EGK 2011: Agriculture 07 FORTUNE

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EGK 2011: Agriculture 07 FORTUNE

  1. 1. 1 Presentation on Industrial Processing Bamboo 11/11/11 Addis Ababa, Ethiopia Khalid M. DURI
  2. 2. 2 Overview
  3. 3. 3 Agenda • Objective • Bamboo Market • Bamboo in Ethiopia • Current Status • Supply Chain • Industrial Processing of Bamboo • International Market for Bamboo Products • Stakeholders
  4. 4. Objective & strategy4 Fortune Enterprise will become an African exporter of compressed panels and decking material produced from domestically grown bamboo, thereby providing the world market with a highly competitive alternative for hardwood composites and bamboo products from China. Key success factors: • Tubes of Ethiopian highland bamboo are more straight, contain less starch and more fibre than the Chinese Moso varieties, making it very suitable for outdoor applications. • Lower labour costs & raw material price (-20%) than China • Incentives Ethiopian government: profit tax holiday and zero import tax • Technical assistance secured • Experienced international Staff 20 Germans and 5 Chinese • High certified quality (EN350-2; E1, EN-350-Part 1, EN 335, CEN/TS 15083, EN 113, EN ISO/IEC 17025:2005, ISO 14000; ISO 9001) • Cooperation and market access through Elephant Bambusprodukte GmbH.
  5. 5. Objective & strategy5 Specific company objectives: 1. Source bamboo splits through an outgrower scheme and own plantations in Ambo and Sidama • outgrower scheme: 2,000 ha, 4,000 farmers organized in some 30 coops, 30 collections centres • 1,500 ha plantation, 500 ha established per year from own nursery (cuttings) • at full capacity, factory requires 2,2 mio culms annually • first four years, raw material supply solely through outgrowers • first harvest plantation in yr 4 (8%), full productivity yr 12 2. Establish industrial bamboo production in Ethiopia consisting of two regional pre-processing plants (Tikur Inchini , Ambo and Titicha, Sidame) and a main factory in Welmera producing compressed panels destined for the export market. 3. Produce 245,000 m2 of compressed bamboo panels during first year of production (2013) worth Eur 3.9 Mio, increasing to 500,000 m2 per year from year 3 onwards (2016) worth Eur 15 Mio. 4. To lay the ground for further investments in the Ethiopian bamboo sector. Investing in more private plantations and product diversification.
  6. 6. What has been done ( 2009-2011)6 • Bamboo Task Force • In October 2009, Public Private Partnership worth € 400,000. Main activities: - analysis into competiveness of Ethiopia bamboo - numerous feasibility studies to determine technology and product - market & technology investigation in Europe and China - Initial inventory and assessment of standing bamboo culms in Ambo and Sidama - prototypes development from Ethiopian Bamboo species for testing and certification at Fraunhofer Institute for Wood Research - establishment of outgrowers scheme in Ambo, encompassing over 250 farmers organised in 5 Coops
  7. 7. What has been done ( 2009-2011)7 • Commercial contract with Elephant Bambusprodukte GmbH for the first 750,000m2 valued at EUR 18.75m annually for next five years. • Profound technical assistance secured during the start up phase of the project. • Land secured for plantation development ( 1,500 ha at two different regions), nursery site ( 1 ha each, at two locations), pre-processing plants ( 5 ha each, at two locations), and main factory ( 10 ha). • Finalization of proforma based machinery and equipment list. • Finalized production planning and flow chart. • Award of highly competitive grant programme in June 2011 to Elephant and FE partnership, funded through the Dutch Private Sector Investment Programme (PSI). The total project budget is € 1.5 mio of which 50% is a result-based grant. • Raised debt totalling Eur 7Mio, raised Eur 5M in Equity, total Project Budget Eur 12M
  8. 8. 8 Bamboo Development 2011 - 2013 PPP with GIZ Acquiring Private Sector Investment Third Party Funding Long Term Loan Strategic Alliance International Climate Initiative EU Energy Facility
  9. 9. 9 Bamboo Development 2009 - 2011 PPP with GIZ Market Development
  10. 10. 10 Bamboo Development 2009 - 2011 PPP with GIZ
  11. 11. 11 Bamboo Resource in Ethiopia • Ethiopia has 1 million ha of bamboo • It accounts to 67% of African‘s bamboo resource • 30% being high land bamboo and • 70% is low land bamboo
  12. 12. Status quo of Bamboo in Ethiopia12 + ETH accounts for 67% of Africas Bamboo resource + 1 Mio. ha Bamboo coverage in total (estimation) + 30% highland, 70% lowland bamboo + Bamboo is one of the fastest growing plants on earth with great potential for reducing pressure on forests + a quickly-renewing and sustainable source of biomass + vital role in environmental amelioration, bio-diversity preservation, soil and water conservation + can serve as substitute for traditional woods which are mostly imported from abroad due to their scarcity in Ethiopia
  13. 13. Status quo of Bamboo in Ethiopia-13- Image Problem • Value of Bamboo has not been recognized yet • Unawareness about high quality of Bamboo- Weakness of the Economic Environment • State-led and NGO initiatives of the past have promoted the bamboo sector only on household level • Development of the private sector has been insignificant so far • No industrial use of Bamboo so far- Lack of Credit and Financing • No microfinance for MSEs like farmers and cooperatives so far • Poor capital endowment and access to credits have prevented industries from up-scaling their bamboo-related activities
  14. 14. Bamboo resource map of Ethiopia
  15. 15. Establishment of a Wood Processing Industry in Ethiopia STANDARDS/QUALITY15 Testing centers Technical Committee Adapt EU+ISO Standards Produce Quality Manuals INSTITUTES Fraunhofer Institute Ethiopian Standard Authority SUPPLY CHAIN Ethiopian/International Universities Institutionalization Cluster of Excellence Six more locations Student workshops Support for Cooperatives Practical curricula Commercial FS Twinning arrangements WOOD INDUSTRY Market Assessment Plan Focus areas: machinery, Establishment design, glue Private sector, SMEs, of a Wood Processing Investment Agency, Export Promotion IndustryMoARD in Ethiopia Banks, MFIs MoTI, Machinery/Glue manufacturers ENVIRONMENT/ Sub-sectors MARKET FORESTRY Bamboo Baseline Inventory Import substitution Impact Assessment Export/National Market Develop carbon credit scheme Participation in trade fairs Forest Stewardship Council Marketing Sustainable Participatory Forest Fair Trade Certificate Management
  16. 16. 16 Core Areas of Resource
  17. 17. 17 Characteristics of Yushania alpina • Yushania alpina is high land bamboo • Height is 5-19.5 meters(average12 m.) • The diameter ranges from 5-12.5cm • The average weight is 8 kgs (oven dry wt)
  18. 18. Supply chain Raw material resource.1 – From existing farmersbamboo plots (2000 ha)2- Establishing our ownbamboo plantation (1500ha)
  19. 19. 19 Supply Chain Model 4,000 Farmers -> 2,000 ha -> 1,000 culms/ha -> 2 Mio culms/year 2 Mio culms/year 30 Regional Collection Centers
  20. 20. 21 Scope of the involvement • 4000 farmers • Average of 0.5 ha • 30 cooperatives 2000 hectares of bamboo plots 2 million culms per year at the beginning
  21. 21. 22 Farmers bamboo plots
  22. 22. 23 Bamboo Supply Chain Bamboo Farmer A Bamboo Farmer Bamboo Farmer B Bamboo Bamboo Farmer C Pre-Processing Bamboo Plant in Cooperati Bamboo Tetecaha ve Cooperative - nod removal Collection - boiling center - carbonizing, - drying --storage Sidama 70% Bamboo Farmer Bamboo Bamboo Pre-Processing Main factory Farmer Bamboo Plant in Tikur at Wolmera Bamboo Inchini Farmer Bamboo Cooperative Coopera Collection - removal of tive center nods - boiling - carbonizing, - drying - storage - ….Ambo 30%
  23. 23. 24 Production Calculation and Processing
  24. 24. General Production Flow Chart of WSB25Cooperatives Collection centers Pre-processing Main Industry Customer
  25. 25. Collection Centers26
  26. 26. Pre-processing Plant – Sidama and Ambo27
  27. 27. Industrial Plant until Hot Press28
  28. 28. 29 Industrial Plant After Hot Press
  29. 29. Overall Material Balance Ton/Year Ton/day Containers/day30Fresh bamboo 40920 205 10 Dry matter 19032 95 Moisture/Water 21887 109After dry matter loss 20% Total dry 15226 76 4 starch 1066 5 Other than starch 14160 71 From 7% to 2%After Starch removal Total dry 14449 72 4 Starch 289 1.4 Other starch 14160 71Glue consumption 2102 6 0.3
  30. 30. Panel production (2600x1300x46mm)31 90,144 panel/year 14,016 m³/year 16,118 tons/year 247 panel/day 38 m³/day 44 tons/day Final Board production (2440x140x20mm) 1,442,304 boards/year 9,854 m³/year 492,691m²/year 11,332 tons/year 3,952 boards/day 27 m³/day 1,350 m²/day 31 tons/day Oil 0.039284 l/board 56,659 l/year 155 l/day
  31. 31. 594 Containers/year32 ≈2 Containers/day
  32. 32. 33 Production flow and Machinery Layout
  33. 33. 34 China study tour • Fortune Enterprise has done a study tour to China two times to understand the WSB production scheme. • Some of the WSB production factories visited in china were: 1. Werner flooring 2. Anhui Fengtian Bamboo Manufacturing 3. Wuxi Senda Bamboo & Wood Products CO.LTD. 4. Xingli ( Everjade) Bamboo Products Co 5. Three WSB factories in Anji province 6. DASSO flooring …etc
  34. 34. 35 China study tour • Fortune Enterprise after visiting some WSB factories in China , has selected the below stated machines for its production of WSB outdoor decking.
  35. 35. 36 Source of Bamboo • 30 Bamboo Co-operatives • 2 million bamboo culms
  36. 36. 37 Collection Center Manual Cutting Manual splitting
  37. 37. Pre-Processing plant ( bamboo culm38 processing machine) Splitting machine Cutting machine Blade glinder Node remover Crushing machine Slicing machine
  38. 38. Pre-processing plant (starch removing39 process) Bleaching tab Carbonizer Drying tunnel
  39. 39. 40 Pre-Processing (Transportation) Trolley Pallet carrier Tractor Trailer truck Motor bike forklift
  40. 40. 41 Pre-Processing (supplementaries) Gen set Steam Boiler transformers Sewer purification Air compressor
  41. 41. 42 Main Industrial Plant Crushing Drying tunnel machine before glue
  42. 42. 43 Main Industrial plant (Glue ) Glue Mixer Glue reactor Glue Immersing pool and electric hoist Glue drying tunnel.
  43. 43. 44 Main Industrial plant (hot press)
  44. 44. Main Industrial plant ( after the press45 machineries) Length cutting Width cutting and plank dividing machine Four side Curing planning and chamber slicing machine
  45. 45. Main Industrial plant ( after the press46 machineries) Top bottom sanding Width Endgrooving (tongue and groove) Universal Tool Riffiling, Grinder profiling, Length grooving
  46. 46. 47 Main Industrial plant ( oiling) Oiling machine Drying tunnel
  47. 47. 48 Main industrial plant ( packaging) cartons Wrapping machine pallets Strapping roll Packaging machine
  48. 48. 49 Main Industrial Plant ( Transportation) Truck Pallet carrier forklift
  49. 49. 50 Main Industrial plant (supplementaries) Gen set Boiler Transformers Air compressor
  50. 50. 51 Main Industrial plant (supplementary) Weighing scale Dust extraction Waste gas treatment Weighing bridge
  51. 51. 52 Machinery supplier visited • Fortune Enterprise has visited many bamboo making machinery companies • Some of the companies visited are: 1. Qingdao Guosen 2. Anji Yukang Machinery 3. Hangzhou Garden Corporation 4. Shanghai Wood Based Panel Machinery - Dieffenbacher Group 5. Fujian Jinmen 6. Changshan hot Press manufacturer .. etc
  52. 52. 53 Machinery supplier selected • Form the companies visited Guosen, Anji Yukang and Garden corporation has provided quotation for the full line machineries. • From the information gathered Guosen presses are currently big in the market. • They have provided us reasonably better specification of the machineries compared to the other two manufacturers. • even if Also Guosen is a bit expensive in price, compared to the other two they have helped us with our production flow, machinery requirement and factory design. • Finally after considering the above selection criterias, We have decided to buy the full line machineries from Qingdao
  53. 53. 54 Design and Construction
  54. 54. 55 Design & Construction 1. Design & Construction of the Plant  Collection Centers  Pre-processing Plant  Main industrial factory
  55. 55. 56 Collection Center Plan Total Area of the collection Center =1762 m2 Total Built Up Area=338 m2
  56. 56. 57 Collection Centers…
  57. 57. 58 Pre-Processing Plant • The two Pre-Processing plants are located 1. Sidama Zone, Tetecha Wereda,355 km from Addis Ababa. Total Area allocated=50,000 m2 1. West Shewa Zone,Tikur inchini,147 Km from Addis Ababa. Total Area allocated=50,000 m2
  58. 58. 59 Pre-processing Plant site at Tetecha
  59. 59. 60
  60. 60. 61 Locations of the proposed plants Tetecha
  61. 61. 62 Construction of the preprocessing plants • The construction of the pre-processing plants Can be categorized in to two: 1. Sub-structure-Mainly includes, Excavations, earth works and flooring either with concrete or cobble stone. 2. Super structure-Mainly includes Construction of bamboo columns, beams and trusses.
  62. 62. 63 Proposed bamboo structures
  63. 63. 64 Main Industrial Factory • The Main industrial plants is located 1. West Shewa Zone, Wolmera Wereda,20 Km from Addis Ababa. Total Area allocated=100,000 m2
  64. 64. 65 Main industrial Factory Google Map
  65. 65. 66
  66. 66. 67 Plan of the main Industry at Wolmera
  67. 67. 68 Bamboo Development 2011 - 2013 Private Sector Investment
  68. 68. 69 • Thank you for your attention Fortune Enterprise PLC Phone: +251-115-51-38-62 Fax: +251-115-51-77-05 Office: FinFinne Building, Meskel Square, Addis Ababa, Ethiopia

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