06-05-2014, 01:20 PM
PROFILE ON PRODUCTION OF ETHYL ACETATE
[attachment=62908]
SUMMARY
This profile envisages the establishment of a plant for the production of ethyl acetate with a
capacity of 50 tonnes per annum.
The present demand for the proposed product is estimated at 28 tonnes per annum. The
demand is expected to reach at 50 tonnes by the year 2022.
The plant will create employment opportunities for 18 persons.
The total investment requirement is estimated at Birr 3.38 million, out of which Birr 1.89
million is required for plant and machinery.
The project is financially viable with an internal rate of return (IRR) of 13 % and a net
present value (NPV) of Birr 708,880, discounted at 8.5%.
Production Programme
Considering the gradual development of processing skill and marketing of the product, the
rate of capacity utilization during the 1st and 2nd year of production will be 70 and 90%,
respectively. Full capacity will be attained in the third year and then after. Table 3.3 shows
the production programme of the proposed project.
PRODUCTION COST
The annual production cost at full operation capacity is estimated at Birr 1.35 million (see
Table 7.2).
The material and utility cost accounts for 34.16 per cent, while repair and
maintenance take 8.39 per cent of the production cost.
[attachment=62908]
SUMMARY
This profile envisages the establishment of a plant for the production of ethyl acetate with a
capacity of 50 tonnes per annum.
The present demand for the proposed product is estimated at 28 tonnes per annum. The
demand is expected to reach at 50 tonnes by the year 2022.
The plant will create employment opportunities for 18 persons.
The total investment requirement is estimated at Birr 3.38 million, out of which Birr 1.89
million is required for plant and machinery.
The project is financially viable with an internal rate of return (IRR) of 13 % and a net
present value (NPV) of Birr 708,880, discounted at 8.5%.
Production Programme
Considering the gradual development of processing skill and marketing of the product, the
rate of capacity utilization during the 1st and 2nd year of production will be 70 and 90%,
respectively. Full capacity will be attained in the third year and then after. Table 3.3 shows
the production programme of the proposed project.
PRODUCTION COST
The annual production cost at full operation capacity is estimated at Birr 1.35 million (see
Table 7.2).
The material and utility cost accounts for 34.16 per cent, while repair and
maintenance take 8.39 per cent of the production cost.