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Capped Nails Making Plant

 

1.  Product: Capped nails are used mainly in fixing corrugated iron sheet roofs, walls or fenced construction.  The predominant roofing material in urban Ethiopia is galvanized corrugated iron sheet and capped nails are used in fixing the corrugated iron sheets. 

 

2. Rationale: Many modern dwellings require corrugated iron sheet roofs.  The traditional use of grass straw roof are not suitable as they are fire hazardous and not long lasting and many farmers tend to change the roof of their houses even by construction of new ones with corrugated iron sheet roof.  Capped nails are required to fix these corrugated iron sheet roofs. 

 

3. Market: There is huge existing and potential demand for capped nails as there is a big backlog in building construction.  The housing need is increasing and construction of dwelling houses by corrugated iron sheet roofs is undertaken in many places of the region.  Due to rising income of rural population there is high priority by the people to construct new houses by corrugated iron sheet roofs.  This has created demand indirectly to capped nails both in urban and rural area.  There is no factory in the region to satisfy the huge demand of capped nails. 

 

Supply of Nails (tons)

Year

(Eth Cal)

Domestic

Production

Import

Total

Share of Import

1991

2,454

12,897

15,351

84%

1992

2,773

9,111

11,884

77%

1993

3,817

6,637

10,454

63%

1994

5,190

7,266

12,456

58%

1995

5,330

4,932

10,262

48%

1996

8,664

4,121

12,785

32%

1997

15,335

4,493

19,828

23%

1998

22,233

4,381

26,614

16%

1999

24,578

4,381

28,959

15%

2000

29,958

4,209

34,167

12%

                                                      Source: CSA.   (Year 2000 projections)

4. Source of Raw Materials: The main raw materials are wire and hoop (iron) and these will be imported.

 

5. Production Process and Production Technology (a)  Production Process Capped nail making process involves basically the following:  Feeding of wire and washer into the nail making machine, which the machine straightens the wire, insert the washers into the wire and cuts the wire into prescribed lengths and points, inspecting and packing.  

 

b)  Machinery and Equipment  

-         Washer making machine

-         Capped (umbrella) nail making machines

-         Washer polishing machine

-         Surface grinder

-         Wire coil stand

-         Tools, accessories and worktable except worktables the machinery and equipment are assumed imported.  

 

6. Estimated Investment: The total investment cost including building, machinery and equipment and working capital is estimated to be Birr 2.5 million (two and half million birr). 

 

7.  Location:  Bahir Dar, Combolcha, Gondar.

 

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