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1. Product Description:-  Spanners are metal tools with a specially shaped ends for holding and turning nuts and bolts.  They are used for gripping a bolt or a nut head, and providing the leverage while opening it.  There are two types of spanners (a) ring spanners (also called socket type) and (b) plain spanners (called single or double end).  This project idea considers double-end spanners which are widely used and has larger demand.


2. Rationale: Spanners are very essential hand tools in all mechanical works such as assembling, repair and maintenance of all types of machinery and equipment.  Though some quantity of spanners is produced by the Akakie Spare parts Factory, most of the spanner needs of the country is met by imports.  Spanners are made by cutting steel bars into required lengths and making both ends according the desired shape and dimensions.  If the steel bars that could be used to make spanners are made available, it is technically possible to produce different sizes of spanners in the Amhara Region for regional as well as national consumption.


3. Market Potentials:  During the last four years, import of spanners was 20,000 per year on the average; and domestic production is estimated to be about 2000 pieces.  This shows that there is much gap between domestic production and imports which gives opportunities for increasing domestic production to reduce imports as much as it is technically and financially feasible.  The import substitution gap is wide enough to justify the establishment of a factory that will produce the most common spanners.


4.  Source of Raw Materials: Spanners are made from steel bars and these bars will be imported.


5. Process and Technology: In manufacturing spanners, the following operations are performed:- cutting steel bars in to specific lengths, stamping and forging the bars in to presses, milling the spanner ends and printing, heat treatment, butting and polishing the spanners, electroplating, testing and packing.  Main plant and machinery include power press, drop forging hammer, broaching machine, belt grinder, shot blasting machine, tempering machine and hardening furnace.


6.  Estimated Investment: For a factory whose annual production capacity is about 50,000 pieces of spanners, estimated cost of investment will be:


n      Buildings- 300m2 at Birr 1500/m2= Birr 450,000

n      Machinery & Equipment                     = Birr 264,000

n      Working capital                                  = Birr 176,000

=Birr 890,000


7.  Benefits: Contributes to the development of machine tools industry, saves foreign exchange and regional financial resources, possibility to export to other regions, introduction of new skills and technology.


8.  Location: Combolcha.