Selam Integrated Textile Factory | Bahir Dar University EITEX

SELAM INTEGRATED TEXTILE COMPANY

Justification

The country’s economic development policies are focused to combat poverty through the Agriculture Development-Led Industrialization (ADLI). One of the most important pillars in this regard is development of textile, apparel/garment and leather sector industries. These sector industries use agricultural products as a row material for the production of textile and leather products (e.g. cotton, hide and skin, etc.) Another significant advantage of textile and apparel/garment sectors is creation of a wide range job opportunity both for urban and rural dwellers. As learned from the developed countries industrialization practice, textile and apparel industries create immense employment opportunity to citizens during industrialization development. Accordingly, these sector industries used for transforming rural villages to urbanization and facilitate social transformation and civilization. Therefore, to have all these advantages, the textile and apparel industries development is paramount in all rounds and throughout the country with fast rate in order to alleviate poverty by enhancing industrial development.

In this regard BDU (EiTEX) is attempting to enable its graduates to be able to competent for industry employment and making their own manufacturing enterprise to create job opportunity to themselves and others. With this effort currently 37.4% its graduates are annually engaging in self-employed business activities. In near future the institute has planned majority of its graduates to be job creators rather job seeker

For conducting practical based education, the University (institute) has built state of art laboratories, workshops and teaching and production garment industries within the last decade.

Therefore, having long sited vision, BDU (EiTEX) bought a private-owned garment factory including 146 sewing machines and related accessories, in 2005 with the total cost of 5 million Birr. In order to strengthen practical based education approach, the BDU (EiTEX) aspired to establish an integrated teaching and production textile factory in its compound (Selam campus).

The industrial model shades construction was completed with 341,606,019 ETB (three hundred forty-one million, six hundred six thousand, nineteen birrs).

The factory is planned to be vertically integrated of which consisting of spinning, weaving, knitting, and finishing sections with required utilities.

The wastewater treatment plant is also planned to be installed as important part of the factory for the safety of the environment.

Objectives

t Being a functional Research and Development (R&D) center;

t Internship and Externship Center for Institute Students, Faculty, and Staff, as well as Students from Other Institutes

t To serve as a model and resource for the country's sector industries in terms of improving production and management through short-term training.

t To serve as a technology development and transfer center for local industries.

t Income for the institute/university can be generated through high-level production.

t Create more than 400 job opportunities.

About The project

This draft report on feasibility study for the establishment of Selam Integrated Textile Teaching and Production Company is prepared by the Ethiopian Institute of Textile and Fashion Technology (EiTEX) of Bahir Dar professional and expert team as per the assignment of the organization. The report consists of market, technical and financial analyses components on the feasibility study of the envisaged plant.

This feasibility study is prepared to examine the viability of Selam Integrated Textile Teaching and Production Company (SiTEX) for establishing an integrated textile plant by setting up of value-added Spinning, Weaving, Knitting and Textile Finishing lines. Integrated Textile Company is planning will be located in Bahir Dar city, Amhara Regional State. The specific location is in Kebele 08 area near by wisdom tower in the vicinity of Bahir Dar University at Selam (EiTEX) campus compound. The company is planning to sale its 25% of product to the export market and the rest 75% will be availed to the local market. The proposed sale plan will concentrate both on export and domestic markets for woven and knitted fabric where the company has an excellent portfolio of clients with long and good relationship based on mutual trust. The yarn spinning plant will have a capacity of 3982 tons of yarn per year with an average count of 21.8 Ne which will supply to the weaving and knitting plants. Annually 3,580 tons of cotton and 398 tons of polyester fibers will be used for yarn production. The fabric manufacturing plant targets to manufacture a total of 3903 tons of fabric per annum. The total fabric production from weaving plant will be 1224 tons per year and the total production of fabric from knitting plant will be 2702 tons per year. The textile fabric finishing line i.e dyeing, printing and final finishing of the company will have a finishing capacity of 3927 tons per annum for the production of finished fabrics comprising white (20%), dyed (60%) and printed (20%) articles.

The investment required for the project is estimated to be approximately USD 29,027,577 million. The cost covers initial investment costs, working capital requirements and pre-operating expenses.

Selam integrated textile factory

Current status

The garment factory and part of the knitting factory are currently operational. However, spinning, weaving, finishing, and additional knitting machinery will be acquired and installed at a later stage.

Knitting factory

The factory is equipped with a total of 4 circular knitting machines, including 2 single jersey machines (plain and jacquard) and 2 double jersey machines (rib and interlock). Additionally, there are 4 flat knitting machines (Protti & Stoll), 5 sock machines (Santoni), and one warp crochet knitting machine.