MAKING ALUMINIUM POWDER

• Manufacturing
• Chemicals and fertilizers

Introduction Aluminium powder is a fine granular powder made from aluminium which has several
applications and is used in the manufacturing of slurry explosives, detonators for specialized applications such as rails, crackers, sparkles and other pyrotechnic products. The envisaged project is for setting up
of a plant to make this powder. The project cost is US $ 29,563 with production capacity of 300,000 kgs per annum collecting estimated revenues US $ 44,998 per year.
Production Process
Aluminium metal is melted in a furnace with the temperature maintained around 7200-7600C. By inducing an air jet in the molten aluminium, small particles of atomized aluminium are produced. A
jet of hot air under pressure is passed through annular opening, near the top, drawn by suction through orifice. This leads to the formation of small particles of aluminium. These particles are drawn by
suction, through a collecting duct placed above the nozzle, and finally get into a cyclone collecting system. The process of sieving segregates different sizes of aluminium powder. The envisaged plant
would have a minimum plant capacity of 300 tonnes per annum. This is on the basis of 300 working days and single 8-hour daily work shifts.
Market Analysis
Production of aluminium powders of various grades and products, such as aluminium paste is not well established in the country. The aluminium powder industry is still of a relatively small size. With the
introduction of a plant to make military hardware, the market for aluminium powder is bound to increase. The major key players include; Roofings Uganda Limited, TEMBO (U) Ltd, Deals Uganda Ltd, Alcoh (U) Ltd, among others.
Capital Investment Requirement in US $

Item	Units	Qty	Price	Total cost
oil fired furnace	No	1	1,750	1,750
Ball mill	No	1	500	500
Thermo compressor	No	1	600	600
Hot air chamber	No	1	700	700
Powder collecting duct complete section	No	1	1,250	1,250
Water cooling pump	No	1	750	750
Total cost of tools & Equipment	5550

Production and Operating costs in US $
(a) Direct material, supplies and cost

Cost Item	Units	Unit Cost		Qty/day	Pdn cost/day	Pdn cost/mth	Pdn cost/yr
Direct Costs
Aluminium metal	kgs	0.125		32.05	4.0	104	1,250
Mineral spirit	ltrs	52.5		0.10	5.0	131	1,575
Coating material	kgs	7		1.60	11.2	292	3,500
Packaging material	ltrs	0.5		1.60	0.8	21	250
Sub-total	21	547.92		6,575
General Costs (Overheads)
Labour	350	4,200
Selling & distribution	200	2,400
Utilities (Water, power)	500	6,000
Administration	250	3,000
			Rent
Miscellaneous expenses
Depreciation
Sub-total
Total Operating Costs

 

1. Production costs assumed are for312 days per year with daily capacity of 961 kgs
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include: materials, supplies and other costs directly incurred to produce the product.
4. Currency used is US Dollars.
Project product cost and Price Structure in US $

Item	Qty /day	Qty /yr	Unit Cost	Pdn cost/yr	Unit price	Total rev
Aluminum Powder	961.500	299,988	0.10	29,563	0.15	44,998

Profitability Analysis in US $

Profitability Item	Per day	Per month	Per year
Revenue	144	3,750	44,998
Less: Production and operating costs	95	2,464	29,563
Profit	49	1,286	15,436

Source of Supply of Rawmaterials
Aluminium is imported from Japan and Dubai which is further processed in Powder form.
incentive:
Startup costs 25% granted on actual cost over the first four years in four equal installments. Initial allowance granted in the first year of production while 75% granted on the cost base of plant and machinery for industries located elsewhere in the country.