the envisaged industrial park shows that the project would generate
positive net cash flows throughout the operation years. Cumulative net cash flow generated by the
project at the end of the project life will amount to Birr 1.09 billion.
4.10 Discounted Cash Flow
A) Internal Rate of Return
The internal rate of return (IRR) is an indicator of the efficiency or quality of an investment. A
project is a good investment proposition if its IRR is greater than the rate of return that could be
earned by alternate investments or putting the money in a bank account. Accordingly, the IRR of
the project is computed to be 26.72% indicating the viability of the project.
B) Net Present Value

Net present value (NPV) is defined as the total present (discounted) value of a time series of cash
flows. NPV aggregates cash flows that occur during different periods of time during the life of a
project in to a common measuring unit i.e. present value. It is a standard method for using the time
value of money to appraise long-term projects. NPV is an indicator of how much value an
investment or project adds to the capital invested. In principle a project is accepted if the NPV is
non-negative.
Accordingly, the net present value of the project at 12% discount rate is found to be Birr 349.2
million which is acceptable.
C) Payback Period
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The payback period, also called pay – off period is defined as the period required for recovering the
original investment outlay through the accumulated net cash flows earned by the project.
Accordingly, based on the projected cash flow it is estimated that the project’s initial investment
will be fully recovered within 6.09 years, which is a reasonably short period of time.
To sum up, this tire recycling investment project with all financial parameters it is financially
feasible and economically viable.
Organization and Management.

13.1 Human Resource
The Human resource requirement for the project starting from the management, stuff and labor
force would be as follows:
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Table 4 Organization manpower requirements

Unit Monthly
S No. Manpower Quantity
Salary
1
45,000.00
General Manager 1
2 Production & Technical Manager 1 37,000.00
3 Marketing Manager 1 35,000.00
4 Administration & Finance Manager 1 35,000.00
5 Quality Control Manager 1 35,000.00
6 Production supervisor 3 25,000.00
7 Quality Supervisor 3 25,000.00
8 Marketing & Sales Supervisor 1 25,000.00
9 Accountant 1 8,000.00
10 Cashier 1 6,000.00
11 Sales Clerk 1 6,000.00
12 Personnel & Archive Secretary 1 4,500.00
13 Purchaser 1 6,000.00
14 Store keeper 1 5,000.00
15 Maintenance Supervisor 1 15,000.00
16 Electrician 3 8,000.00
17 Quality Controller 3 9,000.00
18 Mechanic 3 8,000.00
19 Operator 3 6,000.00
20 Assistant Operator 3 4,500.00
21 Labor 6 2,000.00
22 Forklift Operator 3 5,000.00
23 Guard 3 2500.00
24 Janitor 2 2000.00
25 Driver 3 4000.00
Total 51 363,500.00
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ANNEX
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S alary
Unit
Total S alary increament per
S No. Manpower Quantity Monthly 3 4 5 6 7 8 9 10
per year year at 5
S alary
percent
1 General M anager 1 45,000.00 540,000.00 567,000.00 595,350.00 625,117.50 656,373.38 689,192.04 723,651.65 759,834.23 797,825.94 837,717.24
2 Production & Technical M anager 1 37,000.00 444,000.00 466,200.00 489,510.00 513,985.50 539,684.78 566,669.01 595,002.46 624,752.59 655,990.22 688,789.73
3 M arketing M anager 1 35,000.00 420,000.00 441,000.00 463,050.00 486,202.50 510,512.63 536,038.26 562,840.17 590,982.18 620,531.29 651,557.85
4 Administration & Finance M anager 1 35,000.00 420,000.00 441,000.00 463,050.00 486,202.50 510,512.63 536,038.26 562,840.17 590,982.18 620,531.29 651,557.85
5 Quality Control M anager 1 35,000.00 420,000.00 441,000.00 463,050.00 486,202.50 510,512.63 536,038.26 562,840.17 590,982.18 620,531.29 651,557.85
6 Production supervisor 3 25,000.00 900,000.00 945,000.00 992,250.00 1,041,862.50 1,093,955.63 1,148,653.41 1,206,086.08 1,266,390.38 1,329,709.90 1,396,195.39
7 Quality Supervisor 3 25,000.00 900,000.00 945,000.00 992,250.00 1,041,862.50 1,093,955.63 1,148,653.41 1,206,086.08 1,266,390.38 1,329,709.90 1,396,195.39
8 M arketing & Sales Supervisor 1 25,000.00 300,000.00 315,000.00 330,750.00 347,287.50 364,651.88 382,884.47 402,028.69 422,130.13 443,236.63 465,398.46
9 Accountant 1 10,000.00 120,000.00 126,000.00 132,300.00 138,915.00 145,860.75 153,153.79 160,811.48 168,852.05 177,294.65 186,159.39
10 Cashier 1 8,000.00 96,000.00 100,800.00 105,840.00 111,132.00 116,688.60 122,523.03 128,649.18 135,081.64 141,835.72 148,927.51
11 Sales Clerk 1 8,000.00 96,000.00 100,800.00 105,840.00 111,132.00 116,688.60 122,523.03 128,649.18 135,081.64 141,835.72 148,927.51
12 Personnel & Archive Secretary 1 6,000.00 72,000.00 75,600.00 79,380.00 83,349.00 87,516.45 91,892.27 96,486.89 101,311.23 106,376.79 111,695.63
13 Purchaser 1 8,000.00 96,000.00 100,800.00 105,840.00 111,132.00 116,688.60 122,523.03 128,649.18 135,081.64 141,835.72 148,927.51
14 Store keeper 1 7,000.00 84,000.00 88,200.00 92,610.00 97,240.50 102,102.53 107,207.65 112,568.03 118,196.44 124,106.26 130,311.57
15 M aintenance Supervisor 1 25,000.00 300,000.00 315,000.00 330,750.00 347,287.50 364,651.88 382,884.47 402,028.69 422,130.13 443,236.63 465,398.46
16 Electrician 2 10,000.00 240,000.00 252,000.00 264,600.00 277,830.00 291,721.50 306,307.58 321,622.95 337,704.10 354,589.31 372,318.77
17 Quality Controller 2 11,000.00 264,000.00 277,200.00 291,060.00 305,613.00 320,893.65 336,938.33 353,785.25 371,474.51 390,048.24 409,550.65
18 M echanic 4 10,000.00 480,000.00 504,000.00 529,200.00 555,660.00 583,443.00 612,615.15 643,245.91 675,408.20 709,178.61 744,637.54
19 Operator 3 8,000.00 288,000.00 302,400.00 317,520.00 333,396.00 350,065.80 367,569.09 385,947.54 405,244.92 425,507.17 446,782.53
20 Assistant Operator 6 5,000.00 360,000.00 378,000.00 396,900.00 416,745.00 437,582.25 459,461.36 482,434.43 506,556.15 531,883.96 558,478.16
21 Labor 10 4,000.00 480,000.00 504,000.00 529,200.00 555,660.00 583,443.00 612,615.15 643,245.91 675,408.20 709,178.61 744,637.54
22 Forklift Operator 3 6,000.00 216,000.00 226,800.00 238,140.00 250,047.00 262,549.35 275,676.82 289,460.66 303,933.69 319,130.38 335,086.89
23 Guard 9 4,000.00 432,000.00 453,600.00 476,280.00 500,094.00 525,098.70 551,353.64 578,921.32 607,867.38 638,260.75 670,173.79
24 Janitor 5 3,000.00 180,000.00 189,000.00 198,450.00 208,372.50 218,791.13 229,730.68 241,217.22 253,278.08 265,941.98 279,239.08
25 Driver 4 80,000.00 3,840,000.00 4,032,000.00 4,233,600.00 4,445,280.00 4,667,544.00 4,900,921.20 5,145,967.26 5,403,265.62 5,673,428.90 5,957,100.35
Total 51 363,500.00 11,988,000.00 12,587,400.00 13,216,770.00 13,877,608.50 14,571,488.93 15,300,063.37 16,065,066.54 16,868,319.87 17,711,735.86 18,597,322.65
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Project Years
Description
1 2 3 4 5 6 7 8 9 10
I. Direct Costs
Raw materials 126,250,000 189,375,000 252,500,000 252,500,000 252,500,000 252,500,000 252,500,000 252,500,000 252,500,000 252,500,000
consumable cst 468,000 468,000 468,000 514,800 566,280 622,908 685,199 753,719 829,091 912,000
Direct labor 4,795,200 4,795,200 4,795,200 5,274,720 5,802,192 6,382,411 7,020,652 7,722,718 8,494,989 9,344,488
Sub-total 131,513,200 194,638,200 257,763,200 258,289,520 258,868,472 259,505,319 260,205,851 260,976,436 261,824,080 262,756,488
II. Indirect Costs
Office Supplies 1,345,000.00 1,345,000.00 1,345,000.00 1,345,000.00 1,345,000.00 1,345,000.00 1,345,000.00 1,345,000.00 1,345,000.00 1,345,000.00
Employees Compensation 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00
Overtime Expense 560,000.00 560,000.00 560,000.00 560,000.00 560,000.00 560,000.00 560,000.00 560,000.00 560,000.00 560,000.00
Electricity 645,000.00 645,000.00 645,000.00 645,000.00 645,000.00 645,000.00 645,000.00 645,000.00 645,000.00 645,000.00
Water 206,400,.00 206,400,.01 206,400,.02 206,400,.03 206,400,.04 206,400,.05 206,400,.06 206,400,.07 206,400,.08 206,400,.09
Fuel 1,032,000.00 1,032,000.00 1,032,000.00 1,032,000.00 1,032,000.00 1,032,000.00 1,032,000.00 1,032,000.00 1,032,000.00 1,032,000.00
Insurance 412,800.00 412,800.00 412,800.00 412,800.00 412,800.00 412,800.00 412,800.00 412,800.00 412,800.00 412,800.00
Repair and maintenance 450,000.00 450,000.00 450,000.00 450,000.00 450,000.00 450,000.00 450,000.00 450,000.00 450,000.00 450,000.00
Spare parts 1,560,000.00 1,560,000.00 1,560,000.00 1,560,000.00 1,560,000.00 1,560,000.00 1,560,000.00 1,560,000.00 1,560,000.00 1,560,000.00
Workshop supplies 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
Equipment Rental Expenses 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00
Labor 870,000.00 870,000.00 870,000.00 870,000.00 870,000.00 870,000.00 870,000.00 870,000.00 870,000.00 870,000.00
Other Administrative costs 2,270,000.00 2,270,000.00 2,270,000.00 2,270,000.00 2,270,000.00 2,270,000.00 2,270,000.00 2,270,000.00 2,270,000.00 2,270,000.00
Marketing 3,200,000.00 3,200,000.00 3,200,000.00 3,200,000.00 3,200,000.00 3,200,000.00 3,200,000.00 3,200,000.00 3,200,000.00 3,200,000.00
Transportation 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00
Periderm 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00
Training 3,300,000.00 3,300,000.00 3,300,000.00 3,300,000.00 3,300,000.00 3,300,000.00 3,300,000.00 3,300,000.00 3,300,000.00 3,300,000.00
Medical expenses 2,580,000.00 2,580,000.00 2,580,000.00 2,580,000.00 2,580,000.00 2,580,000.00 2,580,000.00 2,580,000.00 2,580,000.00 2,580,000.00
Entertainment 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00
Janitorial Supplies 3,680,000.00 3,680,000.00 3,680,000.00 3,680,000.00 3,680,000.00 3,680,000.00 3,680,000.00 3,680,000.00 3,680,000.00 3,680,000.00
Miscellaneous Expenses 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
Sub-total 29,104,800 29,104,800 29,104,800 29,104,800 29,104,800 29,104,800 29,104,800 29,104,800 29,104,800 29,104,800
Total Operating Cost 160,618,000 223,743,000 286,868,000 287,394,320 287,973,272 288,610,119 289,310,651 290,081,236 290,928,880 291,861,288
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Project Years
Description
1 2 3 4 5 6 7 8 9 10
Sales/ Revenue 150,950,000 226,425,000 301,900,000 332,090,000 365,299,000 420,093,850 483,107,928 579,729,513 695,675,416 834,810,499
Less: Operating Costs 160,618,000 223,743,000 286,868,000 287,394,320 287,973,272 288,610,119 289,310,651 290,081,236 290,928,880 291,861,288
Gross Profit -9,668,000 2,682,000 15,032,000 44,695,680 77,325,728 131,483,731 193,797,276 289,648,277 404,746,536 542,949,211
Less: Depreciation 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000
Profit Before Interest & Tax -16,868,000 -4,518,000 7,832,000 37,495,680 70,125,728 124,283,731 186,597,276 282,448,277 397,546,536 535,749,211
Less: Interest Expense 7,931,190 7,525,555 7,054,713 6,508,181 5,873,792 5,137,422 4,282,676 3,290,527 2,138,885 802,111
Profit Before tax -24,799,190 -12,043,555 777,287 30,987,499 64,251,936 119,146,309 182,314,600 279,157,750 395,407,651 534,947,099
Less: Profit Tax 0.00 0.00 0.00 9,296,250 19,275,581 35,743,893 54,694,380 83,747,325 118,622,295 160,484,130
N et Profit -24,799,190 -12,043,555 777,287 21,691,249 44,976,355 83,402,417 127,620,220 195,410,425 276,785,356 374,462,970
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Project Year
Description
0 1 2 3 4 5 6 7 8 9 10
Cash Inflows
Equity 18,000,000
Loan 54,000,000
Net Profit -24,799,190 -12,043,555 777,287 21,691,249 44,976,355 83,402,417 127,620,220 195,410,425 276,785,356 374,462,970
Depreciation 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000
Total Cash Inflows 72,000,000 -17,599,190 -4,843,555 7,977,287 28,891,249 52,176,355 90,602,417 134,820,220 202,610,425 283,985,356 381,662,970
Cash out Flows
Fixed assets 60,000,000
Working Capital 28,800,000
Loan Repayment 7,931,190 7,525,555 7,054,713 6,508,181 5,873,792 5,137,422 4,282,676 3,290,527 2,138,885 802,111
Total Cash Outflows 88,800,000 7,931,190 7,525,555 7,054,713 6,508,181 5,873,792 5,137,422 4,282,676 3,290,527 2,138,885 802,111
Net Cash Flow -16,800,000 -25,530,379 -12,369,110 922,574 22,383,068 46,302,563 85,464,995 130,537,544 199,319,898 281,846,471 380,860,858
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Fixed Total Total Cost

Project Working Capital Initial Replacement Operating Total Income N et Benefit N et Benefit
Revenue Asset Including
Years Recovery Benefits Investment Costs Costs Costs Tax Before Tax After Tax
Recovery Income Tax
0 - 210,000,000 210,000,000 0 210,000,000 -210,000,000 -210,000,000
1 150,950,000 150,950,000.00 0 160,618,000 160,618,000 0 160,618,000 -9,668,000 -9,668,000
2 226,425,000 226,425,000.00 0 223,743,000 223,743,000 0 223,743,000 2,682,000 2,682,000
3 301,900,000 301,900,000.00 0 286,868,000 286,868,000 0 286,868,000 15,032,000 15,032,000
4 332,090,000 332,090,000.00 0 287,394,320 287,394,320 9,296,250 296,690,570 44,695,680 35,399,430
5 365,299,000 365,299,000.00 0 287,973,272 287,973,272 19,275,581 307,248,853 77,325,728 58,050,147
6 420,093,850 420,093,850.00 0 288,610,119 288,610,119 35,743,893 324,354,012 131,483,731 95,739,838
7 483,107,928 483,107,927.50 0 289,310,651 289,310,651 54,694,380 344,005,031 193,797,276 139,102,896
8 695,675,416 695,675,415.60 0 290,081,236 290,081,236 83,747,325 373,828,561 405,594,179 321,846,854
9 695,675,416 695,675,415.60 0 290,928,880 290,928,880 118,622,295 409,551,175 404,746,536 286,124,241
10 834,810,499 84,000,000 15,013,193 933,823,691.71 0 291,861,288 291,861,288 160,484,130 452,345,418 641,962,404 481,478,274
Before Tax After Tax
IRR 31.55% 26.72%
12%
N PV@12% 537,227,873 349,260,404
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Result
Payback Period: 6.092 years
Discounted Payback Period: 7.299 years
Cash Flow Return Rate: 26.72% per year
Cash Flow Net Cash Flow Discounted Cash Flow Net Discounted Cash Flow
Year 0 ($210,000,000.00) ($210,000,000.00) ($210,000,000.00) ($210,000,000.00)
Year 1 ($9,668,000.00) ($219,668,000.00) ($8,632,142.86) ($218,632,142.86)
Year 2 $2,682,000.00 ($216,986,000.00) $2,138,073.98 ($216,494,068.88)
Year 3 $15,032,000.00 ($201,954,000.00) $10,699,480.69 ($205,794,588.19)
Year 4 $35,399,430.00 ($166,554,570.00) $22,496,977.73 ($183,297,610.46)
Year 5 $58,050,147.00 ($108,504,423.00) $32,939,212.39 ($150,358,398.08)
Year 6 $95,739,838.00 ($12,764,585.00) $48,504,781.47 ($101,853,616.61)
Year 7 $139,102,896.00 $126,338,311.00 $62,923,085.86 ($38,930,530.75)
Year 8 $321,846,854.00 $448,185,165.00 $129,988,546.31 $91,058,015.56
Year 9 $286,124,241.00 $734,309,406.00 $103,179,269.69 $194,237,285.25
Year 10 $481,478,274.00 $1,215,787,680.00 $155,023,118.23 $349,260,403.48
Initial Investment
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13.2 Organizational Structure

Board
CEO
General Manager
Administration and Production &Technical Marketing & Quality Control

Finance Manager Manager sales Manager Manager
Supervisor Marketing & sales

Accountant Quality
Supervisor
controller
Cashier
Mechanic Electricia Operators Sales Clerk
s n
Purchaser
Laborer
Store keeper
Personnel, Archive
& Secretary
Guard
Janitor
Driver
Figure 3. Organizational Structure
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Conclusion
Accordingly to the market demands gap analyses & the technical feasibility of the project; it is
applicable to carry out the implementation of the plant.
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Tire Recycling Business Propsal

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Tire recycling investment Project

Ethiopian Construction Works Corporation

Investment Feasibility Study Of Tire Recycling

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 Limited to only on recycling process.

 Increasing the number of car buyers

 Difficulty in collecting worn tyres

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2.1 The Rubber Industry in Ethiopia

2.2 Supply of raw rubber in Ethiopia

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2.3 Use of Tire Rubber Modified Asphalt Binder

Figure 1 Fatigue cracking

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2.4 Local Production

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2.5 Import of rubber products

2.6 Projected Demand of rubber products in Ethiopia

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2.7 Target Market

The government development endeavors in particularly construction of tourist attraction parks,

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2.8 Competitive and Comparative Advantage

2.9 Raw Material Supply

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2.10 Demand and Supply Gap for rubber products

Projected demand and supply gap analysis

2.11 Sells Channel

2.12 Analysis of competition

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2.13 Marketing Strategy

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Description Different taxes Price after tax ECWC Price Difference

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2.15 Promotion and Advertisement

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Major Binding Constraints and Mitigating Strategies

1) Raw martials availability

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Figure 2 Process of recycling the rubber

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3.2.2. Whole Tire Processing

3.2.3. Steel Liberation Stage

3.2.4. Screening and Milling Stage

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3.2.5. Cleaning Stage

3.3 Features of Recycled tires

3.4 The uses of recycled tires

Here are some of the uses for recycled tire material:

3.4.1 Gravel Substitute

3.4.2 Crumb Rubber

3.4.3 Landfill Medium

3.4.4) Wastewater Treatment Filters

3.4.5) Garden Mulch

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Description Unit Qty

Design capacity Tons/day 40

Description Unit P Production year

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1. Production Revenue at Full Capacity

Sr. Description Unit Production at Selling price Annual