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Welding Electrode Making Plant


1. Product Description: In metal fabrication and mechanical engineering industries, welding is a very indispensable operation.  In welding process the localized coalescence of material is achieved through the application of heat and pressure.  Mainly three types of welding:- arc welding, resistance welding and gas welding are common.  Are welding achieves coalescence of metals through intense heat of electric arc which establishes between the base metal and an electrode.  The electrode is consumed by melting and becomes part of the weld, acting as a filler metal.  This is a project idea to produce the welding electrode which is essential for arc welding.

 

2. Rationale: Welding takes place in garages, factories, construction sites, metal fabrication workshops, in technical training centers, etc.  And for all these welding activates, thousands of tons of electrode are imported to the country every year.  Though welding operations is known to increase as the economy grows, no attempt has been made, so far, to produce sufficient quantities of electrodes in the country.  This is an activity which has been neglected and which an investor in the Amhara Region can take the initiative to produce electrode not only for the Region’s market but for the market of the country as a whole.  Even with current level of economic development, a country with 75 million people can have a viable welding electrode making plant.  Can the Amhara Region be the first to establish this plant?

 

3. Market Potential: The present level of consumption of electrode in the country is more than the capacity of a medium size electrode making plant.

Disaggregated Data on Electrodes Import

Year

 

Type A

Type B

Type C

1997

CIF V. Birr

7,720,736

550

264,736

NW (kg)

774,871

1

9,115

1998

CIF V. Birr

8,134,747

 

812,486

NW (kg)

1,488,233

 

109,844

1999

CIF V. Birr

8,450,103

86,343

160,722

NW (kg)

1,037,181

371

983

2000

CIF V. Birr

11,349,043

66,667

26,220

NW (kg)

2,054,889

589

77

2001

CIF V. Birr

12,211,992

15,421

210,667

NW (kg)

1,746,794

496

27,031

2002

CIF V. Birr

12,501,022

34,543

312,681

NW (kg)

2,125,501

2,125,501

25,446

2003

CIF V. Birr

15,389,765

191,279

939,012

NW (kg)

2,127,617

5,301

75,445

2004

CIF V. Birr

19,205,831

1,771

181,497

NW (kg)

2,849,772

40

23,505

2005

CIF V. Birr

12,288,827

618,453

709,990

NW (kg)

1,710,613

44,885

44,110

2006

CIF V. Birr

27,682,162

716,832

362,068

NW (kg)

3,756,115

42,780

42,780

2007

CIF V. Birr

28,456,524

1,235,263

1,903,222

NW (kg)

3,424,433

84,929

109,535

Sum

CIF V. Birr

163,390,752

2,967,121

5,883,302

% Total

NW (kg)

94.81%

1.72%

3.41%

2008

Calculated

CIF V. Birr

28,619,846

1,350,000

2,100,000

NW (kg)

3,686,380

103,377

110,000

         Source: Ethiopian Customs Authority

Type A: Coated electrodes of base metal, for electric arc-welding

Type B:                 Carbon electrodes for furnaces

Type C:                 Carbon electrodes (excl. For furnaces)

 

4. Source of Raw Material: The main raw materials for welding electrodes are- wire, potassium/ sodium silicates, rutile, beneficiated illuminate quartz, china clay, ferromanganese, cellulose, and titanium dioxide, etc.  Most of these materials will be imported; some such as sodium or potassium silicates, china clay, quartz—can be found in the country.

 

5. Production Process & Technology:  The main production processes are:- mixing all the raw materials to be used for coating, pressing into briquettes feeding the meter wire and the flux briquettes into an extrusion press.  The core wire unites with the coating compound by a nozzle system within the press; and the coated electrode is electrically dried before packing.  Main machineries include dry and wet mixers, briquetting press, extrusion press, pumping unit, automatic wire feeder, conveyers and brushing equipment, drying oven---



6. Estimated Investment:

Building area 600m2 X Birr 600/m2 = Birr         360,000

Plant Machinery                           = Birr             107,820

                                                                            467,820

7. Benefits to the Region’s Economy: Flow of financial resources to the Region, saving of foreign to the country, transfer of technology, development of new skills.

 

8. Location: Combolcha

 

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