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1.  Product Description:  A chisel is a hand tool with a sharp flat edge at the end and used for shaping wood, stone or metal.  Chisels are made of many kinds according to their use.  One kind is used for metal and metal alloys while another kind is used by carpenters.


2. Rational: Two types of chisels are used in the Amhara Region-the traditional home made chisel and the imported one.  The traditional chisel is made by blacksmiths using traditional techniques.  These types of chisels are used only by carpenters.  The other types of chisels are the imported ones and they come in different sizes and for different type of purposes.  The imported chisels dominate the market especially the urban market.  As long as it can be produced economically, the Region should strive to be self-sufficient in any product including chisels.


3.  Market Potential: Chisels produced by blacksmiths are mainly used in rural villages in the preparation of traditional wooden farm implements.  The use of chisel is widespread in the urban areas and its application is mainly in the wood and metal working industries.  An observation of building material shops indicates the variety of chisels being imported and distributed in the country.  As construction and other economic sectors expand, the demand for chisels will also expand.  Even with the current consumption level, a plant which will produce chisels will operate without facing any demand constraints.


4.  Source of Raw Material: Imported


5.  Process & Technology: Chisels are manufactured from hot rolled or forged annealed bars and bar plates, strips and sheets.  The strips or bars are cut into pieces of proper size.  The pieces are heated on oil furnance for forging by a forging hammer.  The excess material on the side is removed again by hammering or by using a grinding stone. Main machinery required includes power hacksaw, power hammer, and oil fired furnace, polishing machine, moulds or dies.

6.  Estimated Investment: For plant which will produce about 25,000   chisels per month, investment requirement will be:

·   Building/shde 200m2 at 1500/m2 = Br.             300,000

·   Machines                                   = Br.               150,000

·   Working Capital                          = Br.                60,000



7.  Benefits: Savings in foreign exchange and regional financial resources, introduces new skills and technology, enhances self-sufficiency, possibility of export.


8.  Location: Bahir Dar, Combolcha