TIRET October 2012 Issue - MIDROC Ethiopia

Chipped wood ready for drying
development and smooth functioning of the factory.
The strong support and effort made by AHFA Plc to
promote and introduce the products to the market and
build the product demand to its present status is worth
mentioning.
In the future, the surrounding out growers who will
supply wood (log) and play a significant role to the
factory will also be the factory’s development partners.
Future Development Plan
At present the factory is supplying sanded board, but
market study about the consumption of laminated
wood for furniture manufacturing and panelling in the
country is underway inorder to select the ideal type of
lamination plant. The factory is also considering the
possibility of exporting its products; preparation to meet
the required standards is already in progress.
When the factory begins production at full capacity,
its annual turnover is estimated to reach over Birr 78
million.
Part of the future plan includes cutting energy expenses
by at least 20% by substituting current oil consumption
with cheaper alternatives. The factory’s current annual
consumption of fuel oil, in addition to electricity, is 1.1
million litres. The cost of fuel is continually rising without
any sign of stabilizing. The price of oil has gone from
Birr 4 a liter to Birr 15.24 in just three years. This is
an increase of over 275%. The factory is working at
In focus
Products of the Factory
present to substitute as much as 20% of the fuel it uses
at the dryer burner by wood dust recovered from the
sanding process.
Maintaining Standard in the Business
Customers have very high demand for the factory’s
product, which is the leading brand in the current market.
Due to the unique behaviour of the product, such as
medium density, low thickness swelling, high bending &
tensile strength, the board is preferred by customers for
multi purpose consumption and has therefore, proved
to be customer’s first choice. To maintain its standard,
the factory regularly surveys the market collecting
information and feedback from customers. Reviewing
standards based on customer feedback; strengthening
the quality control system starting from approval of
raw material to the final product; and integrating the
activities of different departments has become more
important than ever before.
Social Responsibility & Safety Protection
In addition to the wood land it is managing in
Wolayta Sodo, the factory has plans to support local
development activities such as road construction, water
development and installing milling machines for the
society surrounding the plantation. It also provides
its employees with recommended safety protection
devices and training on fire fighting procedures and
precautions.
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