BUSINESS - PLAN. "Recycling of polymers waste and polymers into granules ZIELONA GÓRA, POLAND
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1 BUSINESS - PLAN "Recycling of polymers waste and polymers into granules ZIELONA GÓRA, POLAND 2014
2 Content Resume General information Information about the company The point of the project The aim of the project The strategy of the project State of the works concerning the recycling of polymers. Technology of the Project.. The development of plastic processing Raw Materials Technology of polymer processing Equipment for recycling of polymeric materials Production The field of products usage The need for investment Risks Competition Prices Financial evaluation of the project Stages of the project Conclusion
3 1. Summary 1.1. General information Creation Date: 16/10/ Information about the enterprise Field of activity and branch: Recycling and waste management. Waste turnover. Organizational and legal form of the company: Private enterprise. Limited Liability Company. Main products or services: Granules LDPE, NDPE and PP. Collection, transportation, storage and processing of waste. Cars and trucks service and repair oil and filter change and tires replacement. Cars and trucks hand washing. Repair and restoration of vintage cars. Products, which is the subject of the business plan: Granules LDPE, NDPE and PP. The main consumers: Companies that produce greenhouse film, agricultural film, packaging containers, plastic bags, plastic products, products for the construction industry (plastic pipes, hoses, panels, etc.).
4 2. The point of the project 2.1. Aim of the project The purpose of the project: The destruction of hazardous waste and obtaining a result of these new products and recycling of the plastics. The design capacity for processed raw material up to 9000 tons per year. Sales of products is expected in Poland and in the EU. Annual net profit is expected in the amount of 1.5 million Euro. The essence of the project: Purchase of equipment and construction of a plant for recycling of polymers (plastics, plastic and plastic packaging, films and plastics) for LDPE granules, NDPE, PP and their products The strategy of the project The problem of recycling of polymers and their products is of great ecological and economic importance for all developed countries. A nonrenewable natural oil feedstocks dictates the need for secondary resources as efficiently as possible, instead of mountains of garbage we could receive for our region a new industry - commercial recycling. On the other hand polymers waste and plastic products are valuable polymer raw materials - with virtually no loss in volume and weight of the resulting secondary granules from which all kinds of products for the agriculture, construction, transport and human activity can be produced. Investing in recycling polymers is advantageous due to the implementation of the resulting granules and pellets of manufacturing various products - film, packaging materials, products for construction and transport. 2.3 State of the works concerning the recycling of polymers The problem of processing and use of polymers waste is of great economic and ecological importance. These wastes are a source of environmental pollution, having a long-term nature. Firstly, plastics waste are not subjected to biodegradation. Secondly, they are flammable, although they are not easily flammable materials. Existing methods for processing plastic waste can be divided into two main groups: physico-chemical mechanical All mechanical processing methods for recycling of the plastic waste in the enclosed crushing various plastic substances, such as undrawn or partially elongated fibers substandard waste tape casting. With such processing crumb and powder materials are formed which are subjected to cast
5 molding. This method is based on mechanical grinding, does not change the physico-chemical properties of plastics and their structure. Recycling of the plastic by physico-chemical methods can be performed in the following ways: 1. Method of destruction of plastics waste. This technology allows the oligomers and monomers to be used for preparing fibers and films. 2. The method of re-melting. This method of the plastic waste recycling allows to manufacture granules by means of injection molding or extrusion. 3. The method of reprecipitation from solutions. This method of processing allows to manufacture composite materials and receive powders used for polymer coating. 4. The method of chemical modification. This method allows to produce materials with new physical and chemical properties. The most common of all of the above methods of processing plastics waste is re-melting method or as it is called, granulating or tabletting method The technology of the project Today, there are two main methods of granulation of plastics waste: cold granulation hot granulation During hot granulation molten material is forced through the round holes of the working surface. The resulting material has the form of plastic tape. Then the tapes are cut in the form of a stationary hot rotating knives into small granules or tablets. Thereafter, the process of cooling the air flow of the granules is obtained. During cold granulation method the polymer is extruded through a perforated plate, resulting in a plastic strip. These tapes are immediately cooled. After cooling there is complete cutting of ribbons made into pellets by means of rotating knives. To prevent heating of the material in the cutting process liquid nitrogen can be used Development of plastics recycling Today the plant for plastics processing is quite a profitable business, as global demand for recycled plastic, according to experts of the company The Freedonia Group, on average will grow annually by 6.5%. Moreover, according to their own projections, by 2016 the market will be recycling plastics over 1.6 billion tons despite the fact that volume of processed plastics in the world does not exceed 7%. Experts explain such growth of prospects in this direction by several key factors. Sufficiently important role is played here by the desire of producers of goods and packaging to be environmentally friendly. Practical aspects are important here too: today there is a development of technologies of municipal solid waste sorting and recycling, which increases the amount of plastics waste that can be recycled and gives the possibility to get high-quality material. Experts also predict the improvement of the infrastructure for the collection of household waste, which would increase the level of recycling plastics.
6 Thus, experts believe that recycling of plastic waste in the nearest future may become even more cost-effective form of business than it is now. And this forecast, primarily calculated in the Western countries where the processing of plastics has gone far ahead Raw Materials Products made of polymers today are an integral part of our daily life, however, with the growth in production of such products, it is quite natural that the amount of solid waste is also increasing. Today plastic waste accounts for about twelve percent of the total household waste, and their number is constantly growing. And of course,the recycling of polymers today is one of the most acute problems, because without it humanity can literally drown in the mountains of garbage. Recycling of polymers today is not only a problem, but also a very promising line of business, because of the seemingly worthless materials - household waste, you can get a lot of nutrients. In addition, the technology of recycling (MSW) is a much more secure method of recycling plastic waste than traditional combustion, which causes considerable damage to the environment.
7 2.7. The Technology of polymer processing For converting plastic waste into raw material suitable for further processing into products, it must be pre-treated. Selection pretreatment process depends primarily on the degree of contamination of the waste and their source. Thus, homogeneous waste products are normally processed on the spot where they appear, as in this case only a small pre-treatment is required - just shredding and granulating. However, in the form of waste products that are no more used, a much more thorough preparation is required. Well, pretreatment of the polymer waste typically comprises the following steps: 1. Rough sorting and identification of waste of mixed type. 2. Shredding of waste. 3. Separation of mixed waste. 4. Washing of waste. 5. Drying. 6. Granulation. Pre-sorting provides a rough division of plastics waste according to various criteria: type of plastic material, colour, shape and size. Pre-sorting is carried out, usually by hand on conveyor belts or table. Also, the technology of polymer processing implies that while sorting the waste different alien things are removed. Obsolete and got into the plant for processing plastics waste in which the content of impurities does not exceed 5% come at the sorting unit, where all other random inclusions are removed. The waste that passed the sorting out are crushed in the cutter mill to obtain a loose mass with a particle size of mm. Milling - one of the most important stages of the preparation of waste for processing, as it defines the flowability, particle size and bulk density of the resulting product. A regulation of the degree of grinding enables to increase the quality of the material due to the averaging of its technological characteristics in this way simplifying the processing of polymers. Later on the ground polymer waste gets into the washer for washing. The washing is carried out in several stages by means of using special detergent mixtures. Wrung centrifuge polymer mass with a moisture content of 10 to 15%, is fed to final dehydration into the dryer where it is dried to a moisture content of 0.2%. Afterwards this mass gets in to the granulator, where there is the sealing of material, thanks to which the further processing gets easier and the characteristics of secondary raw materials become average. The final result of granulating is to get material which can process the standard polymer processing equipment.
8 2.8. Equipment for recycling of polymeric materials Recycling of polymers is the case quite difficult and requires specific equipment: Lines for washing plastic waste. Crushers for polymers. Extruders for recycling. Belt conveyors. Shredders. Agglomerators. Lines of granulation, granulators. Sieveexchangers. Mixers and dispensers. There are many plants where separate types of equipment are manufactured as well as ready lines for washing and granulation. They differ mainly by two parameters - the cost of equipment and the quality of the equipment Production In the result of waste processing we get plastic granules of 2 to 9 mm size of various colors. The color of granules depends on the color of raw materials - a colorless, white, blue, black and mix (mixture of raw materials of different colors). Due to the customer wish one can give to the granules different color dyes to obtain colored granules. 3. The field of using the production
9 Recycled plastic can be used for various purposes. Well, it is used for manufacturing of synthetic yarns, which can be used further on for making clothes, carpets, films, and other articles. Approximately two-thirds of European secondary plastics is used for the production of polyester, which is used as insulation of sportswear, sleeping bags and filler for soft toys. Also from recycled plastics packaging can be produced. From plastic waste mixed with mineral fillers (ash, sand) polymer concrete is produced, which is very strong and durable material, having a variety of applications in the construction industry. In short, there are a lot of places where you can use recycled plastic. 4. The need for investment Investment funds are used for the following purposes: 1. Purchase the a land area of 2 ha for the location of enterprise. 2. Construction of prefabricated hangar area of 1200 square meters; 3. Production of the washing line with the capacity 1 ton of raw material per hour; 4. Production of the granulation line with the capacity 0.5 tons per hour - 2 pcs.; 5. Purchase of electric power and power transformer (1.5 MW); 6. Construction of cleaning facilities for the use of water in a closed loop; 7. Purchase of additional equipment; 8. Construction of the office building. 9. Construction of the infrastructure. Investment funds in the amount of 3,500,000 Euros needed for the organization of production base and are planned for: - Acquisition of a 2-hectare place for the location of production - 150,000 Euro. - Place preparation, construction of prefabricated hangar - 800,000 Euro. - Production of the cleaning and granulation lines Euro.
10 - Purchase of electric power of 1.5 MW Euro. - Purchase of additional equipment Euro. - Expenses in connection with the construction and start-up of production - 250,000 Euro. Total: Euro Method of the repatriation of profits: Return of investment will be carried out in cash. 5. Risks In the course of a full production cycle, starting from the date of manufacture of the equipment and supplies of raw materials and ending with the realization of the finished product, there is a possibility of the following risks that may cause damage or loss: 1. Failure or delay in production of the equipment. The delay in the timing of the start of production. 2. Malfunctions of equipment work. 3. Failures in the supply of raw materials. 4. Overstocking of ready- made products due to difficulties in selling. 5. The increase in prices of raw materials by the suppliers of raw materials. 6. The changes in purchasing the products by proper segment of the market. In order to reduce or prevent the risk of losses expected to carry out the following activities expected to be carried out. 1. Scheduling of the equipment manufacturing, preparation of production facilities and commissioning. Observing the schedule. 2. The signing of long-term contracts with suppliers. Inclusion in the contract methods of the risks payment. 3. Identification of the weak points in the design of technological equipment, preparation of the information as for the statement of the already used details, making the stock of these details. 4. The manufacture or purchase of the redundant sets of already used parts of the equipment. 5. Continuous professional development of employees. 6. Search for more alternative channels of supply of raw materials. 7. Signing the preliminary agreements with buyers of ready-made products. 8. Scheduling delivery and tracking delivery dates. 9. Insurance of the storage. 10. Continuous monitoring of the state of the market products. 6. Competition On the territory of the Lubuskie province, there is one similar company of plastics waste recycling - Recycling EKO, which is our partner. There is a written agreement with the company EKO Recycling about common activity in this direction, a common search for raw materials and sales of ready-made products at agreed prices. There are no other competitors in the territory of the Lubuskie province. 7. Prices
11 From the 1st ton of plastics waste 700 to 900 kg of granules are made in accordance with the degree of contamination of the feedstock. Commodity prices depend on the degree of contamination and range from 150 to 300 Euros per tonne. Prices of granules depend on the quality and color and range from 650 to 750 Euros per tonne. 8. Financial evaluation of the project The line capacity of 20.0 tons of ready-made products per day at 3-shift work. The average monthly cost Euros including: 1. Salary of the workers: 8 people. / Shift x 4 = 32 people + 4 people = = 36 people x 700 Euro Euro 2. Electricity Euro 3. Transport and operating expenses Euro 4. The administration Euro 5. Raw materials 20 tons. X 30 days. X 200 Euro / ton Euro Total revenue: Euro 1. Granules: 500 tons x 6000 / t Euro Income: Euro Income tax 19% Euro PROFIT: Annual PROFIT: Euros x 12 months Euro Euro Payback period of investment funds is 4.8 years. 9. Stages of the project Stages, requiring investment: I. Order and manufacturing of the washing line and 2-lines of granulation, capacity of 24 tons per day, corresponding to current regulations, standards and regulations of the EU. Performance time - 7 months from getting the investment. II. Land acquisition, external networks, energy. Binding of the production line to the production site, agreement with a general designer. Performance time - 6 months from the date of receiving the investment. III. Construction of the plant and equipment installation. Commissioning works. Performance time - 9 months from the receiving of investment and project documents.
12 The total investment for the construction of the plant is Euros. Date of commissioning of the plant - 11 months. Payback period - within 2.5 years from the date of the start of the plant. 10. Conclusion This business plan is preliminary and aims to justify the economic, technical and environmental viability of the plant for processing plastics waste for getting investment in the construction of the plant and the development of design and technical documentation in the territory of Poland. Thus, the organizers of the project are willing to participate in realization of this project in other countries.
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