EIC-Chipboard

Chipboard is a rigged panel made from process eucalyptus tree and other wood. It is used in the construction and wood work industries. This profile envisages the establishment of a plant for the production of chipboard with a capacity of 936,000.00 m3 per annum. Chipboard is used in the construction industry as prefabricated houses or as ceiling materials in monolithic structure and in the furniture and wood industries as a substitute for wooden boards. The demand for chipboard in Ethiopia is met both from import and domestic production. The present (2022) demand for chipboard is estimated at 6,043 million cubic meters. The principal raw materials required by the envisaged plant are eucalyptus tree logs and glue which are locally available. The total investment cost of the project including working capital is estimated at $ 5 million. The project can create employment for 141 persons. The establishment of such factory will have a foreign exchange saving effect to the country by substituting the current imports. The project will also create forward linkage with the furniture and construction sub sectors and also generates income for the Government in terms of tax revenue and payroll tax.

High