Assembly of Small Diesel Engines
Rationale:
All types of diesel generators are imported into the country, and this import will increase as the economy expands requiring more power. Diesel engines come in different sizes, and each engine is composed of many parts and components. Due to economies of scale, many diesel engine parts are manufactured by specialized manufacturing units and they are supplied to manufacturing-cum-assembling units. Considering the importance of diesel engines, there is a strong need at the national and regional level to start; at least, assembling the engines from imported parts and components. Through assembling, we can learn manufacturing and fabrication of parts. This is how the development of basic industries in any country takes place --- assemble-fabricate-manufacture.
Estimated Investment: For a plant that will assemble between 250-300 units of diesel engines, estimated investment will be as follows.
Building 200 m2 at Birr 2000/m2= Birr 400,000
Plant and machinery Birr 260,000
Working capital Birr 160,000
Birr 820,000
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Fabrication and Assembly of Oil Crushers
Rationale:
Next to Ormiya, the Amhara Region is the largest oil seeds producer in the country. Oil seeds are partly exported and partly used for domestic edible oil production. Edible oil and oil seeds are some of the exports of the Amhara Region to other parts of the country and to foreign markets. Most edible oil exports are produced by small scale operators using small oil crushers. Practically all small and large urban centers in the Amhara Region have a number of oil crushing units. But the oil crushers are either imported or bought in modified version from Addis Baba. Most parts and components of an oil crusher can be manufactured in the Region and there is no reason why whole units of oil crushers have to be imported from outside the Region.
Estimated Investment:
For a plant that will assemble about 40 oil crushers per year, estimated investment will be,
Building 300m2 at or 1500/m2 = Br. 450,000
Plant & machinery = Br. 200,000
Working capital = Br. 100,000
= Br. 750,000
Erasers (Rubber) Making Plant
Rationale:
Only in elementary and secondary schools alone, there were (2004)10.5million students in our country. All these students and other members be of the society use erasers. Annual consumption of this product could in the tens of millions of pieces; and all these are imported by paying very scarce foreign exchange resources. It is strange that this vital educational material has not been promoted in the past for domestic production either by the state or by the private sector. It is time this product be produced in the country at least to meet part of the national demand of the country. The Amhara Region can promote this project idea to be the first Region to produce this important product.
Estimated Investment:
A small plant which will produce 100,000 rubber erasers per year will require:
-- Building 200 m2 at Birr 1500/m2= Birr 300,000
-- Plant and machinery Birr 100,000
-- Working capital Birr 30,000
Total 430,000Birr
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