MAKING PLASTIC ROPES

Introduction

This business profile suggests setting up a plant that manufactures
plastic Ropes. A rope is a bundle of flexible fibers twisted or braided
together to increase its overall length and tensile strength. Ropes may
be used for hunting, carrying, lifting, and climbing dates back to
prehistoric times.


Production technology

Fibers and filaments are first formed into yarn. The yarn is then
twisted, braided, or plaited according to the type of rope being made.
The diameter of the rope is determined by the diameter of the yarn,
the number of yarns per strand, and the number of strands or braids in
the finished rope.


Production Process

To make plastic ropes, chemists and chemical engineers must do the
following on an industrial scale:
1. Prepare raw materials and monomers
2. Carry out polymerization reactions
3. Process the polymers into final polymer resins.
4. Produce finished products.


Production Capacity

Basing on the demand for plastic ropes, this plant will produce 1,000
ropes per day totaling to 26,000 ropes per month.


Raw Materials
Ropes will be made from plastics and a combination of chemicals to
give them strength, which have been processed to allow them to be
easily formed and extruded into long filaments.


Market Analysis

The demand for plastic ropes is very high especially in the fishing,
building and construction, & farming industry. Plastic ropes may also
be exported to neighboring countries. However, plastic ropes are
imported from Kenya.


Project Costs

The project costs to establish this plant are shown in tables below:
1. Capital Investment Requirements in US$

 Item

Units

Qty

Unit Cost

Amount

Delivery Van

No.

1

8,000

8,000

Molding Machine

No.

1

3,000

3,000

Crushing Machine

No.

1

1,000

1,000

Injection Machine

No.

1

1,000

1,000

Boiler

No.

1

1,000

1,000

Furniture

No.

3

30

90

Weighing Scale

No.

1

100

100

Total Amount

14,190




 

2. Operating Costs in US$

Item

Units

Unit
Cost

Qty/
day

Prod.
Cost/
day

Prod.
Cost/
month

Prod.
Cost/ Year

 

Direct Costs







 

Compounded Plastics

Kgs

0.2

3000

600

15,600

187,200

Chemicals

Litres

1.5

300

450

11,700

140,400

Sub total

1,050

27,300

327,600




General Costs (Over heads)







Rent

500

6,000





Labour

600

7,200





Utilities (Power)

800

9,600





Repair & Servicing

500

6,000





Fuel

500

6,000





Depreciation(Asset write off) Expenses

295.6

3,548





Sub - total

3,195.6

38,348





Total Operating Costs

30,495.6

365,948

















 

3. Project Product & Price Structure in US$

Item

Qty/day

Qty/yr

Unit
Cost$

Prod
Cost/yr$

Unit
price

T/rev

Ropes

1000

312,000

1.3

404,970

1.5

468,000

 

4. Profitability Analysis in US$

 Item

Per day

Per
Month

Per Year

Revenue

1,500

39,000

468,000

Less: Production & Operating Costs

1,050

30.495.6

365.948

Profit

450

8,504.4

102,052