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1. Product Description: Hammer is forged steel hand tool used for hammering.  It has a long wooden handle which provides leverage when the hammer is used.  The main purpose of a hammer is to give impacts at a particular place for pushing, straightening, breaking, etc.  Hammers come in different sizes and they are driven by either mechanical or human power.  Those operated by power or steam are called power/steam hammers.


2. Rationale:  Hammers especially the hand hammers are easy to make; but they are not being produced in the country in sufficient quantity.  Some quantities of hammers are being produced by the Akake Spare Parts but these are small ones used only for pushing nails.  Due to limitation in domestic production both in quantity and variety, hammers are imported from abroad.  Hammers are widely used in the Amhara Region.  They are used both by urban and rural residents.  Though total quantity of hammers being used in Region is not known in terms of numbers, it is believed to be in thousands.  All these are imported or bought forms Addis Ababa considering the importance of this hand tool, there is a need to establish a plant that could produce hammers hand some related hand tools.


3.  Market Potential:  If a product is not produced in a given region but it is used widely in that region what this indicates is that there is demand for that product.  This means that there is a need to establish a plant to produce that particular product.  The issue of how much demand, how many to produce will be determined at the stages of feasibility studies.  What is need in the identification of project ideas is establishing the general fact about the need of supplying a particular product from local production.  For a plant that will produce hammers In the Amhara Region, there will be enough market to absorb its products within the Region.


4.  Source of Raw Material:-  Like all metal inputs, the steel material that will be used to make hammers will also be imported.


5. Production Process & Technology:  The process of producing hammers include cutting of blanks from low carbon steel bars, forging, grinding trimming and flattening, hardening, handle making and fixing.  Main plant and machinery include power pres (120 ton capacity), drop forge hammer, hot air circulation tempering furnace, power hacksaw, piller drill, center lathe, oil fired furnace and buffing machine.


6.  Estimated Investment:  For a plant which will produce about 90,000 pieces of hammers of different weights, estimated investment will be:


§         Building 300m2 at Br 1500/m2 = Br. 450,000

§         Plant & machinery                    = Br. 250,000

§         Working capital                                  90,000



7.  Benefits: saving in foreign exchange and regional financial resources, self-sufficiency, introduction of new skilled and technology


8.  Location:  Combolcha