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 |
Qty/ |
Prod. |
Prod. |
Prod. |
|
||||
|
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 |
Prod |
Unit |
T/rev |
|
Ropes |
1000 |
312,000 |
1.3 |
404,970 |
1.5 |
468,000 |
4. Profitability Analysis in US$
|
Item |
Per day |
Per |
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 |