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Safety Pins

 

1. Product Description:  Safety pins are used to pin clothes together, and in rural Ethiopia to take out thorns which accidentally penetrate body parts such as feet) and chiggers.  Safety pins are popular in rural areas.  All most all individuals except small children have at least one safety pin each.

 

 2. Rationale: Safety pins are simple wires cut into desired lengths sharpened in one end, bent in the middle and cupped in another end which is used as a hook for the sharp end.  Though simple they are to make, safety pins are imported.  Is it not time to produce, at least, safety pins in the country?  With a population of 19 million people, most of them living in rural areas, the Amhara Region should promote the establishment of a safety pins producing factory.

 

3. Market Potential: Is there a need to discuss the market potential of a product where nothing is produced locally and all is imported from abroad.  The market is there; the issue is how much/money to produce?

 

4.  Supply of Raw Material: The ”raw material” for making safety pins is mild steel wire and thin sheet metal.  The inputs will be imported.

 

5. Process & Technology:  Mild steel wire is cut into required length.  A special machine converts the wire in to a safety pin.  The head of the safety pin is manufactured in another machine and pressed with the body on another machine.  Main machines include automatic pin manufacturing machine, automatic head assembling machine, bench grinder and drill.

 

6.  Estimated Investment: For a plant that could produce from 25-35,000 dozens of safety pins, the required investment will be:

 

    • Building 100m2 at Birr 1500/m2 = Birr  150,000
    • Machinery                                      = Birr   158,400
    • Working capital                              = Birr    88,000

       = Birr 396,400

 

7. Benefits:  Saves foreign exchange and regional financial resources, introduces new technology and skills, possibility of export to other parts of the country.

 

8.  Location: Bahir Dar.

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