Introduction
This profile envisages the establishment of a plant that will make Rubber Cement. Rubber cement is an adhesive made from elastic polymers mixed in a solvent such as acetone and hexane to keep them fluid enough to be used. This makes it part of the class of drying adhesives: as the solvents quickly evaporate, the “rubber” portion remains behind, forming a strong yet flexible bond. Often a small percentage of alcohol is added to the mix.
The total Capital Investment cost to start this project is estimated at USD13,610. The predicted annual revenue is USD 673,920, with a net profit of 23% and a payback of 2 months.
Production Process
The process to make rubber cement is relatively simple. After the rubber is broken down into smaller pieces, it is mixed with the hexane-or heptane-based solvent and then various sizes of containers are filled with the liquid. Most equipment is automated.
Raw Materials
Rubber cement is an opaque liquid that contains pulverized natural or synthetic rubber and a solvent based on hexane or heptanes. Grades of rubber cement may contain 70-90% heptanes or hexane and 1-15% isopropyl alcohol (isopropanol) or ethyl alcohol (ethanol). The rubber is received in the form of large blocks or slabs, typically 100 lb (45 kg) in size.
Capital Investment Requirements in US$
| Capital Investment Item | Units | Qty | @$ | Amount $ |
|---|---|---|---|---|
| Truck | No. | 1 | 8,000 | 8,000 |
| Grinder | No. | 1 | 3,100 | 3,100 |
| Mixer | No. | 1 | 750 | 750 |
| Tanks | No. | 5 | 100 | 500 |
| Furniture | No. | 2 | 50 | 100 |
| Weighing Scale | No. | 1 | 160 | 160 |
| Packaging Machine | No. | 1 | 1,000 | 1,000 |
| Total Amount | 13,610 |
Operating Costs in US$ General Costs (Over heads)
| Item | Units | @ $ | Qty/ day | Prod. Cost/ day$ | Prod. Cost/ month$ | Prod. Cost/ Year[1]$ |
| Direct Costs | ||||||
| Rubber | Kgs | 0.77 | 500 | 385 | 10,010 | 120,120 |
| Heptanes | Ltrs | 45 | 25 | 1125 | 29,250 | 351,000 |
| Ethanol | Ltrs | 0.48 | 75 | 36 | 936 | 11,232 |
| Sub total | 1,546 | 40,196 | 482,352 | |||
| Rent | 500 | 6,000 |
|---|---|---|
| Labour | 500 | 6,000 |
| Utilities (Power & Water) | 800 | 9,600 |
| Repair & Maintenance | 300 | 3,600 |
| Packaging Materials | 200 | 2,400 |
| Fuel | 500 | 6,000 |
| Depreciation(Asset write off) Expenses | 284 | 3,403 |
| Sub – total | 3,084 | 37,003 |
| Total Operating Costs | 43,280 | 519,355 |
Project Product Costs & Price Structure
| Item | Qty/ dayLtrs | Qty/yr | @$ | Pdn Cost/ yr$ | UPx | T/rev |
|---|---|---|---|---|---|---|
| Rubber Cement | 600 | 187,200 | 2.77 | 519,355 | 3.6 | 673,920 |
Profitability Analysis
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 2,160 | 56,160 | 673,920 |
| Less: Production & Operating Costs | 1,665 | 43,280 | 519,355 |
| Profit | 495 | 12,880 | 154,565 |
Sources of Supply of Raw Materials
Raw materials may be imported from Liberia/West African Countries.
Government Facilities and Incentives Available:
The Government is willing to support industrialization through; Tax exemptions, Basic infrastructure, Grants, long term Loans and liberalized market.
