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Pad Locks Making Plant


1. Product Description:  Pad lock is a particular type of lock which is used to lock doors, boxes, gates, etc.  Pad locks are manufactured in different sizes and shapes.  They can be made either from ferrous metal or non-ferrous metal.  (Ferrous iron are those which contain small percentage of carbon and do not have any copper or other similar element, while non-ferrous alloys are those which do not contain carbon, but have elements of copper, zinc, tin, etc. as alloying elements.)


2. Rationale:  One can imagine the numbers of doors, boxes, gates, etc that need pad locks in the Amhara Region.  The number could be in the millions.  All pad locks used in the region as well as in the country are imported.  Any casual observation of shops, any where in the country will reveal that pad locks displayed for sale are of foreign origin.  The technology of manufacturing pad locks is a simple and common technology; and this technology can easily be mastered by Ethiopian technicians and skilled laborers.  The investment needed for making pad locks is modest which is affordable by many national investors.  Given this, it is logical to propose the establishment of a pad lock manufacturing factory in the Amhara Region.


3. Market Potential:  Millions of padlocks are being used throughout the country; and millions will be needed in the future.  In such a situation, the fact that there will be a market for pad locks is too obvious to discuss.


4. Source of Raw Material:  to be imported


5. Process & Technology:  Depending upon the size of the lock and the material from which it will be made, the production process takes the following main steps.  The body of the pad lock may be either casted or fabricated.  If the body is to be made from steel, it will be fabricated by steel plates, cut into shape in power press.  Usually there will be two plates of the same shape and size-one consisting of the top side and the other the bottom side.  The two parts are joined together and riveted.  Holes are made by piercing tools.  The levers are also manufactured on the power presses.  If the body is to be made from non- ferrous metals, it is normally cast in one piece.  The shakle is made from mild steel or hard steel rods, bent and flattened at ends.  Size of the lock, serial number, makers name, model, etc embossed after manufacturing.  Main machines include hand press, power press, bench drill, lancer bolts, compressor die and tools.


6. Estimated Investment: For a plant which will produce 6000 pad locks of different sizes per month, the investment requirement will be:


§         Building 300m2 at Birr 1500/m2= Birr 450,000

§         Machinery                                     = Birr 440,000

§         Working Capital                            = Birr 141,000

                 = Birr 1,031.000


7. Benefits: Saving in foreign exchange and regional financial resources, self- sufficiency, possibility of export to other parts of the country, new skills and technology in the Region------.


8. Location: Bahir Dar, Combolcha.