1. Product: Steel pipes are essential items in building construction and manufacturing industries for the transport of water and steam. All urban houses are equipped with steel pipes.
2. Rationale: Water from municipality sources is transported mainly by using steel pipes. They are safer and durable for a long period of time can be buried in the ground. Modern construction of building uses steel pipes inside the building. Steel pipe has also other service like in furniture making. However, there is no steel pipe making plant in the region and it is imported mainly from Addis Ababa. It is highly essential to have a steel pipes making plant in the region as building construction is rapidly growing.
3. Market Potential: The main demand for steel pipe comes from the growing modern building construction for the transport of water. The distribution of water in town also highly depends on the serve of steel pipes. The growth in population and growth in distribution of clean water require huge supply of steel pipes. The existing and potential demand is sufficient for the viable operation of a new steel pipe making plant.
4. Source of Raw Material: The main raw materials are steel sheets, enameling paint, oxygen and acetylene gases. The steel sheets and enameling point will be imported.
5. Production Process and Technology (a) Process the main process of steel pipe is sheet cutting, drawing, welding, straightening, threading, parting and inspections.
b) Machinery and Equipment
- Steel sheet cutting machine
- Welding machine
- Drawing machine
- Oxygen and acetylene gas container
- Enameling paint machine
6. Estimated Investment: The total estimated investment cost that includes building machinery and equipment and working capital is estimated to be Birr 650,000.
7. Location: Combolcha.