BUSINESS IDEA FOR RECYCLING PLASTICS

 

Introduction

The plan is to build a facility for recycling plastics. The basis of this business concept is the production of 36,400 plastic products per month, or 436,800 products annually. The potential revenue is expected to be US$29,640 per month, or US$355,680 per year. The project will set you back $395,700.

Production Process

In order to produce the requisite sizes of granules for this project, waste plastic must first be cleaned, sorted by grade, chopped into small pieces, and either extruded or crushed. The shattered plastic is combined with chemicals to restore its authenticity. After melting the mixture in a boiler, the mixture is then transferred to an injection machine, which transfers it to a molding machine. After that, the finished item is taken out of the molds for trimming and packaging.

Market Analysis

Across the nation, there is a rising demand for things made of plastic. Additionally, plastic goods are exported to the neighboring nations. Other large businesses may purchase raw materials in the form of crushed plastic products.

Production costs assumed 312 days per year with a daily capacity of 500 Sealing Wax

Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets

Direct costs include materials, supplies and other costs that directly go into production of the product

Project product costs and price structure in US$

Source of Supply of Raw Materials and Equipment

Equipment and raw materials can be obtained locally. Everywhere in the nation, locals can buy plastics for a significantly lower cost.

Government Incentives Available

All governments promote plastic recycling in an effort to protect the environment. Additionally, it has promoted the growth of small-scale companies in an effort to reduce poverty and generate jobs.