MAKING PLASTIC BOTTLE CAPS
Introduction
This business profile aims at setting up a plant that manufactures plastic bottle caps. Bottle caps, or closures, are used to seal the openings of bottles of many types. They can be small circular pieces of metal, usually steel, with plastic backings, and for plastic bottles a plastic cap is used instead. A bottle cap is typically colorfully decorated with the logo of the brand of beverage.
Production Technology
The production of plastic bottle caps is done through rotational molding whereby the resin pellets are heated and cooled in a mold that can be rotated in three dimensions. The rotation evenly distributes the plastic along the walls of the mold. This technique may also be used to make large, hollow plastic items (toys, furniture, sporting equipment, septic tanks, garbage cans and kayaks).
Production Process
To make plastic bottle caps, chemists
and chemical engineers must do the following on an industrial scale:
5. Prepare raw materials and monomers
6. Carry out polymerization reactions
7. Process the polymers into final polymer resins
8. Produce finished products.
Production Capacity
Basing on the demand for bottle caps, this plant will be capable of producing 1tonn of bottle caps per day totaling to 26 tones per month.
Tools and Equipment in US $
1. Heater/Melting Machine
2. Molding machine
3. Plastics crushing machine
4. Injection machine
5. Weighing balance
Raw Materials
• Recycled plastics
• Ethylene and propylene come from crude oil
• Plasticizers, dyes and flame-retardant chemicals
Scale of Investment, Capital Investment
Requirements
Market Analysis & Projected Demand
The demand for plastic bottle caps is
very high in Drinks and Beverage Company & Health and pharmaceuticals
industry. Plastic bottles may also be exported to neighboring countries such
as:
Rwanda, Burundi and Congo. However, plastic Bottle Caps are imported from
Kenya.
Project Costs
The project cost to establish this
plant is shown below:
1. Capital Investment Requirements in
US$
|
Item |
Units |
Qty |
Unit |
Amount |
|
Truck |
No. |
1 |
10,000 |
10,000 |
|
Injection Machine |
No. |
1 |
3,000 |
3,000 |
|
Molding Machine |
No. |
1 |
5,000 |
5,000 |
|
Plastic Melting Machine |
No. |
1 |
1,000 |
1,000 |
|
Weighing Scale |
No. |
1 |
100 |
100 |
|
Furniture |
No. |
3 |
30 |
90 |
|
Total Amount |
19,190 |
2. Operating Costs in US$
|
Item |
Units |
Unit |
Qty/d |
Prod. |
Prod. |
Prod. |
|
Direct Costs |
||||||
|
Ethylene |
Litres |
5 |
100 |
500 |
13,000 |
156,000 |
|
Compounded |
Kgs |
0.5 |
1,000 |
500 |
13,000 |
156,000 |
|
Sub total |
1,000 |
26,000 |
312,000 |
|||
|
General Costs (Over heads) |
||||||
|
Rent |
400 |
4,800 |
||||
|
Packaging Material |
100 |
1,200 |
||||
|
Labour |
600 |
7,200 |
||||
|
Utilities (Power & Water) |
1,000 |
12,000 |
||||
|
Repair & Servicing |
500 |
6,000 |
||||
|
Fuel |
500 |
6,000 |
||||
|
Depreciation (Asset write off) Expenses |
400 |
4,798 |
||||
|
Sub - total |
3,500 |
41,998 |
||||
|
Total Operating Costs |
29,500 |
353,998 |
3. Project Product Costs & Price Structure in US$
|
Item |
Qty/d |
Qty/y |
Unit |
Prod |
Unit |
T/rev |
|
Caps |
1 |
312 |
1,134.6 |
353,998 |
1,500 |
468,000 |
4. Profitability Analysis in US$
|
Item |
Per day |
Per |
Per Year |
|
Revenue |
1,500 |
39,000 |
468,000 |
|
Less: Production & |
1,000 |
29,500 |
353,998 |
|
Profit |
500 |
9,500 |
114,003 |