1. Product Description: it is cap made from metal usually steel and used for closing glass bottles which can contain beer, soft drinks, mineral water, liquid cosmetics, etc.
2. Rationale: The establishment of one type of factory creates a need for the establishment of another factory which produces inputs for the first factory. The establishment of beer, soft drinks, mineral water and other similar factories in a given Region creates the need for establishing a crown cork producing factory. In the Amhara Region, there are two large breweries (beer factories), two mineral water bottling plants, two soft drinks bottling plants and small liquid cosmetics preparation units. All these factories use crown corks for capping their bottled products; and the crown corks are bought and transported from Addis Ababa. The existing bottling plants located in the Region justify the establishment of a crown cork making plant in the Region.
3. Market Potential: In 2004, total production of crown corks in the country was 4,498,000 gross or 647.71 million pieces of crown corks. Of this production, about one-third is used by bottling plants located in the Amhara Region. This translates into 1,498,000 gross of crown corks. This quantity can be sufficient for establishing a crown cork factory in the region.
4. Source of Raw Material: The metal sheet from which the corks are to be made will be imported.
5. Process & Technology: Crown cork is manufactured from tin plate which is normally of 0.28 mm thickness and temper grade. The inside surface of the crown is given a protective coating of lacquer of non-toxic quality. The outside surface of the crown will be given a protective coating and may also be given a decorative coating as required by the Client. Main machines needed are automatic crown cork machine, steel cutting machine, automatic gluing and inserting machine.
6. Estimated Investment: For a plant that will produce 40,000 crown corks a day, the estimated investment is as follows.
n Buildings -300m2 at Birr 1500/m2= Birr 450,000
n Machinery = Birr 200,000
n Working Capital = Birr 125,000
Total Birr= 775,000
7. Benefits: development of ancillary industries, supports the existing beverages factories of the Region, introduces new skills and technology to the Region.
8. Location: Combolcha or Gondar