DEVELOPMENT BANK OF ETHIOPIA

RESEARCH AND PROJECT DATA MANAGEMENT

DIRECTORATE
RAW DATA AND INFORMATION
ON
ALUMINUM PROFILE & ITS PRODUCTS
MANUFACTURING (SECOND UPDATE)

Prepared By:

Mekashaw Mezgbu Sr. RPDM Officer

Simachew Atinaf Junior RPDM Officer

Revised By:

Mesfin W/Mariam Team Manager

Million Jarso Technical Team Manager

 Approved By: RPDM Approval Team Members

August, 2018

Table Of Content
1. INTRODUCTION............................................................................................................................1

1.1. Background................................................................................................................................1

1.2. Objective of the Document........................................................................................................1

1.3. Methodology..............................................................................................................................1

1.4. Scope and Limitation.................................................................................................................1

2. DESCRIPTION OF THE COMMODITY.......................................................................................2

2.1. Definition of the Commodity.....................................................................................................2

2.2. Classification of the Commodity...............................................................................................2

2.2.1. Aluminum Profile...............................................................................................................2

2.2.2. Aluminum profile products.................................................................................................2

2.3. Uses of Aluminum profile and its products...............................................................................2

3. RAW MATERIALS AND INPUTS DATA....................................................................................3

3.1. Supply of Major Raw Materials....................................................................................................3

3.1.1 Aluminum billet.........................................................................................................................3

3.1.2 Aluminum Profile......................................................................................................................4

3.1.3 Aluminum Scrap (Secondary Aluminum).................................................................................5

3.2. Supply of other Supplementary Inputs..........................................................................................6

3.3. Market Arrangements of the Raw materials and inputs................................................................7

4. TECHNICAL DATA........................................................................................................................8

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4.1. Technical Background of the commodity......................................................................................8

4.2. Production Process Description.....................................................................................................8

4.2.1. Aluminum profile manufacturing steps.....................................................................................9

4.2.2. Curtain wall and ceiling production.........................................................................................15

4.2.3. Aluminum profile recycling.....................................................................................................16

4.3. Machinery and Equipment...........................................................................................................17

4.4. Ceiling, Windows and Doors Assembly......................................................................................19

4.5. Quality control (inspection) of aluminum billet and profile........................................................24

4.6. Utility Requirement.....................................................................................................................25

4.7. Civil Work Requirements for Aluminum Profile and Its Products.............................................26

5. MARKET DATA...........................................................................................................................28

5.1. Market Segmentation...................................................................................................................28

5.2. Demand determinants..................................................................................................................28

5.3. Domestic demand........................................................................................................................28

5.4. Supply-side data...........................................................................................................................29

5.4.1. Import...............................................................................................................................29

5.4.2. Domestic Production........................................................................................................30

5.5. Marketing channel and arrangement........................................................................................30

5.6. Marketing Strategy...................................................................................................................31

6. PROBLEMS, RISKS, AND SUCCESS FACTORS......................................................................32

6.1. Key Problems...........................................................................................................................32

6.2. Key Success Factors.................................................................................................................32

7. PARAMETERS, TECHNICAL COEFFICIENTS AND ASSUMPTIONS..................................33

7.1. Assumptions.............................................................................................................................33

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 7.2. Revenue....................................................................................................................................33

7.3. Investment Requirement..........................................................................................................33

7.4. Operational Expenses...............................................................................................................34

REFERENCES.......................................................................................................................................39

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ACRONYM
ITC International Trade Center
US United States
MIGA Multilateral Investment Guarantee Agency
PPE Personal Protective Equipment
PVC Poly Vinyl Chloride
ID Internal Diameter
OD Outside Diameter
L Length
CNC Computer Numerical Control
MPa Mega Pascal
RPDMD Research and Project Data Management Directorate
GDP Gross Domestic Product
1. INTRODUCTION
1.1. Background

As aluminum profile and its products manufacturing are considered as prima priority areas in the
manufacturing sub-sector, tailored packages are there as investment incentives by the Ethiopian
government (GoE). Extension of long term loan through DBE is considered as one of the incentive that
the government has put an effort to develop the sub sector. In line with the vested mandate as a bank
and RPDMD (Research and Project Data Management Directorate) as working unit, this document is
prepared to facilitate project financing. This is a document which comprises consolidated basic raw
data and information on aluminum profile and its products manufacturing which could assist during the
course of financing of same.

1.2. Objective of the Document

The main objective of this document is to meet the expectation of the concerned units and decision
makers through provision of comprehensive and relevant raw data and information; thereby enable
them to make an appropriate decision.

1.3. Methodology

The document was prepared through collection of both primary and secondary data from different
organizations, concerned stake holders, browsing internet, reviewing an appropriate publications and
previously made rain fed sesame seed commodity study. The main instruments for primary data
collection were structured questionnaire and interview

1.4. Scope and Limitation

The scope of the document mainly focuses on aluminum profile and its products manufacturing in
Ethiopia without altering the previously demarcated scope of 1st updated commodity study, 2015.

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 2. DESCRIPTION OF THE COMMODITY
2.1. Definition of the Commodity

Aluminum profiles are aluminum metal with different cross-sectional shape that is produced from
aluminum billet through the hot melt and extrusion. They are extruded stock shapes of aluminum that
are used for the fabrication of door and window frames, curtain walls and ceilings. Aluminum profile
products are products that are made from aluminum profile and used for utilization of construction,
furniture and others.

2.2. Classification of the Commodity

The commodity study encompasses aluminum profile and its products (such as aluminum doors &
windows, aluminum curtain walls and ceilings).

2.2.1. Aluminum Profile

2.2.1.1. Types of Aluminum Profiles

Based on their shapes, there are different types of aluminum profiles. These are:-L-shape, U-shape, T-
shape, Z-shape, H-shape, square shape, channels, round shape, etc

2.2.2. Aluminum profile products

2.2.2.1. Types of Aluminum profile products

There are a number of aluminum profile products but study mainly emphasis on the following: -
Aluminum doors & windows
Aluminum curtain walls
Aluminum Ceilings

2.3. Uses of Aluminum profile and its products

Aluminum profile has several uses the mainly aluminum profile is use as construction materials and
furniture like window, door , curtain wall, ceilings etc and Aluminum profiles for common use as
frames, window frames, industrial products frames, profiles for shutters, for blinds, etc. Aluminum
profile products are also used for decoration or beauty of the houses, windows, doors and for different
purposes.

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 3. RAW MATERIALS AND INPUTS DATA

The raw materials required in the manufacturing of Aluminum profiles and its products are listed
below.
 Aluminum Billet (mainly for making aluminum profile)
 Aluminum profiles (for manufacturing of aluminum profile products such as aluminum doors
and windows, curtain walls and ceiling)
 Aluminum Scrap (secondary Aluminum)
 Other supplementary inputs such as:
 Accessories/hardware’s such as gasket, window knob, hinges, and screw/bolt
 Electrodes
 Protection film
 Epoxy adhesive
 Coolant Oil

3.1. Supply of Major Raw Materials

3.1.1 Aluminum billet

The major raw material used in the production of Aluminum profile and its products is aluminum billet.
Aluminum billet, also called aluminum “bar stock,” is one of the raw products from an aluminum mill
cast in to square, bar or rod of aluminum or aluminum alloy produced for shaping into different
profiles.

Aluminum billet can be manufactured using either of two forms of production: primary or secondary.
The production of primary aluminum billet requires the use of raw materials (bauxite and alumina),
while production of secondary aluminum relies on the collection of old (postconsumer) and new
aluminum scrap, which is re-melted into billet aluminum by extrusion process.

The raw material is applicable in other manufacturing industries like in engineering products,
transportation, household materials and packaging industries, consumer durables, automotives, forging,
as well as many other applications.

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The firms that engaged in the manufacturing of Aluminum profile in Ethiopia are manufactured from
aluminum billet by importing the raw inputs from foreign countries mainly from United Arab Emirates,
Malaysia, India, China, Italy and Egypt. So factories who are in need of such raw materials can import
whatever amount they need as per its demand available in different parts of the world.

Table 3.1: Import of unwrought aluminum in Tons (both aluminum billet and ingot) (HS Code: 7601)
Year and imported quantity
Exporters 2013 2014 2015 2016 2017
World 43 11 73 491 825
India 0 49 25 401
Oman 305
Singapore 100
China 1 8 0 7 20
Indonesia 101
Italy 2
Malaysia 99
Taipei, Chinese 41 20 60
Russian Federation 25
Saudi Arabia 175
United Arab Emirates 0 1
Turkey 2 0
Egypt 2
United Kingdom 1
USA 0 0 0
Source: ITC Trade map

3.1.2 Aluminum Profile

This is the major raw material used for making aluminum products such as windows, doors as well as
their frames and partitions with other accessories. The coherent length is cut off, stretched and
toughened and then goes for further treatment depending on the purpose and customer needs. By means
of extrusion the desired profile shape can generally be attained, thus preserving rigidity and strength,
and allowing a profile shape suited to the window's and door’s functions.

The application of this raw materials in other than doors and Windows are, used in kitchen cabinet
section, Architectural application, Furniture application, curtain walls application, railing, fencing
ceiling, aluminum walls, in transportation and other application basis.

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Table 3.2: Imported amount of aluminum profiles, rods and bars in Ton (HS Code: 7604)
Year and imported quantity in Ton
Exporters 2013 2014 2015 2016 2017
World 43 11 73 491 825
India 0 49 25 401
Oman 305
Singapore 100
China 1 8 0 7 20
Indonesia 101
Italy 2
Malaysia 99
Taipei, Chinese 41 20 60
Russian Federation 25
Saudi Arabia 175
United Arab Emirates 0 1
Turkey 2 0
Egypt 2
United Kingdom 1
United States of America 0 0 0
Source: www.ITC Trade map

3.1.3 Aluminum Scrap (Secondary Aluminum)

Secondary aluminum is aluminum recovered from scrap that is collected and re-melted to form
aluminum billet. The availability sourcing patterns for scrap used in the production of secondary
aluminum in the country are more fragmented. The main aluminum scrap sources are from vehicles,
metal products for construction, cables and wires, electrical and electronic equipment and packaging
materials.

According to data obtained from survey, This Scrap is usually collected by scrap dealers and sold to
companies that re-melt the aluminum into specification billet themselves. The recovered aluminum
metal is then shipped to processing facilities and further fabricated into sheet, plate, wire, etc.

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 3.2. Supply of other Supplementary Inputs
3.2.1. Accessories/Hard wares

In the process of conversion of aluminum profiles into different end products a number of accessories
are required. Accessories are those materials that are used in the final assembly of aluminum profile
products. Regarding to the availability of this raw material, all are sourced from foreign markets and
the factory can buy in a sufficient amount from foreign markets.

Gaskets: are items that are made of different materials with desired shapes, thickness and materials that
are used to be inserted and attached between the door and frame and acts to fix the glass to reduce
movements of in and out, as weather stripping, light and sound seal.

The supply of gaskets material is met through imports. Therefore, the firms who need to start the
project will avail and depends from foreign markets.

Protection film ( for Packing purposes): This auxiliary input is a kind of a thin and transparent such
as plaster and plastic sheet used to cover surface protection of aluminum profile which can effectively
prevent scratches and damage during transportation, storage, processing and installation processes.
Regarding to its sources Plastic sheets and wood are easily available in the local market, whereas the
plaster is available in the foreign market and can be imported.

Hinges: This hard ware is a movable input that joins windows, doors and a frame. Hinges are used on
each and every window, without hinge a window cannot open or close or you can say window is
useless without this. Hinges should be about 8 times stronger than the window door itself for its proper
operation. The joint between a door and a frame that pivots when the door opens is an example of a
hinge. It is made up of different materials such as aluminum, iron, steel and brass. This input is also
available with in domestic market.

Window Knobs: This input is a popular type of equipment used for opening and closing a door. It
provides only a place to grip so that the door may be pulled towards oneself. Window knob should be
smooth, well finished and easy to turn .The location of the door handle on the door may vary between a
few inches or centimeters away from the edge of the door to the exact center of the door, depending on
local culture, decorative style or owner preference.

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Electrodes: This auxiliary input is used for welding purposes. The country has imported this type of
inputs from different parts of the world mainly from China, Turkey and India.

Epoxy Adhesive: This is used to bond components of aluminum doors and glass together.
Epoxy adhesives are a major part of the class of adhesives called structural adhesives or engineering
adhesives. This input is supplied by importing from foreign sources mainly from United Arab Emirates.

Coolant Oil: This is a fluid which flows through a device to prevent its overheating, transferring the
heat produced by the device to other devices that use or dissipate it. This input is available in domestic
market from importers of petroleum gases such as National oil company (NOC), Oilibya etc.

3.3. Market Arrangements of the Raw materials and inputs

Imported raw materials, Aluminum billet, Aluminum profiles, glass and gasket and other accessories
are purchased either directly from source countries or indirectly from brokers from the foreign market.
Other raw materials such as some accessories can be easily accessed in the local market. In the case of
aluminum scrap, there is no organized local market. Instead, it is collected both directly from
manufacturers and from individual collectors that collect the scrap from manufacturers.

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4. TECHNICAL DATA

4.1. Technical Background of the commodity

Aluminum profile and Aluminum product manufacturing are two integrated manufacturing processes
which can be implemented either in a separate or integrated way. Aluminum profile manufacturing
demands fewer man power compared with Aluminum product manufacturing. The reverse is true when
capital investment, machinery and level of automation are considered.

The technology required by both units is available in ample. Machinery suppliers are available in
Germany, Canada, Italy, Turkey and China. In this section of the study, the production process,
machinery and utility required for both the aluminum profile and product manufacturing are present.

4.2. Production Process Description

The aluminum profiles are extruded on extrusion press machines having pressing capacity of range 15
to 250 MN. The manufacturing of aluminum profile starts from aluminum ingots. Aluminum ingots are
melted in the melting furnace (oven preheating system), and then the ingot is cast into billets. In most
cases, the profile production process starts from Billet extrusion by importing already produced Billets.

The pre-heated billets are then loaded into an extrusion press and, at the exit of this press a line for the
reception of the extruded profiles will be followed by a bench for cooling. Then straightening
(stretching) and cutting the profile to size is performed. Billets can also be produced from the recycled
Aluminum scrap passing through melting and casting by adding standard amount of Si and Mg.

Then the profiles are cut in to a required length, grouped together side by side on support tables or in
baskets and conveyed to an ageing chamber or tunnel where they stay at a present temperature and for a
preset time of treatment so their molecular structure can stabilize and the extruded aluminum can reach
mechanical characteristics. After this treatment, the profiles are recovered and conveyed to other
process such as anodizing and other mechanical conditions. Then finally the finished products passed to
the assembly section for production of windows, doors and curtain walls .The profile as it is can be
arranged for transport.

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 Figure 1: Aluminum profile and curtain wall production process

4.2.1. Aluminum profile manufacturing steps

The steps in the aluminum profile manufacturing process are described as the following:

1. Ingot casting: aluminum ingots are fed into a casting furnace by adding standard proportion of Si
and Mg where it is transformed in to cylindrical billets. Most of the time the standard size of the casting
billet is form 6m up to 9m. Alloying and mill treatment improve physical properties, but welding
reduces them. Essentially pure aluminum has an ultimate tensile strength of 65.5 MPa (9500 lbf/in2)
subject to a slight increase by mill treatment which is lost during welding. Alloy 6061, which contains
0.25 percent copper, 0.6 percent silicon, 1 percent magnesium, and 0.25 percent chromium, has an
ultimate tensile strength of 124 MPa (18,000 lbf/in2) in the annealed condition, 262 MPa (38,000
lbf/in2), mill treated as 6061-T6, and 165 MPa (24,000 lbf/in2) at welded joints. Extensive use is made
of alloy 1060, which is 99.6 percent pure aluminum, for hydrogen peroxide; of alloy 3003, which
contains 1.2 percent manganese, for high-purity chemicals; and of alloys 6063 and 6061 for many other
services. Alloy 6063 is the same as 6061 minus the chromium and has slightly lower mechanical
properties. Generally there are three casting methodologies for aluminum casting. These are Sand cast,
Chill Cast and Die Cast.

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2. Preparation of Billets:-Process starts with Aluminum Billets, which must be heated to about 800-
925 ° F. Aluminum extrusions are made from solid aluminum cylinders called billets, which are
continuously cast from molten aluminum. Billets are available in a wide variety of alloys, pretreatments
and dimensions, depending upon the requirements of the manufacturer.

Figure 2: Preparation of Billets

3. Die heating: Extrusion dies have to be pre-heated before they are loaded into the extrusion press. If
dies are not heated to the correct temperature there is the risk of premature die failure, incorrect metal
flow and sticking billets.

The reasons for pre-heating dies are well known throughout the extrusion industry:

• To reduce the risk of premature die failure

• To reduce the amount of scrap produced at the start of a production

• To avoid cost of the lost production associated with sticking billets.

Infrared heating permits the rapid heating of dies with good uniformity. The use of infrared heating
offers a practical industrial method for reducing die preheating times and minimizing the energy costs
of die preheating.

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4. Billet and Ram Lubricating: After a billet reaches the desired temperature, it is transfers to the
loader where a lubricant is added to the billet and to the ram. The smut acts as a parting agent
(lubricant) which keeps the two parts from sticking together.

5. Cradle Loading: After the lubrication process, the billet is transferred to the cradle for further
actions.

6. Application of Ram Pressure: The ram applies pressure to the dummy block which, in turn, pushes
the billet until it is inside the container.

7. Pressing Process: Under pressure the billet is crushed against the die, becoming shorter and wider
until it has full contact with the container walls. While the aluminum is pushed through the die, liquid
nitrogen flows around some sections of the die to cool it. This increases the life of the die and creates
an inert atmosphere which keeps oxides from forming on the shape being extruded. In some cases
nitrogen gas is used in place of liquid nitrogen. Nitrogen gas does not cool the die but does create an
inert atmosphere.

8. Squeezing: As a result of the pressure added to the billet, the soft but solid aluminum begins to
squeeze through the die opening.

Figure 3: Extruder Cavity/machine

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9. Temperature Recording and Adjustment: As an extrusion exits the press, the temperature is taken
on the press plate. This records the exit temperature of the aluminum extrusion. The main purpose of
knowing the temperature is to maintain maximum press speeds. The target exit temperature for an
extrusion is dependent upon the aluminum billets. For example, the target exit temperature for the
aluminum billets 6063, 6463, 6063A, and 6101 is 930° F (minimum). The target exit temperature for
the aluminum billets 6005A and 6061 is 950° F (minimum).

10. Pulling extruded aluminum and cooling the extrusion die: Extrusions are pushed out of the die
to the lead-out table and the puller, which guides aluminum down the run-out table during extrusion.
While being pulled, the extrusion is cooled by a series of fans along the entire length of the run-out and
cooling table. High pressure extrusion transforms heated billets in to profiles.

11. Cutting to size: When the extrusion reaches a desired length, the extrusion is cut with a profile saw
or a shear or disc cutter.

Figure 4: Cutting line

12. Transferring: Aluminum is transferred (via belt or walking beam systems) from the run-out table
to the cooling table.

13. Stretching and Work Hardening: After the aluminum has cooled and moved along the cooling
table, it is then moved to the stretcher. Stretching straightens the extrusions and performs a 'work
hardening' (molecular re-alignment which gives aluminum increased hardness and improved strength).

12
Figure 5: Press and stretching line

14. Sawing: The next step is sawing. After extrusions have been stretched they are transferred to a saw
table and cut to specific lengths. The standard cutting tolerance on saws is 0.125 inch or greater,
depending on saw length. After the parts have been cut, they are loaded on a transportation device and
moved into age ovens. Heat-treating or artificial aging hardens the aluminum profile by speeding the
aging process in a controlled temperature environment for a set amount of time. Heat treatment
provides aluminum extrusions with customer’s desired hardness and properties. Heat treatment is
classified in to quenching, tempering, stabilizing and annealing which are adopted according to
customers’ orders.

To some aluminum product manufacturers this is a critical stage where they set their preferred sizes to
reduce waste in their aluminum profile consumption.

Figure 6: Heat treating/heat treatment process

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15. Powder Coating: After the heat treating process, the parts are powder coated as per custom
specifications.

Figure 7: Powder coating line

16. Anodizing: Aluminum alloys are anodized to increase corrosion resistance and to allow dying
(coloring), improve lubrication and improve adhesive effectiveness. Anodizing process involves
buffing, pickling, in acid solution then cleaning in water, neutralizing in chemical and keeping the
extruded sections in anodizing tank for specified time. These are again washed in water and dried in
sun or by using drying machine. To anodizing aluminum layer is grown by passing direct current
through an electric solution with the aluminum object serving as anode. The current releases hydrogen
at the cathode and oxygen at the surface of aluminum; and creating buildup of aluminum oxide. This
step enables the manufacturer to produce many varieties of colored profile products.

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Figure 8: Anodizing controls

17. Measuring and inspection: The extrusions of different feet are cut to length for each specific part
number. The ends are usually not to tolerance; therefore they are removed for scrap. Parts are gauged
for ID (internal diameter), OD (outside diameter), L (length), Flatness, etc. and are packaged according
to specifications. Packing is the last process of a finished product, to ensure the quality zero defects;
quality inspection is performed mainly on product appearance before packing.

18. Laminating and Packaging: Before packaging the profile is laminated by using laminating plastic
through laminating machine. Then the final profile is packaged by using plastics through packaging
machine.

4.2.2. Curtain wall and ceiling production

Curtain walls and ceiling are typically designed with extruded aluminum members by using different
shape dies. Curtain wall and ceiling are interior and exterior building wall and roof framework
assembly carrying no roof or floor loads. The curtain wall can represent the entire skin of a building or
a portion of the interior and exterior facade.

A curtain wall is designed to resist air and wind forces acting on the building, seismic forces (usually
only those imposed by the inertia of the curtain wall). Modern curtain walls are typically designed with
extruded aluminum members. In general, curtain wall systems are building “skins” which are connected
to the building, but are not considered part of the building structural system.

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Aluminum curtain wall is prepared by extrusion and using of different dies through extrusion machine,
stretching through stretching machine, cutting through disc cutter, and coating as per the customer
specification.

Aluminum ceilings can be used in a variety of applications. They are suitable for both indoor and
outdoor use. Aluminum ceilings add a distinctive architectural element to a variety Aluminum ceiling
can enhance the appearance of space in a room. Aluminum ceiling preparation or production processes
includes cutting, coating and packaging operations. The ceiling is cutting in to the given standard
through the disc cutter (shearing machine), coated as per the customer specification and packaged
trough packaging machine. Extra futures are added as per the request.

4.2.3. Aluminum profile recycling

Re-melting the aluminum metal in to a new ingot requires much less energy than the primary aluminum
production from its ore. Aluminum recycling thus saves raw materials and energy, and also reduces
demands on landfill sites. Using today’s technology aluminum can be melted and reused without loss of
quality. Old scrap is the aluminum material which is recovered after an aluminum product or
component has been produced, used and finally collected for recycling. Recycled aluminum is
produced by re-melting and refining.

Aluminum metal blended with additives becomes molten in a melting furnace then, the molten
aluminum is conveyed to a holding furnace, where if undergoes component adjustment to prepare for
casting. Aluminum can be recycled over and over again without loss of properties. The high value of
aluminum scrap is a key incentive and major economic impetus for recycling. The major machinery in
this process includes but not limited to furnace, crucible and casting machines.

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 4.3. Machinery and Equipment

Depending on the level of automation and proposed setup, there can be different type and nature of
machinery and accessory requirement for the production of Billet and Profile. With lesser level of
automation, the list of machinery and accessories required are depicted in the table below. Lesser level
of automation are preferable for our scenario for many technical and financial reasons.

Table: 4.1: Machinery and equipment needed for aluminum billet and profile manufacturing
Sr. Description purpose
No.
1 Extrusion machine  Used to extrude the aluminum billet in to aluminum
(Press Machines) profile
 There are several ways of aluminum billet extrusion
process:
By direction: direct and indirect extrusion
Forward and backward extrusion
By operating temperature: hot and cold extrusion
By equipment: horizontal and vertical extrusion
2 Coating machine Used to coat the surface of the profile it is a powder with
another sticky material
3 Drying machine Its purpose is to Dry the coated aluminum profile
4 Furnace Billet heating furnace is equipment used to preheat the
aluminum billets before the billets enter into the extrusion
press and used to change the aluminum scrap to aluminum
billet by applying heat through the furnace.
There is different types of furnaces like Melting Furnace,
Preheating Furnace & Ageing Furnace this is used to melt
the aluminum scrap or aluminum ingot and prepare for
billet formation
5 Billet Casting machine Used to mold or cast the melted scrap or ingot in to billet
shape
6 Power Hack Saw/billet Used to cut the billet in to standard size that prepares for
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 cutting machine profile preparation
7 Disc cutter/ shearing Its purpose is to cut the extruded aluminum profile and used
machine to cut aluminum ceiling
8 Cooling water pump, It is used for cooling the billet and the profile
Cooling air compressor

9 Anodizing machine Makes the aluminum profile strong and shine

10 Sand blast/polish machine Used for polishing the profile in order to improve its surface
quality
11 Laminating machine used to laminate the finish aluminum profile using
laminating sheets having company logo, trade motto and
other commercial information
12 Tempering machine It is used for increasing the quality of the glass by applying
Stretcher, Conveyor and heat
Other roller Type run ways
13 packaging machine Have packaging purpose of the finished profile
14 Dies for extrusion There are different types of dies that used for extrusion of
various sizes of aluminum profiles
15 Laboratory equipments It helps to know the proportion of aluminum with the Si and
Mg (Like spectrometer)
Auxiliary equipment
1 Tools &accessories Uses for tool changing, repair and maintenance

2 Forklift, carts, cranes For the purpose of transporting casted and sawed billets,
finished profiles or other equipments, scraps etc….

4.4. Ceiling, Windows and Doors Assembly

Assembly process of aluminum profile starts with accepting customer order along with blue print or
taking measurement of the building dimension on site. Then after sketching of the design, cutting
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aluminum structures as per design, and joining of the parts executed. Finally, fixing of the product on
building is done either by company or others according to the preference of the customer. The glass that
uses for door and window assembly are cut in to a given standard by using glass cutter. Aluminum
frames are components of modular framing systems that are constructed out of many different
aluminum profiles. The separate parts are fabricated separately & then assembled together to serve as
structural systems for commercial, industrial and architectural construction. The production process
flow diagram of the windows and doors assembly is depicted in figure 11 below; and details of each
process is presented next to that.

Figure 9: Process steps of windows and doors assembly

A. Cutting

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The aluminum profiles delivered from the extrusion plant is cut to size according to the design
requirement of the aluminum frame to be fabricated. The major type of cutting operation used in this
stage is sawing.

Sawing is a rapid and versatile cutting method. The two most popular machine types are the band saw
and the circular saw. While a band saw usually has a high speed steel blade, the circular saw can be
equipped with a high speed steel blade or a steel blade with tungsten carbide tips on the teeth. This
latter type is preferred due to a longer lifetime and if a higher cutting speed is required. All types of
sawing blades for aluminum must have extra clearance between their teeth for chip release. The blade
edge speed for a high speed steel blade should be up to 30 m/sec and for tungsten carbide tipped blades
the edge speed may be as high as 60 m/sec.

All saws for structural applications are mechanical and feature some degree of computer control.

Generally, There are three forms of mechanical saws:

 circular,

 band, and

 hacksaws

The circular saw has a blade rotating in a vertical plane, which can cut either downwards or upwards,
though the former is more common. Band saws have less capacity. Structural sections having sizes
greater than 600mm x 600mm cannot be sawn using band saws. The saw blade is a continuous metal
edged, with cutting teeth, which is driven by an electric motor. Hack saws are mechanically driven
reciprocating saws. They have normal format blades carried in a heavy duty hack saw frame. They have
more productivity than band saws. To obtain the highest possible cutting rates, to improve the cut
quality and also to extend the lifetime of the blade, a cutting lubricant and/or coolant are recommended.

B. Machining

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The usual machining operation includes drilling, milling, thread cutting and Punching. The punching
tool required for aluminum is the same as for steel. The only difference is that the clearance between
the piston and the tool die opening is somewhat larger for the aluminum tools. As per the design
aluminum profile cut are drilled, milled and thread cutting properly through different manual or hand
drilling machine, milling machine and copy router machine.

The well prepared or cut aluminum profile is punched through air compressor puncher on the selected
parts that states in the design. Punching of doors and windows profile is performed depending on the
order details and specification.

C. Riveting

Special riveting systems, such as the POP-rivets and similar types are also widely used on most kinds
of products, especially on non-structural types, such as window frames, doors, panels etc. Rivets are
connectors in different assembly process. The punched profile that uses for door and window assembly
is riveted through riveting machine and tightened if it is not fixed properly. In most scenarios, welding
is less recommended for Aluminum profiles compared with riveting.

D. Bending/curving

In some scenarios curved structures may be required to produce oval shaped frames. In such case, the
role of aluminum profile bending machine is greater. Such curved frames demanded in special orders
like church window and doors or different houses and this is performed through bending machine by
using different dies as per the size and shape of the profile. The bending equipment and methods for
aluminum are basically the same as for steel. However, when bending aluminum plate profiles and
elongation capacity should be considered carefully.

E. Welding:

The well cut gasket that is used to fill the clearance between the assembled door and window is welded
through gas or arc welding process by using welding machine.

F. Routing

Grooves, various kinds of holes and slots are processed through on aluminum windows and doors are
performed through aluminum profile copy router machine.

G. Glassing
21
Glasses are cutting depending on the specification or specific size through glass cutting machine. After
the aluminum profile is assembled in to window and door appearance, the well cut and prepared glass is
assembled in to the door as well as windows. Different sizes of seals/gasket are used on the assembly of
glassing because it helps to fix the glass to reduce movements of in and out. In this case to improve the
quality of the glass tempering or heating through the tempering machine is important. This automatic
CNC-shaped Glass Cutting Machine used to cut out any shape of glass with high precision. The
advanced servo motor are driven the machine to cut the glass sheet automatically in high speed and
precision. By pressing the starter on the control panel, the cutting would be automatically done by the
gear-drive equipment, with advantage of high efficiency and easy operation to cut with multiple cutters,
self-lubricating cutter holders, easy operation and improving production efficiency. After Finishing
cutting, the double beams automatically returned.

H. Finishing

The final assembled aluminum profile door and window is checked before the dispatching and
transportation. If the rivet is not fixed properly tighten is necessary.

Table: 4.2: Machinery and equipment of aluminum Ceiling, window and door assembly
Sr. Machinery and equipment Purpose
No.
1 Aluminum profile cutting machine It is used either circular saw or disc cuter etc…
or Hydraulic notching And used for angle cutting of the profile
machine(variable angle cutting)
2 Copy router machine Performs different operation like grooves, various
kinds of holes, slots etc…….
3 crimping machine (corner press It is automatic or hydraulic. It is used for fitting the
machine) corners of the well cut profile ;it is also known as
force fitting
4 Milling machine continuous milling is available in vertical and
horizontal way of slot arrangement

5 Drilling Hand drilling or drilling machine is available to

22
 perform different holes that uses for the assembly
process
6 Welding machine It is whether arc welding or gas welding it is used to
weld the gasket during the assembly process
7 Stand grinding machine It uses for the grinding purpose and for un necessary
surface or sharp surface
8 Bending /curving machine It is hydraulic and used for bending different profiles
that used for church as well as special customer
orders
9 Dies There are different types of dies that uses for bending
the profiles
10 Punching machine Its purpose is for punching the well cut profile
11 Adhesive mixture and pouring This is used to mix and apply adhesives such as
machines Epoxy
12 Roller type Benched The worker can put and push their work to the next
worker for further operation by sliding the job on the
roller type benches. This enhances the assembly
process
Auxiliary machines
1 Tools &accessories Uses for tool changing, repair and maintenance
2 Forklift, carts, cranes For the purpose of transporting casted and sawed
billets finished profiles or other equipments, scraps
etc….
3 Measuring & hand tools It used for different facilities like spectrometer, hand
drilling tool etc….
4 Automatic glass cutting machine Used to cut the glass

23
 4.5. Quality control (inspection) of aluminum billet and profile

To achieve quality final product, arrangement for quality control setup is crucial. This setup is
dependent on the type of the manufacturing setup. A company that produce only billets requires
different setup from a company that produces both Billet and Profile; and is much different from a
company that produces Billet, Profile and Products. In this study, quality control setup for Billet and
Profile as well as products manufacturing setup is addressed.

In billet production, once the billet is made, a sample disc is sawed off and taken to the Mass
Spectrometer for composition analysis to ensure the correct percentage of Si and Mg. These samples
are marked and stored for future audits or if problems occur in the processing. Each stage of processing
has controls and histograms apart from the structural and molecular quality inspection using
Radiography and Magnate testing. Manufacturers can send their specimen to standard regulating bodies
for conformity of their products with already established standards.

In the manufacturing site, parts are checked dimensionally and are gauged as final inspection prior to
packaging. When parts are powder coated, the coating thickness, hardness, and durability are tested
using several methods these are:

 Boiling at 8 hours on section

 Scratch test
 Salt Spray Chamber

Figure 10: Boiling at 8 hours on section, Scratch test and Salt Spray Chamber

24
 4.6. Utility Requirement

The heat energy required for the Billet and Profile production quite significant. Depending on the type
of the furnace, the source of heat energy could be varied. Electric furnaces might require separate
transformed yard near the plant. Other sources of such as fuel or Coal could be applied. Cooling
process requires sufficient amount of water. Thus the plant location should consider the availability of
both water and electricity.

25
 4.7. Civil Work Requirements for Aluminum Profile and Its Products

Building requirement

Minimum requirements of civil work considerations for aluminum profile and its products are
discussed in this commodity study to ensure durability and functionality of buildings in addition to
design requirements of all buildings.

Production hall

The size of the aluminum profile extrusion plant must be sufficient in size to accommodate the long
extrusion machinery. Conformity with the machinery manufacturer’s specification for size and strength
should be incorporated during the design of the building. A separate hall could be used for the purpose
of aluminum profile products production.

Foundation

-Foundation must be sound and firm to bear load of machineries in the hall.

Floor

Must be Reinforced Concrete slab & Non-slippery.

Wall

Wall Surface could be either HCB and/ EGA with proper opening for well ventilation & I-Section
steel Column structure or concrete column with proper room height. Dynamic and static loads from the
Overhead crane must be considered during the design of the building.

Roofing

-The roof should be Steel Structure with EGA covering.

Openings

-Should be Metal, cleanable, easy to open, penetrate adequate light and ventilation.

Stores (Spare part, Chemical, Raw material, finished product), Work shop

- Sufficient openings must be provided so that it is well ventilated

- Can be pre-engineered structure or HCB wall internally plastered and painted and external
pointed.
26
 - Flooring must be RCC and smooth cement screed.

- Prevented from direct sunlight and the temperature should be kept below 25º.
Toilet & Shower, Toilet and changing room
Adequate changing rooms, shower, hand wash basins, and water closets (separate for both genders)
should be provided. These facilities have to be separated from the production hall or it should not
directly face the production hall and must be ensure hygienic removal of waste water.

Auxiliary Facilities
Minimum requirements for the under listed buildings: foundation can be trench & it has to be sound
and capable to bear load of super-structure, walling material should be HCB internal plastered &
painted and external plastered or pointed wall and cement screed flooring.
 Office and Administration block
 Staff canteen
 Generator House
 Guard house

General Site Work

- Compound should be graded to ensure proper drainage and also be maintained in a clean and
hygienic state.
- Sufficient Septic tanks including percolation ditch should be provided.
- Site sanitary and Site Electrical installation works shall be provided following the standard and
working drawings.
- Walkways, driving ways and parking area shall be constructed at least with semi dressed stone
bedded with selected material and pointed with cement mortar.
- Access road to the project shall be well graded and compacted with selected material to the proper
thickness so that heavy truck can pass easily.
- Fence shall be barbed wire with concrete post and Metal gate.

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5. MARKET DATA

5.1. Market Segmentation

The market destination of the envisaged products is domestic market because aluminum profile and its
products manufacturing is new to the country as well as Ethiopia has no prior such robust experience of
exporting these products to the foreign market. Moreover, there is unsatisfied significant size of
demand in the country.

5.2. Demand determinants

The demand for aluminum profile and its products could be quantified using an end user approach,
leading indicator approach or an effective demand approach. The demand for these envisaged products
is mainly influenced by:
- Growth in the construction sector,
- Growth of population associated with urbanization, and
- Increase in income & economic growth of the country.
 List of possible end users of these products among multitudes are:
- Private house construction,
- Condominium house construction (low cost housing program run by the government) ,
- Real estate construction, and
- Government and non government large investment projects such as industrial parks, university
and college building constructions, etc.

5.3. Domestic demand

According to BMI (Business Monitor International) Research, Ethiopia is set for further building-
related growth in 2016. BMI estimates that the nation will maintain its status as a “regional growth
outperformer” by posting real growth rate of 18.6%. The research firm also suggests that Ethiopia will
enjoy 12.7% growth until 2021 with final ten year growth averaging 10.7% in 2025-54.

28
 According to Ministry of Construction and Housing Development data, the government has a plan to
build 150,000 condominiums per annum in GTP II. CSA data discloses that the average number of
rooms in urban housing is about 2.1 rooms. Besides, the average housing height of the building is
estimated to be about 2.5 meters.

Table 5.1: Housing Unit Data

Housing Unit 1994 2007

Total Housing Unit 10,766,729 15,103,135

Construction & Building of houses

115,873 355,194
( with bricks , block & stone wall)

Source: CSA Census Report on Population and Housing, 1994 and 2007

5.4. Supply-side data

5.4.1. Import
Table 5.2: Doors, windows and their frames and thresholds for door, of aluminum (excluding door & furniture)
2013 2014 2015 2016 2017
Imported Imported Imported Imported Imported
Exporters quantity, Tons quantity, Tons quantity, quantity, Tons quantity,
Tons Tons
World 461 613 1,032 1,137 1,510
China 222 422 872 733 1,191
Turkey 22 14 4 225 121
Italy 106 104 58 106 91
United Arab 44 48 81 32 84
Emirates
Source: ITC Trade map
HS code: 761010

29
 5.4.2. Domestic Production

Table 5. 3: Trend of domestic production of aluminum profile

Type of product Unit of 2015 2016 2017 2018
Measure

Aluminum profile Ton 468.42 1430.6 2054.9 2485

Source: Metal Development Institute
 Operational firms production capacity in the industry

Design capacity
Name of factory in ton/annum Type of product
Inter Africa extrusion Aluminum 6,500 Aluminum Profile
(B & C Aluminum)
Huaajia Aluminum Industry PLC 10,000 Aluminum Profile
Source: Metal Development Institute
 Projects under implementation
Name of factory Design capacity in Type of product
ton/annum
Tsion Girma 6,000.00 Aluminum Profile

Source: Metal Development Institute

5.5. Marketing channel and arrangement

The marketing arrangement for aluminum profile and its products could be the seller sale their products
to private contractors, whole sellers, government institutions and individual customers both at factory
gate and through their own distribution outlets as observed from operational firms.

In all cases, the transportation cost is covered by the buyer but depending on the level of order and
agreement between the seller and the buyer; the seller may provide transportation services. Buyers own
the ownership of the product at seller factory gate.

Regarding marketing channel with buyers, there is direct as well as indirect sell to buyers or retailers
and rarely the seller offers credit sales merely to its credit worthy customers. As per the field visit by
the case team, we observed that there is no market problem associated with the product in the domestic
market.

30
 5.6. Marketing Strategy

The aluminum profile and its products in the country are facing a huge competition from imports all
over the world. To be competent in the market and the leader in the domestic market, domestic firms
which planned to be established in the country should device their own appropriate marketing strategy.
The purpose of the designed marketing strategy shall identify and then communicate the benefits of the
target market and it comprises of producing quality competitive products that could compete with the
imported ones by recognizing the strengths and weakness of their firm.

The firms also need to consider including anodizing process for their production process to increase
the quality of the products. Moreover, they should own a competent pricing strategy.

6. PROBLEMS, RISKS, AND SUCCESS FACTORS

6.1. Key Problems

 Raw Material Price Escalation: It is obvious that the raw materials price for this sub-sector are
escalated on the international market. So, the rise in the raw material price on the international
market is considered as one of key push factors.
 Huge Cost of Transportation: Transportation cost from the port to the project site is covered by
the owner of incumbent project.
 Customer Preference towards Local Products: It is undeniable that customers attitude towards
local products compared to import is so poor which in turn bring an adverse effect on local
products.
 Power Interruption

31
  Huge International Competition in the Industry: It is obvious that china’s brand products are
available in the local market with low prices which can be strong push factor for the local
producers.

 Existence of Substitute Product Development: The existence of substitute products which are
made from UPVC especially for doors and windows can be a big key push factor for the
incumbent projects.
6.2. Key Success Factors

 Professional Management

 Selection of Modern Technology

 Producing Quality Product

 Smooth Relationship with Laborers

 Production Experience of owners of the incumbent project

7. PARAMETERS, TECHNICAL COEFFICIENTS AND ASSUMPTIONS

This part of the study is devoted on the assessment of the coefficients and parameters, which are to be
used on the determination of costs and revenue in the production of aluminum profile and its products.
The very important caution which has to be taken by the users of this study is that the parameters and
prices determined are just indicatives, which assists to understand where the real parameter lays.

7.1. Assumptions
a) Number of shift ………………………………………..1
b) One shift ……………………………………………… 8 hours
c) Number of working days per year……………………270

7.2. Revenue

Table 7.1: Factory gate price of output

32
Product Unit price
Aluminum profile 141.5 Birr/Kg
Aluminum door & window 1,950 Birr/M2
Aluminum curtain wall 2,200 Birr/M2
Aluminum ceiling NA (Not Available)
Source: B& C Aluminium Production PLC

7.3. Investment Requirement

a) Building requirement
Production hall, Work shop
Stores (Spare part, Chemical, Raw material, finished product)
Toilet & Shower and changing room
Auxiliary Facilities

Office and Administration block

Staff canteen
Generator House
Guard house
b) Major and Auxiliary Machinery Requirements of Aluminum profile and aluminum profile product
Production.
Please refer the attached list at the end of the part of technical data.
c) Vehicles

Table 7.2: Minimum vehicle requirement by type

Sr. No. Type of vehicle Purpose
1. Cargo truck Raw material & output transportation
2. Service vehicles For serving employees in transportation
3. Pick up For the manager

7.4. Operational Expenses

Table 7. 3: Raw Material Price (FOB price exclusive of scrap costs)

33
Item Price Unit of measure

Aluminum Billet 66 Birr/kg

Aluminum Profile 125-150 Birr/kg
Epoxy 2073 USD/Tons *
Scrap Government 35-40 Birr/kg
Private Birr/kg
60
Dye 2361 USD/Tons **
Packing material Plastic sheet 40 Birr/kg
NA  For 1 role of 1.5 meter
Plaster (lamination material) width
 Use submitted performa
invoice
*HS code: 35069100
**HS code: 32041900
NA-Not available

a) Consumable products

These are items which are necessary during machinery breakdown to prevent from aluminum leaking
and it varies according with the quality of the machinery. Hence, for fiber glass cone and ceramic flter,
the appraiser shall use submitted performa invoices considering the technology.

b) Conversion rate
 1.2 kg of Aluminum input is required to form 1 kg of aluminum profile products. The
remaining 20 % will be in scrap form that will be recycled further and out of which 5- 6 %
is a waste.
 1 ton of aluminum profile needs 150 liters of dye for coating.
 160 liter of diesel is required for extrusion process
 150 liter of diesel is required for 1 tons of aluminum for casting

c) Utilities

34
 Electric consumption ………………………as per the machine specification
Water consumption ………………………. .500 lit/ton with recirculation
Stationary…..................................................0.005% of sales
Telephone and Fax Expense………………0.05% of sales

d) Travel and per diem

 Perdiem…………………………………………………………3% of salary and wage

e) Fuel and lubricants

Table 7.4: Fuel for truck

Distance in Fuel
Gross Pay Fuel
km Consumption per AVERAGE
Vehicle Load Consumptio
travelled in Km for each ton lit/km/ton
Weight (ton) n per Km
one liter of load(lit/km/ton)
7.5 TON 3.124 5.840 0.171 0.055
12 TON 6.311 5.500 0.182 0.029 0.035
18 TON 10.198 4.540 0.220 0.022
 1liter fuel price…………………………………………………18-20 birr
 Oil & Lubricant cost ……………… ………………………….2 % of fuel cost

f) Uniform and Clothing Requirement

 Uniform price ………………………………………… …………300 birr /worker

The beneath table exhibits the uniform requirement for the workers.

Table 7.5: Type of required uniform and clothing

Uniform Type
Leather/

Over all
Pollster
plastic

muffs

Mask
Hand
Cape

glove
hand
Over

Kaki
Rain
Coat

Coat

Dust
Suit
Ear

Position
Section Head 1 yr

35
 Uniform Type

Leathe

Pollste
plastic

muffs
r Suit

Mask
Hand
Cape

glove
Over

Over
Kaki
Rain
Coat

Coat

Dust
Ear
r/
Position
Quality Control 1 yr 2 yr
Expert
Messenger 1 yr
Cleaner 1 yr 1 yr 1yr
Driver 2 yr 1 yr
Supervisor 1 yr 2 yr 1 yr 1 yr
Operator 1 yr 2 yr 1 yr 1 yr 1 yr 1yr
Mechanic 1 yr 2 yr 1 yr 1 yr 1yr
Electrician 1 yr 2 yr 1 yr
Store keeper 1yr 2yr
Guard 2 yr 1 1 yr
yr
 ‘2yrs’implies the uniform or the cloth serves for two years time
 1yr implies the uniform or cloth serve for a year

g) Insurance

The following are the major insurance categories in surveyed food factory.
 Earthquake, fire, insurance for input, output & spare part.
 Building, Machinery and Equipment
 Third benefited from property and life insurance for vehicle.
 Personal and group insurance for 24 hrs for managers.
 Work time insurance and work man composition insurance for employee.

h) Depreciation & amortization

Table 7.6: Depreciation rate

Sr. No. Description Percentage of original value
1 Building and construction 5

36
 2 Machineries and equipments 10
3 Furniture and fixture 10
4 vehicles 20
5 Generator 10

i) Repair and Maintenance:

a. Building and Construction……………………….… 2% of original cost
b. Machinery & Equipment: ………………………… 5% of original cost
c. Furniture and Fixture: ………………………............5% of original cost
d. Vehicles: …………………….......................................10% of original cost
e. Generator………………………………………………5% of original cost

j) Land Lease Cost

It is according to the land lease agreement between the project and concerned office from where the
land would be availed.

k) Working capital Requirement

Determination of working capital requirement is one of the major short-term planning, which plays
very vital role for operating the business successfully. The determination of working capital is to be
done very effectively otherwise there may be over or under estimation of working capital. The amount
of working capital should be sufficient. The amount of working capital is determined by considering a
wide variety of factors. Some of which are nature of business, seasonality of operations, production
cycle, production policy, credit policy, and market condition.

37
Based on the above factors, the following periods stated in the table below could be considered for
working capital determination of aluminum profile and its products manufacturing.

Table 7. 7: Working capital determination

Description Period (Months)
Salary and Wage One Month
Raw material Import Four Months
Local 1 month
Electric bill One Months
Fuel and lubricant One Months
Stationary and office supply One Months
Travel and per diem One Months
Account Receivable 7 days
Working in progress *
Finished products 0 days ( It is an order based manufacturing)
Note: Setting of period for working in progress is so difficult to determine, i.e., the work time required
to complete one aluminum profile and its products, since it relies on different factors such as size and
design of lodged order.

38
REFERENCES

 Central Statistical Authority

 International trade center (ITC)
 B & C Aluminum Production PLC
 Brace, A.W. and sheas by, P.G; the technology of analyzing aluminum technology
 German Aluminum FAÇADE industry PLC
 Huaajia Aluminum Industry PLC

39