Introduction
This profile envisages the setting up of a plant that manufactures Teflon products. For this case, this profile will look at Teflon frying pans. Teflon is a tough, waxy, nonflammable organic compound with a slippery surface, attacked by very few chemicals and stable over a wide temperature range. Its qualities make it useful in gaskets, bearings, container and pipe linings, electrical insulation, parts for valves and pumps used for corrosive fluids and protective nonstick coatings on cooking utensils, saw blades and other articles.
Production capacity
This plant will be established on the premise of producing 200 sets (6 pieces each of Teflon frying pans per day giving rise to 6,000 sets of Teflon frying pans per month.
Production Technology/Process
One of the most common and visible uses of PTFE is coating for nonstick pots and pans. The pan must be made of aluminum or an aluminum alloy. The pan surface has to be specially prepared to receive the PTFE. First, the pan is washed with detergent and rinsed with water, to remove all grease. Then the pan is dipped in a warm bath of hydrochloric acid in a process called etching. Etching roughens the surface of the metal. Then the pan is rinsed with water and dipped again in nitric acid. Finally, it is washed again with deionized water and thoroughly dried.
The liquid coating may be sprayed or rolled on. The coating is usually applied in several layers, and may begin with a primer. The exact makeup of the primer is a proprietary secret held by the manufacturers. After the primer is applied, the pan is dried for a few minutes, usually in a convection oven. Then the next two layers are applied, without a drying period in between. After all the coating is applied, the pan is dried in an oven and then sintered.
Raw Materials:
Teflon frying pans are made from Teflon (PTFE) – “grains” or “Liquid” which is sprayed on the surface to form a more heat resistant layer.
Equipment & Materials
- Heater/Convection Oven, Spray machine
- Scale of Investment, Capital Investment Requirements
The total Capital investment cost to start this project is
Market Analysis:
The demand for Teflon coated frying pans is spread all over the country especially in schools, hotels, & individual households and may also be exported.
Project Costs
Fixed Capital Requirements in US$
| Description | Amount (USD) | |
|---|---|---|
| Equipment | 2200 | |
| Total Amount | 2200 |
NB: The cost of land for factory building is estimated at US$ 20,000
Working Capital: (Monthly) in US$
| Description | Cost$ | Amount (USD) |
|---|---|---|
| Raw materials (aluminum pans) | 20/set | 120,000 |
| Teflon | 150/ltr | 110,000 |
| Labour (4 people) | 370@ | 1,480 |
| Utilities (Power &Water) | 1,250 | |
| Total | 232,730 |
Project Monthly Revenue:
The estimated daily sales and revenue are shown in the table below:
| Description | Sales | Price $ / set | Revenue$ |
|---|---|---|---|
| Out put | 6,000 | 50 | 300,000 |
| W. Capital | 232,730 | ||
| Gross Profit | 67,270 |
Sources of Supply of Raw Materials:
Teflon in form of Liquid or Grain is readily available in the Ugandan chemicals industry.
Government Facilities and Incentives Available:
The Government has adopted initiatives to support industrialization through: tax exemptions, basic infrastructure, Grants, and liberalized market.
