A compressor has a cylinder formed of an aluminum alloy, and a moving member slidably received within the cylinder. Hard particles are dispersed in the inner peripheral surface portion of the cylinder. The hard particles are formed of a chemical compound such as a nitride and a carbide. The cylinder is manufactured by preparing a first green compact formed of a mixture of a powdery material for the aluminum alloy and the hard particles and a second green compact formed solely of the powdery material, preparing a billet having an inner layer formed of the first green compact, and an outer layer formed of said second green compact, placing the billet in a preheated state into a container and further heating same therein, and fitting a mandrel through a central bore of the billet and pressurizing the billet to extrude same through a die hole in a die.