Profile on Production of Acetone

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206. PROFILE ON PRODUCTION OF ACETONE Table OF CONTENTS | | |PAGE | | | | | |I. |SUMMARY |206-3 | | | | | |ii. |PRODUCT DESCRIPTION & APPLICATION…show more content…
The total investment requirement is estimated at Birr 6.17 million, out of which Birr 2.84 million is required for plant and machinery. The project is financially viable with an internal rate of return (IRR) of 14 % and a net present value (NPV) of Birr 1.71 million, discounted at 8.5%. II. PRODUCT DESCRIPTION AND APPLICATION Acetone is a colourless volatile and inflammable liquid with a mildly pungent and aromatic odor. It is miscible in all proportions with water and organic solvents such as diethyl ether, methanol, ethyl alcohol and esters. This product is used for the following purposes:- - As a solvent for cellulose acetate, nitro-cellulose, celluloid, chlorinated rubber, etc. - As a carrier for acetylene; - as a raw-material for the chemical synthesis of a wide range of products, such as ketone, methyl methacrylate, bisphenol A, methyl isobutyle ketone, etc, in chemicals, explosives and lacquer industries. Acetone is an import substitute product. III. MARKET STUDY AND PLANT CAPACITY A. MARKET STUDY 1. Past Supply and Present Demand The country 's requirement for acetone is totally met through import. Data obtained from the Ethiopian Customs Authority with regard to import of acetone for the period covering 1997 - 2004 is given in Table 3.1. Table 3.1 IMPORT OF ACETONE |Year |Quantity
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