Introduction
This business profile aims at setting up a plant that manufactures plastic bottle caps. Bottle caps, or closures, are used to seal the openings of bottles of many types. They can be small circular pieces of metal, usually steel, with plastic backings, and for plastic bottles a plastic cap is used instead. A bottle cap is typically colorfully decorated with the logo of the brand of beverage.
Production Process
To make plastic bottle caps, chemists and chemical engineers must do the following on an industrial scale:
| • | Prepare raw materials and monomers |
|---|---|
| • | Carry out polymerization reactions |
| • | Process the polymers into final polymer resins |
| • | Produce finished products. |
Production Capacity
Basing on the demand for bottle caps, this plant will be capable of producing 1tonn of bottle caps per day totaling to 26 tonnes per month.
Tools and Equipment in US $
| • Heater/Melting Machine | • Injection machine |
| • Molding machine | • Weighing balance |
| • Plastics crushing machine | • Raw Materials |
| • Recycled plastics | |
| • Ethylene and propylene come from crude oil | |
| • Plasticizers, dyes and flame-retardant chemicals | |
Requirements Market Analysis& Projected Demand
The demand for plastic bottle caps is very high in Drinks and Beverage Company & Health and pharmaceuticals industry. Plastic bottles may also be exported to neighboring countries such as: Rwanda, Burundi and Congo.
Capital Investment Requirements in US$
| Capital Investment Item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Truck | No. | 1 | 12,000 | 12,000 |
| Injection Machine | No. | 1 | 3,100 | 3,100 |
| Molding Machine | No. | 1 | 5,250 | 5,250 |
| Plastic Melting Machine | 1 | 1,250 | 1,250 | |
| No. | ||||
| Weighing Scale | No. | 1 | 110 | 110 |
| Furniture | No. | 3 | 33 | 99 |
| Total Amount | 21,809 |
Operating Costs in US$ General Costs (Over heads)
| Item | Units | @ $ | Qty/ day | Prod. Cost/ day$ | Prod. Cost/ mth$ | Prod. Cost/ Year[1]$ |
|---|---|---|---|---|---|---|
| Direct Costs | ||||||
| Ethylene Oxide | Litres | 6 | 100 | 600 | 15,600 | 187,200 |
| Compounded Plastics | Kgs | 0.6 | 1,000 | 650 | 16,900 | 202,800 |
| Sub total | 32,500 | 390,000 | ||||
| Rent | 400 | 4,800 |
|---|---|---|
| Packaging Material | 100 | 1,200 |
| Labour | 600 | 7,200 |
| Utilities (Power & Water) | 1,000 | 12,000 |
| Repair & Servicing | 500 | 6,000 |
| Fuel | 500 | 6,000 |
| Depreciation (Asset write off) Expenses | 454 | 5,452 |
| Sub – total | 3,554 | 42,652 |
| Total Operating Costs | 36,054 | 432,652 |
Project Product Costs & Price Structure
| Item | Qty/day-ton | Qty/ yr | @$ | Pdn Cost/ yr$ | UPx | T/rev |
|---|---|---|---|---|---|---|
| Caps | 1 | 312 | 1,387 | 432,652 | 1,600 | 499,200 |
Profitability Analysis in US$
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 1,600 | 41,600 | 499,200 |
| Less: Production & Operating Costs | 1387 | 36,054 | |
| 432,652 | |||
| Profit | 213 | 5,546 | 66,548 |
Sources of Supply of Raw Materials The major raw material, plastics are purchased from local individuals at a relatively cheaper Price all over the country and chemicals used are readily available from chemical dealing industries & shops.
