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
Cost$

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
Cost
$

Qty/
day

Prod.
Cost/d
ay$

Prod.
Cost/month

Prod.
Cost/Yr

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/
day

Qty/yr

Unit
Cost

Prod
Cost/yr

Unit
price

T/rev

Rubber
Cement

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