CEMENT
Introduction
This profile envisages the establishment of a plant
that will make Rubber Cement. Rubber cement is an adhesive made from
elastic polymers (typically latex) mixed in a solvent such as acetone, hexane,
heptane or benzene to keep them fluid enough to be used. This makes it part of
the class of drying adhesives: as the solvents quickly
evaporate, the "rubber" portion remains behind, forming a strong yet
flexible bond. Often a small percentage of alcohol is added to the mix.
Production Process
The process to make rubber cement is relatively simple.
After the rubber is broken down into smaller pieces, it is mixed with the
hexane-or heptane-based solvent and then various sizes of containers are filled
with the liquid. Most equipment is automated.
Raw Materials
Rubber cement is an opaque liquid that contains pulverized natural or synthetic
rubber and a solvent based on hexane or heptanes. Grades of rubber cement may
contain 70-90% heptanes or hexane
and 1-15% isopropyl alcohol (isopropanol) or ethyl alcohol (ethanol). The
rubber is received in the form of large blocks or slabs, typically 100 lb (45
kg) in size.
Scale of Investment, Capital Investment
Requirements
The total Capital Investment cost to start this project is estimated at USD70.
Market Analysis
The demand for Rubber cement is favored in art
applications where easy and damage-free removal of adhesive is desired. For
example, rubber cement is used as the marking fluid in erasable pens. The
rubber cement can be removed via the eraser up to 10 hours after application.
However, there are no established firms in this industry in Uganda.
Project Costs
1. Capital Investment Requirements in
US$
|
Item |
Units |
Qty |
Unit |
Amount |
|
Truck |
No. |
1 |
8,000 |
8,000 |
|
Grinder |
No. |
1 |
2,500 |
2,500 |
|
Mixer |
No. |
1 |
500 |
500 |
|
Tanks |
No. |
5 |
100 |
500 |
|
Furniture |
No. |
2 |
30 |
60 |
|
Weighing Scale |
No. |
1 |
100 |
100 |
|
Packaging Machine |
No. |
1 |
1,000 |
1,000 |
|
Total Amount |
12,660 |
2. Operating Costs in US$
|
Item |
Units |
Unit |
Qty/ |
Prod. |
Prod. |
Prod. |
|
|
Direct Costs |
|||||||
|
Rubber |
Kgs |
0.75 |
500 |
375 |
9,750 |
117,000 |
|
|
Heptane |
Ltrs |
50 |
25 |
1250 |
32,500 |
390,000 |
|
|
Ethanol |
Ltrs |
0.44 |
75 |
33 |
858 |
10,296 |
|
|
Sub total |
1,658 |
43,108 |
517,296 |
||||
|
General Costs (Over heads) |
|
||||||
|
Rent |
500 |
6,000 |
|||||
|
Labour |
500 |
6,000 |
|||||
|
Utilities (Power & Water) |
800 |
9,600 |
|||||
|
Repair & Maintenance |
300 |
3,600 |
|||||
|
Packaging Materials |
200 |
2,400 |
|||||
|
Fuel |
500 |
6,000 |
|||||
|
Depreciation(Asset write off) Expenses |
263.8 |
3,165 |
|||||
|
Sub - total |
3,064 |
36,765 |
|||||
|
Total Operating Costs |
46,172 |
554,061 |
|||||
3. Project Product Costs & Price Structure
|
Item |
Qty/ |
Qty/yr |
Unit |
Prod |
Unit |
T/rev |
|
Rubber |
600 |
187,200 |
2.95 |
554,061 |
3.5 |
655,200 |
4. Profitability Analysis
|
Item |
Per day |
Per month |
Per Year |
|
Revenue |
2,100 |
54,600 |
655,200 |
|
Less: Production & Operating Costs |
1,658 |
46,172 |
554,061 |
|
Profit |
442 |
8,428 |
101,139 |