Product Description: An air compressor is a machine that compresses air (a mixture of gases) used for different purposes. Air compressors are normally used for spray painting jobs, for running small pneumatic machines, in manufacturing industries where compressed air is needed, in the repair works of motor vehicles and in type repair shops. Air compressors are able to attain a maximum working pressure of 15kg/cm2.
Market Potential: The national demand for various types (capacities) of air compressors is met through imports. A study undertaken on the market of compressors has estimated that between 1984 and 1993, average annual import of compressors was about 600 pieces or 102 tons. The same study has also projected the demand for air compressors up to 2006 which is 1971 pieces or 331tons. This projected demand will reach about 4500 units in 2013. Production of compressors is mostly an assembly operation. As such it is not highly subject to economies of scale. Thus producing the projected demand for air compressors could make a plant financially viable.
Source of Raw materials: the major components required for the manufacture of air compressors are C.I castings, M.S. plate, expanded mesh and M.S sheets, etc. Other components to be procured include pressure gauges, V-belts, electric motors, switches, pressure valves, piston and rings, safety valves, etc. For the first five years, these components will be imported.
Process and Technology: Casting of standard grades will be procured from outside and machining of the components will be done in the factory. Parts to be machined will be cylinder block, cylinder head and tools. M.S sheets will be purchased and rolled in the factory to produce the storage tank body. The two end parts of the storage tank will be made and welded in the factory. The piston, piston ring, etc. will be procured and they will be lapped before they are made ready for final assembly. The air compressor will then be assembled.
The pressure controlling and measuring devices will be fitted and the compressor will be put to test in accordance with standard norms. Main plant and machinery needed include universal milling machine, center lathe machine, shaper, vertical boring machine, sharpening machine, hand press sheet rolling machine, bench drilling machine, double ended bench grinder, welding transformer and portable grinder and drill.
Estimated Investment: For a plant that will produce about 300 units of compressors, the estimated investment will be:-
Building/shade 250m2 at Birr 1500/m2 = Birr 375,000
Machinery ………………………………. = Birr 1,000,000
Working capital ………….……………... = Birr 6,00,000
Total = Birr 1,975,000
Benefits: Saves foreign exchange promotes self-sufficiency, has potential of export to other regions thereby bringing in financial resources to the region.
Location: Combolcha, Debre Birhan.