BIO-BASED ECONOMY
Medium-density fiberboard (MDF) from agricultural waste for wood industry
Market
| Final Products | Medium Density Fiberboard (MDF) |
| Required Inputs | Mixed agricultural waste |
| Competing Products | Imported MDF and particles boards |
Process
| Complexity – Type of Process | Manual, mechanical and thermal process |
| Technology | Crushing, grinding, gluing and pressing |
| Equipment and Material | Manual tools, agricultural waste crusher, press machine |
| Human Resources | Manual labor, technical operation, drivers |
Advantages and Risks
| Competitive Advantage | Low priced product with acceptable quality in comparison with imported product |
| Barriers to Entry | Managing network of agricultural waste suppliers |
| Key Stakeholders | Local farmers to provide agricultural waste as raw material, local agricultural waste collectors, furniture factories and workshops |
| Special Regulations | NA |
| Risks and Mitigation Measures | Seasonality of agricultural waste affects the stability of supply levels and makes cash flow management very challenging. Logistics of getting the agricultural waste. Therefore, optimizing the location of the processing facility is key to decreasing transportation costs and guaranteeing the availability of various agricultural waste yearlong. |
Economic Features
| Revenue Stream | Sales of MDF boards |
| CAPEX | 115M Note: This CAPEX represents the indicative investment size, however, this investment opportunity can grow in implementation to a larger-sized investment. |
| Investment Size | Large (between 50-500M EGP) |
Considerations
| Key Challenge | Meets the quality level requirements, secures constant supply in quantity and quality regardless of seasonality |
| Advantages | High demand for green wood in the international market, in addition to a competitive edge in quality and price locally |
Geography
| Location of Supply | Supply is mostly in Upper Egypt, Delta, and Ismailia |
| Preferred operation regions |
Upper Egypt, Delta, and Ismailia |
Studies
| Serial | File name | Download |
| 1 | 19 Business Opportunities Economic Business Models in Egypt's Recycling Sector for Startups and SMEs_booklet |
