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Aluminum Household Utensil

 

1.  Product Description: Domestic utensils can be made from different metals such as copper, brass, silver, bronze, iron, steel, aluminum, etc.  Aluminum utensils are popular because they are light, they don’t rust and are relatively less expensive than utensils made from steel and sliver.

 

2. Rationale: Though not in large quantities compared to the size of the population, the Amhara Region has become a market for aluminum household utensils.  These utensils are either imported from abroad or are made in Addis Ababa.  Due to the increase of the urban population and the market penetration of rural areas the use of aluminum household utensils will increase in the future.  This will justify the establishment of a plant that will produce basic household utensils made from aluminum.

 

3.  Market Potential: The market for aluminum household utensils is dominated by products imported from Egypt, Turkey and other countries.  These products are fist imported to Addis Ababa and then distributed to other towns of the country.  The Amhara Region is flooded with products made in Egypt.  As of now, the Region’s market for aluminum based household utensils may not be big; but is will grow.  Since production of utensils is not subject to economies of scale, it is possible to establish small units for producing these utensils for the Region’s market.

 

4.  Source of Raw Material: Import

 

5.  Production Process & Technology: Basically there are three stages in the production process of aluminum utensils.  These are pressing, beading and coating.  Aluminum scrap or ingot first melted in iron crucible and molten metal cast into the slab type open mould by mechanical process into rectangular billets.  The billets, after annealing and cleaning are pressed through re-rolling machine three to five times to make the sheet of reaustic thickness.  The stamped circle is now ready for deep drawing to get the shape of the desired utensils.  Shaping refers to pressing with dies on press, beading on the lathe and surface treatment.  Main plant and machinery include coal fired furnace, reversible moulds could rolling mill, pre-heating, circle cutting and stamping machine, de-drawing double action power press, spinning lather and pre- heating furnace, counter spinner and hand press and cleaning tanks.

 

6.  Estimated Investment: For a plant that could produce between 15-30 tons of aluminum utensils per month, the estimated investment is as follows.

 

n      Building 300 m2 at Birr 2000/m2= Birr 600,000

n      Plant and machinery                            Birr 200,000

n      Working capital                                   Birr 270,000

Total                           Birr  1,070,000

                          

7. Benefits: Saving in foreign exchange, saving in regional financial resources, introduction of new skills and technology to the Region, ------.

8.  Location: Bahir Dar, Combolcha.

 

 


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