WOOD is a porous and fibrous structural tissue found in the stems and roots of trees and other woody plants. It is an organic material, a natural composite of cellulose fibers that are strong in tension and embedded in a matrix of lignin that resists compression.
Products derived from wood are many such as lumber, plywood, paper, and cellulose. Lignin the natural glue that holds wood together is used in the production of asphalt, paint, chewing gum, detergents and turpentine. This is just a few of products that are derivable from wood.
Nigeria has more than 180,890km of forest reserve which government gives permit for interested investors to work on a stipulated guide line. With this quantum of forest Nigeria exports timber to many advanced country where it is processed and subsequently produced into finished products and sent back to Nigeria. The aim of this write up is to expose the large potential that exist in the category of products that are derived from wood. Going into manufacturing any of these product will make fantastic investment sense since market is readily available because most of products in this category used in Nigeria are imported.
This article will focus on three products derived from wood, these are PAPER, CELLULOSE AND PLYWOOD
PAPER MANUFACTURING:
A pulp-mill is a manufacturing facility that converts wood chips or other plant fibre source into a thick fiberboard which can be shipped to a paper mill for further processing. Pulp can be manufactured using mechanical, semi-chemical or fully chemical methods (kraft and sulfite processes). The finished product may be either bleached or non-bleached, depending on the requirements.
APPLICATIONS
The main applications for pulp are paper and board production. The furnish of pulps used depends on the quality on the finished paper. Important quality parameters are wood furnish, brightness, viscosity, extractives, dirt count and strength.Chemical pulps are used for making nanocellulose. Specialty pulp grades have many other applications. Dissolving pulp is used in making regenerated cellulose that is used textile and cellophane production. It is also used to make cellulose derivatives. Fluff pulp is used in diapers, feminine hygiene products and nonwovens.
PAPER AND CARDBOARD MAKING
The Fourdrinier Machine is the basis for most modern papermaking. It accomplishes all the steps needed to transform wood pulp into a final paper product. Nigeria’s paper need is enormous and large investment well positioned in this sector will reap bountifully.
PLYWOOD MANUFACTURING:
Plywood is made of three or more thin layers of wood bonded together with an adhesive. Each layer of wood, or ply, is usually oriented with its grain running at right angles to the adjacent layer in order to reduce the shrinkage and improve the strength of the finished piece. Most plywood is pressed into large, flat sheets used in building construction. Other plywood pieces may be formed into simple or compound curves for use in furniture, boats, and aircraft. This is another lucrative business for any serious investor to explore. The demand for plywood in Nigeria is very high thus; producing plywood in Nigeria will be a good business to venture into. Return on investment will be enormous based on our research and projections and the investor will be eligible for government numerous support for manufacturing concern
INCENTIVES
- Pioneer Status (tax holiday) granted for 3 years and renewed for the next two years
- 100 percent repatriation of profit net of taxes
- Capital allowance not restricted. Granted in full -100%
- Investment Promotion and Protection Agreement: The IPPA helps to guarantee the safety of investment of the contracting parties in the event of war, revolution, expropriation or nationalization.
- 60% repayment of interest paid by those who borrow from banks under ACGS for the purpose of cassava production and processing.
The major inputs for large scale manufacturing are; LAND, EQUIPMENT, TRAINING and FINANCE
LAND
Procuring Land for such large scale manufacturing has to be done by professionals who have eagle eye and knowledge of what is required for the successful take off such industry with minimal hindrance. BUSINESS ADVISORY NETWORK is a guru in this regard and will help you arrange choice land at the best rate, all you have to do is to talk to us.
EQUIPMENT PROCURING
BAN has a relationship with a network of equipment manufacturers and suppliers. BAN has the expertise to advice on the best way to go about the setting up of the factory and the equipment to buy for effectiveness. It has to be a mix of both cost effectiveness and durability.
TRAINING
BAN will help you to train and retrain your staff on how to run a cost effective manufacturing concern.
FINANCE
Finance is key to any successful manufacturing and the government is willing to support an investor who has shown capacity and to provide enabling environment for the success of such concern. There is 200 billion manufacturing intervention fund put in place by the central bank of Nigeria. BAN will help an investor who has met the criteria set for accessing the fund to access the fund to support his manufacturing.
MARKET
The market for paper, paper related products and plywood in Nigeria is huge and an early investor will also be entitled to the pioneer status incentives. This will help crash his cost and boost sales for such investor.