MAKING ADHENSIVE PLYWOOD


Introduction This project idea is for production and marketing of adhesive plywood. Plywood is a
common building material that is used to line roofs or as wall or floor paneling. It is also used in furniture manufacturing and it is made by gluing together an odd number of thin layers of wood. These layers are arranged so that the direction of the grain of each layer is at a right angle to the adjacent layer. The outer layers are called faces and backs, while the inner layer called the core. Plywood can be made from hardwood or softwood and this determines its use. Soft plywood can be made from Douglas-fir or
southern pine, while hardwood can be made from oak, birch, cherry, walnut and other woods. Interior plywood uses moisture-resistant glue while exterior glue uses water-proof glue. The production capacity is
300 pieces per day and estimated revenue is approximated at US$ 200 per year.
Production process
Choose a log that is straight, round and ideally without knots or decay. Remove the bark from the log and cut logs to the desired length, steam-heat to soften the surface. Make the veneer. This can be done by slicing, sawing or cutting. Use sawing for fine finished woods, use slicing for wall panel faces or furniture and for other uses rotary cut. To slice, move the log in a flinch, against a hefty, immobile knife. To rotary cut, place in a lathe and revolve against an immobile knife that extends its length. Dry, trim and match the
plies or layers. Apply a thin layer of glue to each ply. Lay-up the layers. The grain in each layer should be opposite to the adjacent ply. Squeeze together the plies using a giant hydraulic press, applying heat and pressure. Finish by drying, trimming and sanding.
Market Analysis
The demand for Adhhensive Ply wood is very high especially in Carpentry and Construction industry. The key players in this industry include; Nile ply, Budongo Saw Mills, among others.
Capital Investment Requirements (US$)

Capital investment item

Units

Qty

Unit cost

Amount

Steam Jacketed kettle

No.

1

1,800

1,800

Condenser

No.

1

3,894

3,894

Receiving Tank (30 HP)

No.

1

21,500

21,500

Vacuum pump

No.

1

2,500

2,500

Boiler

No.

1

1,000.00

1,000

Total cost on machinery

30,694




Production and Operating costs (US$)

Cost
Item

Units

Unit
cost/
day

Qty
day

Pdn
cost
/day

Pdn cost/
month

Pdn
cost/yr

Soft
wood

mtrs

3

500

1,250

32,500

390,000

Glue

ltrs

6

70

420

10,920

131,040

Ply

mtrs

7.5

500

3,750

97,500

1,170,000

Sub-total

1,070

5,420

140,920

1,691,040



General costs(overheads)







Utilities(water and power)

150

1,800





Labour

750

9,000





Rent

250

3,000





Miscellaneous costs

1,000

12,000





Distribution costs

520

6,240





Deprectiation(Asset write off)Expenses)

639

7,674





Sub -total

3,309

39,714





Total Operating Costs

144,229

1,730,754





Project product costs and price structures in US $

Item

Qty
/ day

Qty/yr

Unit
Cost

Pdncost
/yr

Unit
Price

Total
Revenue

Plywo
od

300

93,600

18.5

1,730,754

20

1,872,000

Profitability Analysis (US$)

Profitability Item

Per
day

Per
month

Per Year

Revenue

6,000

156,000

1,872,000

Less production and operating Costs

5,547

144,229

1,730,754

Profit

453

11,771

141,247

Source of Supply of Rawmaterials and Equipments
Equipments and
Rawmaterials can be obtained from the local market.
Incentives
Government through National Forestry Authority has embarked on Conservation of Forests and planting of various species of trees.