This document provides a project brief for a proposed Sudan Leather and Leather Products Estate. The project aims to develop Sudan's leather sector by establishing an estate containing tanneries, leather product facilities, and support services. It will have an annual production capacity of over 100 million pieces across tanneries and leather goods. The proposed estate location was chosen after topographic and geologic studies. The project will require over 3.7 million square meters of land, capital investments of over $311 million, and support over 64,000 jobs. It is expected to generate over $756 million in annual revenue from leather and leather product sales. A mixed public-private management structure is recommended to oversee the estate and effluent treatment
2. +
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”
3. +
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.
7. +
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.
8. +
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
9. +
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
10. +
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
11. +
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
12. +
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.
13. +
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.
14. +
“Acknowledgements are extended to the all members of the
committee, and everyone who participated in the preparation of
this paper.”
Thank you!