Proposal to Establish Manufacturing Plant Silica Refractory Material

productions from Local Silica Sand Resource in Ethiopia

By

Addis Ababa, Ethiopia

March 2024
 TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTIONS...........................................................................................1

1.1. Background of the project........................................................................................................1

1.2. Problem Statement and justifications.......................................................................................4

1.3. Objective of Project..................................................................................................................8

1.4. The scope of the project............................................................................................................9

1.5. Design and Method of study...................................................................................................11

1.5. 1. Design of the study.............................................................................................................11

1.5.2. Target Populations...............................................................................................................11

1.5. 3. Sampling Size.....................................................................................................................11

1.5. 4. Sampling Technique...........................................................................................................11

1.5. 5. Data Quality Assurance......................................................................................................11

1.5. 6. Data Collection Tool...........................................................................................................12

1.5. 7. Data Analysis......................................................................................................................12

1.6. Project Procedure....................................................................................................................12

1.6.1 Project Design and Layout....................................................................................................12

1.6.2 Location and Site Assessment..............................................................................................12

1.6.3 Production Program and Plant Capacity...............................................................................15

REFERENCE................................................................................................................................16
 CHAPTER ONE: INTRODUCTIONS

1.1. Background of the project

Silica refractory material is a critical material used in various industrial applications, including

foundry, glassmaking, and metallurgy. The availability of high-quality silica sand is essential for

the production of silica refractory material. The effectiveness of the manufacturing process

depends on the quality and availability of silica sand resources. From a global perspective, silica

refractory material is a critical material used in various industrial applications, including foundry,

glassmaking, and metallurgy. The global market for silica refractory material is driven by the

growth of the industrial sector, particularly in emerging economies such as China, India, and

Brazil. The demand for high-quality silica refractory material is expected to grow at a steady

pace in the coming years, driven by the expansion of the construction, automotive, and aerospace

industries.

In many countries, including China, India, and the United States, there is a significant demand-

supply gap for silica refractory material. As a result, these countries rely on imports to meet the

growing demand for this critical material. The establishment of manufacturing plants to produce

silica refractory material from local silica sand resources has been identified as a viable solution

to address this issue.

In Ethiopia, the availability of abundant silica sand resources in the Jema river region presents an

opportunity to establish a manufacturing plant to produce silica refractory material. The

Ethiopian industrial sector is growing, and there is a significant demand for high-quality silica

refractory material to support this growth. However, the country currently relies on imports to

meet this demand, leading to a supply-demand gap and increasing the cost of production for

industries that rely on this critical material.

The establishment of a manufacturing plant to produce silica refractory material from local silica

sand resources in Ethiopia will provide a reliable and affordable source of this critical material,

contributing to the competitiveness of the Ethiopian industrial sector. It will also create job

opportunities and generate income for the local community, contributing to the development of

the local economy. The project will also enhance the capabilities of the Ethiopian industrial

sector by transferring technology and knowledge.

The background literature review highlights the importance of high-quality silica sand resources

for the production of silica refractory material and the effectiveness of the manufacturing

process. The availability and effectiveness of local silica sand resources are critical factors in the

establishment of a manufacturing plant to produce silica refractory material. The use of advanced

processing technology and quality control measures can enhance the effectiveness of the

manufacturing process, resulting in high-quality silica refractory material.

Empirical studies have also shown the potential for the establishment of a manufacturing plant to

produce silica refractory material in Ethiopia.

A study conducted by the Ethiopian Institute of Technology (2019)-Mekelle found that the Jema

river region has abundant silica sand resources that are suitable for the production of silica

refractory material. The study also found that the establishment of a manufacturing plant to

produce silica refractory material from local silica sand resources would create job opportunities

and generate income for the local community, contributing to the development of the local

economy.

Another study conducted by the Ethiopian Ministry of Industry found that the establishment of a

manufacturing plant to produce silica refractory material from local silica sand resources would

contribute to the development of the Ethiopian industrial sector. The study identified the growing
demand for high-quality silica refractory material in Ethiopia and neighboring countries and the

need to establish a reliable and affordable source of this critical material.

In conclusion, the literature and empirical review highlight the potential for the establishment of

a manufacturing plant to produce silica refractory material from local silica sand resources in

Ethiopia. The availability of abundant and high-quality silica sand resources in the Jema river

region presents a significant opportunity to address the supply-demand gap for this critical

material in Ethiopia and neighboring countries. The establishment of a manufacturing plant will

contribute to the development of the local economy, enhance the competitiveness of the

Ethiopian industrial sector, and create job opportunities for the local community.

1.2. Problem Statement and justifications

According to the Ethiopian Customs Commission, Ethiopia imported a total of $8.2 million

worth of refractory materials in 2019 to 2022. However, the specific amount of silica refractory

material imported is not readily available. The majority of the imported refractory materials are

used in the cement, steel, and glass industries, which are growing rapidly in Ethiopia. The

dependency on imported refractory materials is due to the limited local manufacturing

capabilities and the lack of locally sourced raw materials. The importation of refractory materials

is expensive and not always readily available, which can hinder the growth and sustainability of

the manufacturing sector in Ethiopia.

The development of local manufacturing capabilities for refractory materials, including silica

refractory materials from locally sourced silica sand in Jema River, can reduce the dependency

on imported materials, increase local production, and promote sustainable economic growth in

Ethiopia. Because of Ethiopia has a significant potential for the manufacturing of silica

refractory materials due to the availability of locally sourced silica sand. However, there is
limited research on the feasibility and optimization of using locally sourced raw materials for the

manufacturing of silica refractory materials. This has resulted in a heavy reliance on imported

refractory materials, which are expensive and not always readily available.

There is a need to develop local manufacturing capabilities for silica refractory materials to

reduce costs, increase availability, and promote sustainable economic growth in Ethiopia. The

substitution for the import of silica refractory materials is the local manufacturing of silica

refractory materials using locally sourced raw materials, such as silica sand from Jema River in

Ethiopia. The feasibility of manufacturing silica refractory materials from silica sand in Jema

river of Ethiopia is based on several important factors:

 Availability of raw materials: Jema River in Ethiopia is known to have significant

deposits of silica sand, which can be used as a raw material for the manufacturing of

silica refractory materials. The availability of locally sourced raw materials can ensure a

consistent supply of silica refractory materials for high-temperature industrial

applications.

 Manufacturing process: The manufacturing process for silica refractory materials from

silica sand involves several steps, including beneficiation, calcination, and sintering. The

feasibility of the process depends on the availability of the necessary equipment,

expertise, and infrastructure.

 Quality and performance: The quality and performance of the resulting silica refractory

material from locally sourced silica sand should meet the requirements of high-

temperature industrial applications. The feasibility of the project depends on the ability to

optimize the manufacturing process to meet the required quality and performance

standards.
  Cost: The cost of manufacturing silica refractory materials from locally sourced silica

sand should be competitive with the cost of imported materials. The feasibility of the

project depends on the ability to reduce costs through the utilization of locally sourced

raw materials, optimization of the manufacturing process, and efficient use of resources.

Project Justification:

The manufacturing of silica refractory material from silica sand in Ethiopia is important because

it bridges the gap between the demand and supply of refractory materials in the country.

Currently, the demand for refractory materials in Ethiopia is high due to the growth of the

manufacturing sector. However, the supply of refractory materials is limited, and the majority of

the materials are imported, which is expensive and not always readily available.

By using locally sourced silica sand from Jema River to manufacture refractory materials, the

project can reduce the dependency on imported materials and ensure a consistent supply of

refractory materials for high-temperature industrial applications. Additionally, the project can

create job opportunities, increase local production, and promote sustainable economic growth in

Ethiopia.

Furthermore, the project bridges the gap between the availability of raw materials and the

specialized knowledge and expertise required for the manufacturing of refractory materials. The

project involves characterizing the properties of the silica sand, developing and optimizing the

manufacturing process for the refractory material, and evaluating the performance of the

resulting material in high-temperature applications. This will contribute to the development of

local manufacturing capabilities and promote knowledge transfer in materials science,

engineering, and manufacturing processes.

1.3. Objective of Project
The general objective of the project for manufacturing silica refractory material from silica sand

in Jema river of Ethiopia is to establish a sustainable and profitable business that contributes to

the development of the local economy and meets the growing demand for high-quality silica

refractory material in Ethiopia and neighboring countries.

The specific objectives of the project are:

1) To establish a manufacturing plant to produce silica refractory material from local silica

sand resources in the Jema river region of Ethiopia.

2) To contribute to the development of the local economy by creating job opportunities and

generating income for the local community.

3) To improve the competitiveness of the Ethiopian industrial sector by providing high-

quality silica refractory material.

4) To implement environmental and social standards and practices, minimizing the impact

on the environment and local communities.

5) To ensure the long-term sustainability of the business by implementing efficient and

effective management practices and continuously improving the quality of the product

and services.

1.4. The scope of the project

The scope of the project for manufacturing silica refractory material from silica sand in Jema

river of Ethiopia includes:

 Feasibility Study: Conducting a feasibility study to determine the viability of the

project and to identify the potential risks and challenges.

 Site Selection: Identifying and selecting a suitable location for the manufacturing

plant, this should be close to the raw material source and have access to transportation

facilities.

 Raw Material Acquisition: Sourcing high-quality silica sand from Jema River or other

nearby sources.

 Processing: Establishing a processing plant to convert silica sand into silica refractory

material through various processes such as crushing, grinding, screening, and mixing.

 Equipment and Machinery: Procuring and installing the necessary equipment and

machinery required for the manufacturing process, including crushers, grinders,

screens, mixers, and furnaces.

 Marketing: Developing a marketing strategy to promote the product and establish a

customer base in Ethiopia and neighboring countries.

 Environmental and Social Impact: Conducting an environmental and social impact

assessment to identify and mitigate any adverse effects on the environment and local

communities.

 Financial Plan: Developing a comprehensive financial plan that includes the initial

investment, operating costs, revenue projections, and return on investment.

 Legal and Regulatory Compliance: Ensuring compliance with all legal and regulatory

requirements for establishing and operating a manufacturing plant in Ethiopia.

 Continuous Improvement: Implementing continuous improvement measures to

enhance the efficiency and effectiveness of the manufacturing process, product

quality, and customer satisfaction.

1.5. Design and Method of study
1.5. 1. Design of the study

The project design will be a descriptive study that aims to determine the feasibility of

establishing a silica refractory material production plant in Jemma River, Ethiopia. The study

will be conducted through a comprehensive analysis of the market demand, availability of raw

materials, and the overall economic viability of the project.

1.5.2. Target Populations

The target population of the project includes various industries that require high-quality silica

refractory materials. These industries include steel mills, cement plants, glass factories, and other

industrial facilities that require high-temperature insulation materials.

1.5. 3. Sampling Size

The sample size for the study will be determined based on the available data and the level of

precision required. A larger sample size will be used to ensure the accuracy and reliability of the

findings.

1.5. 4. Sampling Technique

The sampling technique will be a purposive sampling method, where potential customers,

suppliers, investors, and government agencies involved in the mining and manufacturing sectors

will be selected based on their relevance to the study.

1.5. 5. Data Quality Assurance

To ensure data quality, the research team will use reliable and valid sources of data and employ

appropriate data collection and analysis methods. The team wills also cross-check the data to

ensure its accuracy and completeness.

1.5. 6. Data Collection Tool
The research team will use a combination of primary and secondary data sources to collect data.

The primary data sources will include surveys, interviews, and focus group discussions with

potential customers, suppliers, investors, and government agencies. The secondary data sources

will include published reports, industry publications, and online databases.

1.5. 7. Data Analysis

The data collected will be analyzed using statistical software to identify trends, patterns, and

relationships between variables. The findings will be presented in tables, charts, and graphs, and

a comprehensive report will be prepared that summarizes the results of the study and provides

recommendations for establishing a silica refractory material production plant in Jemma River,

Ethiopia.

1.6. Project Procedure

This chapter outlines the procedures that will be used by AMORE PLC to establish a silica

refractory material production plant in Jemma River, Ethiopia.

1.6.1 Project Design and Layout

The project design and layout will be developed based on the results of the feasibility study. The

layout will be designed to ensure efficient production processes, with consideration given to

safety and environmental regulations. The plant will be designed to have a capacity that meets

the demand for refractory materials in Ethiopia, with room for expansion in the future.

1.6.2 Location and Site Assessment

The location and site assessment are an important aspect of determining the suitability of a site

for the establishment of a production plant. In the case of AMORE PLC’s plan to establish a

silica refractory material production plant in Jemma River, Ethiopia, a thorough site assessment
is necessary to determine the suitability of the site. The site has been assessed, and it has been

confirmed to be suitable for the establishment of the production plant. The site is located close

to the source of raw materials, and it has good road and rail connections to major cities in

Ethiopia. See the map below:

From above figure location and site assessment for AMORE PLC's silica refractory production

plant in Jema River, Ethiopia is an essential aspect of determining the feasibility of establishing

the plant. The following elaborations provide more information on the various aspects of the

assessment:

Reason for Jema River Location: Jema River was chosen as the location for AMORE PLC's

silica refractory production plant due to its proximity to the source of raw materials required for

the production process. The sites also have access to necessary infrastructure, such as

transportation links, that make it an ideal location for the production plant. The studies evaluate

the suitability of the location and assessed the potential benefits and drawbacks of establishing

the plant in Jema River.

Safety and Security Assessment: The safety and security assessment are an important aspect of

the location and site assessment for AMORE PLC's silica refractory production plant. The study

evaluates the safety and security risks associated with the location, including any potential risks

to employees, equipment, and the surrounding community. The study also assesses the necessary

measures to mitigate these risks, such as security systems, emergency response plans, and safety

training for employees.

Liberality of Daily Labor: The availability of a liberal daily labor force is an important

consideration for the establishment of AMORE PLC's silica refractory production plant. The

study has evaluated the availability and quality of the local labor force in Jema River and the

surrounding areas, including the necessary skills and experience required for the production

process. The study also assessed the necessary measures to ensure the safety and well-being of

the employees, such as providing adequate training, compensation, and benefits.

Cost Effectiveness: The cost-effectiveness of the location and site is an essential consideration

for the establishment of AMORE PLC's silica refractory production plant. The study should

evaluate the cost of establishing the plant in Jema River, including the cost of land, construction,

equipment, and labor. The study should also assess the potential return on investment and

profitability of the production plant.

Environmental Friendliness: The environmental impact of the location and site is an essential

consideration for the establishment of AMORE PLC's silica refractory production plant. The

study was evaluated the potential environmental that has no impact of the production process,

including any potential air or water pollution, waste management, and carbon emissions. The

study should also assess the necessary measures to mitigate these impacts, including
environmental monitoring, waste management systems, and the use of sustainable production

practices.

1.6.3 Production Program and Plant Capacity

The production program and plant capacity are important aspects of determining the efficiency

and profitability of a production plant. In the case of AMORE PLC’s plan to establish a silica

refractory material production plant, the production program and plant capacity have been

designed to ensure the efficient use of resources and the production of high-quality refractory

materials. The plant will have a capacity of 10,000 tons per year, and it will operate on a 12-hour

basis to meet the demand of customers.

Conclusion: the methods and procedures outlined in this chapter will guide AMORE PLC in the

establishment of a silica refractory material production plant in Jemma River, Ethiopia. The

company will ensure that all activities are carried out in accordance with safety and

environmental regulations. The company will also prioritize the recruitment and training of local

workers to contribute to the development of the area.

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