1. Product Description: A transformer is a device which is used to transfer electrical power between two electric circuits which operate with alternate currents of different voltages. Transformers are extensively used in almost all electronic and electrical devices. Transformers are used to step down and step up the voltage of alternating current. In radios to step down the voltage from 220 volts to 110 volts. In transistors to step down the voltage from 220 to 1.5- 12 volts. Transformers are also used in nigh lamps, voltage stabilizers, eliminators, televisions and so many other devices. Transformers are of various types and make.
2. Rationale: Making transformers at least of the smaller types does not require advanced technology and highly trained and skilled technicians. However, there is no any single transformer making/ assembly entity in the whole country. All types of transformers that the country needs are imported. To be fair, there are some workshops in Addis Ababa which repair and maintain some types of transformers mostly the smaller ones. Again the Amhara Region will have an advantage if it starts assembling transformers (even small ones) ahead of other regions. This is why this project idea should be promoted and supported by the Region.
3. Market Potential: Assembly of small transformers is partly an import substitution activity and this is usually done stage by stage. The initial stage would be to import the main components of the transformer and assemble them here for the Regional and National market. The existing domestic market for small transformers can absorb the production of a new plant that will assemble small transformers.
4. Source of Raw Material: Basically, a transformer is made of a core, a primary and secondary coil. The core or the magnetic circuit is made of steel. The steel used for the core is generally a silicon iron alloy which has been cold rolled. The coils are made from copper or aluminum in the form of strips or foils. Copper wire is insulated with a high temperature resistant insulating material. These components to be assembled will be imported.
5. Production Process & Technology: Main process is as follows: winding of the primary and secondary coils, insulating the coils with insulation paper, packing the stampings with the former, providing connection joints at the transformer for the primary and secondary coils. Main plant and machinery include winding machines, multimeter, stabilized power supply units, oscilloscope, testing jigs.
6. Estimated Investment: Building 300 m2 at Birr 1000/m2 = Birr 300,000; plant and machinery birr 280,000= Birr 580,000.
7. Benefits:- saves foreign exchange to the country, saves financial resources to the Region, beginning of and electrical industry, introduction of new skills and technology.
8. Location: Combolcha, Debre Berhan Gondar.