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


John Doe
John Doe

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Hi, jenny Loral
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