The Steel sector must be developed to meet up with challenges posed by auto parts replacement by developing auto parts production industries such as Inner and outer panels of automotive bodies, wheel housings and peripheral components, fuel tanks automotive exhaust systems, automatic fuel tanks and radiators, Steel cord for reinforcement radials tyres. Steel sector is the backbone of any economic or industrial development of any nation. The industrial revolution of the Government should aim at boosting the steel industry .To is able to produce car components, the establishment of small plants must be encouraged .The raw materials to produce car parts must come from our indigenous steel industry. In the situation of the Country where spare parts and components are not readily available therefore local production and local content must be encouraged. The research paper therefore carried out an Investment analysis to analysis the establishment of a plant for the manufacturing of Spheroidal Graphite iron for the manufacturing of spare parts, components for automobile industry. The analyzed investment proved that the amount to be invested in this plant could be recouped within the stipulated period of three years. Time value of money was considered throughout the implementation of the project. The describe investment analysis present a unique way in handling the establishment of plants of this nature. The work further looked into some areas like market potential of Spheroidal Graphite Iron, its characteristics and its vital role in engineering applications, implementation schedule, technical aspects that include all the necessary details for project execution, quality control and standard, pollution and protection within the plant, the production capacity of the plant were highlighted this shows that the plant can produce about 450 metric tonnes of finished castings in a year. The financial aspects and analysis were discussed in details, revealing the amount that could be involved in floating the plant for meeting the needs and demands that may arise from automobile industry. The overall aim of the project was achieved, this indicated that within a year of the establishment of the plant, a lot of revenue could be generated as shown from the rate of return on investment and the form break – even point. Some recommendations were given to encourage the establishment for such plants in any part of the country, which will continue to meet the demand of our local industries.
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