+ Sudan Leather and Leather Products Estate Project Brief

Prepared by: Sudanese Chamber for Leather and Footwear Industries

+ Project Scope

“To make a Leather and Leather Industries Estate that will contain all the leather, leather goods, affiliated services and industries facility achieving a goal of developing the sector and increasing its Technical and human capacity in an environmentally friendly way taking in consideration the available resources and future expansions”

+ Historic back ground about the project:

n  It had always been the dream of the leather sector in Sudan to have this estate materializing on the ground since the early 1990’s after the band of the export of raw.

n  This dream became the vision of the leather and footwear chamber since 2006 as the main driver of the sector development plan.

n  A steering committee including all the stake holders was formed in 2008 and had been working on a study for the project for two years which was materialized by the report between your hands.

n  After the separation of the South and the exist of the petroleum as the main source of foreign currency, the government started to look for alternative sectors with high competitive advantages on top of which leather is the leader in industrial exports due to the abundance of the raw material locally.

+ Location & Layout

+ Location & Layout

+ Location & Layout

+ Location & Layout

n  During the different stages of the study, different locations were nominated for the state to be

n  Different obstacles were found in the ownerships and the distance from residential areas

n  As we know that the expansion of the big cities and specially capitals is very fast and hence we are always expecting industrial areas to become in the middle of the commercial or residential districts which can cause conflicts and inconvenience.

n  The current location, been appointed in 2009 was chosen very carefully and after topographic and geologic studies for both leveling and availability of underground water.

+ Capacity Planning

Tanneries  Plan  

    Annual  Capacity   Daily  Capacity    Land  requirements     Capital  requirements   Weight  of  Raw  

    Pcs   Pcs    m2     $   KG  

Skins    26,000,000      86,667      260,000      43,333,333      260,000    

Hides    4,480,000      14,933      448,000      74,666,667      328,533    

         101,600      708,000.00      118,000,000      588,533    

Shoe  &  Leather  Products  Plan       Annual  CapaciKes   Daily  Capacity    Land  requirements     Capital  requirements  

    Pcs   Pcs   m2   $  

Plas?c/Canvas    50,000,000      166,667      250,000      38,333,333    

Leather    28,750,000      95,833      143,750      22,041,667    

Sole  Moulding    24,000,000      80,000      152,000      15,200,000    

Leather  Goods    870,000      2,900      36,250      5,075,000    

     103,620,000      262,500      582,000      80,650,000    

+ Capacity Planning

Waste  water  treatment  plant  Total  daily  produc?on      588,533     Kg  

Water  consump?on    17,656     m3  

Water  generated/hour    2,207     m3  

Other  consump?on  (10%)    221     m3  

Needed  capacity    2,913     m3  

Cost    40,785,360     $  

Infrastructurele  Needs       Needs   Cost       (QTY)   SDG   $  

Electricity   25.5  M.WaT   49736000    18,420,741    

Water   8686500  m3   34947190    12,943,404    

Roads   32  KM   25000000    16,960,000    

         109,683,190      48,324,144    

+ Capacity Planning

Total  Land  and  Capital  Needs  

    Produc?vity   Land  needs   Capital  needs   Human  Capital    needs  

    (Units)   m2   $   Persons  

 Tanneries    101,600      708,000      118,000,000      1,524    

 Leather  Products    262,500      582,000      80,650,000      52,500    

 Plant  (including  Forest)    2,913      1,412,480      40,785,360      50    

 Infrastructure        270,248      48,324,144        

 Services        810,744      23,943,536     10815  

         3,783,472      311,703,040      64,889    

+ Return On Investment

Expected  returns  of  Revenue  from  the  Project  

    Units  produced   ASP  ($)  

Value    (in  $)  

 Skins    2,166,667     50    108,333,333    

 Hides    98,560,000     0.7    68,992,000    

 Plas?c  /  Canvas    50,000,000     5    250,000,000    

 Leather    28,750,000     10    287,500,000    

 Sole  Molding    24,000,000     1    24,000,000    

 Leather  Goods    870,000     20    17,400,000    

             756,225,333    

+ Legal Entity

n  Taking into consideration all the available options of management, and studying the experiences of similar projects, we recommend a mixed management system including the government, the Industry Union and the stake holders for ensuring the success of the project

n  For the Estate authorities, we are recommending the formulation of a board including the government represented in the Ministry of Industry, Khartoum Estate and the Chamber of Leather & Footwear Industries and the Investment authorities, this will be the organizing body which will grant the licenses

n  For the effluent treatment plant, we suggest a public share company with a clear mandate of servicing the sector, also we recommend an expansion of the service of the plant to include the nearby planned Sabaloga Industrial Area as this will make the project more cost effective.

+ Support Needed

n  A technical support in the form of the execution of a detailed feasibility study (recommended to have local counterparts included)

n  A promotional support in helping to find donors to finance the environmentally friendly clean technology water treatment plant of the estate.

n  Mobilization of the industrial modernization project initiated by Mrs. Calabro and the South-To-South initiation by Dr. Lal and Dr. Babo.

+

“Acknowledgements are extended to the all members of the committee, and everyone who participated in the preparation of this paper.”

Thank you!