Introduction
Plywood is a common building material that is used to line roofs or as wall or floor paneling. It is also used in furniture manufacturing and it is made by gluing together an odd number of thin layers of wood. Plywood can be made from hardwood or softwood and this determines its use.The building and construction sector would thus form the biggest component of the market for plywood adhesive.The production capacity is 300 pieces per day and estimated revenue is approximated at US$2,152,800 per year, a with a net profit margin of 8% and payback period of 2 months.
- Remove the bark from the log and cut logs to the desired length
- steam-heat to soften the surface.
- Make the veneer. This can be done by slicing, or cutting.
- Apply a thin layer of glue to each ply. Lay-up the layers.
- The grain in each layer should be opposite to the adjacent ply.
- Squeeze together the plies using a giant hydraulic press, applying heat and pressure.finish by drying, trimming and sanding.
Capital Investment Requirements (US$)
| Capital investment item | Units | Qty | @ | Amount |
| Steam Jacketed kettle | No. | 1 | 18,490 | 18,490 |
| Condenser | No. | 1 | 3,900 | 3,900 |
| Receiving Tank (30 HP) | No. | 1 | 22,100 | 22,100 |
| Vacuum pump | No. | 1 | 2,700 | 2,700 |
| Boiler | No. | 1 | 1,300 | 1,300 |
| Total cost on machinery | 48,490 |
Production and Operating costs (US$)
| Cost Item | Units | @/ day | Qty day | Pdn cost /day | Pdn cost/ month | Pdn cost/ yr |
|---|---|---|---|---|---|---|
| Soft wood | mtrs | 3.2 | 500 | 1,600 | 41,600 | 499,200 |
| Glue | ltrs | 6.3 | 70 | 441 | 11,466 | 137,592 |
| Ply | mtrs | 8 | 500 | 4,000 | 104,000 | 1,248,000 |
| Sub-total | 1,070 | 6,041 | 157,066 | 1,884,792 |
General costs(overheads) Project product costs and Price structures
| Utilities(water and power) | 150 | 1,800 |
|---|---|---|
| Labour | 750 | 9,000 |
| Rent | 250 | 3,000 |
| Miscellaneous costs | 1,000 | 12,000 |
| Distribution costs | 520 | 6,240 |
| Depreciation(Asset write off)Expenses) | 1010 | 12,123 |
| Sub -total | 3,680 | 44,163 |
| Item | Qty / day | Qty/yr | @ | Pdncost /yr | UPx | TR |
| Plywood | 300 | 93,600 | 21 | 1,928,955 | 23 | 2,152,800 |
Profitability Analysis (US$)
| Profitability Item | Per day | Per month | Per Year |
|---|---|---|---|
| Revenue | 6,900 | 179,400 | 2,152,800 |
| Less production and operating Costs | 6,183 | 160,746 | 1,973,118 |
| Profit | 717 | 18,654 | 179,682 |
Raw materials
Sources of raw materials and equipments Raw materials like timber can be obtained from local market like Ms Tonet Ltd, Gayaza Road Kampala
