Wood processing manufacture

Project description

Organization of the sawmill at the site in the village of Rugozero of the Muezersky region of Karelia

Geographical location:

to the Finnish border (via Kostomuksha) – 170 km

to Petrozavodsk 450 km

to SPb – 750 km.

We plan in the processing of raw materials: small sawlogs (pine) and balance (pine) length 3 meter, without demand from large consumers (pulp and paper mill in Segezha, Kondopoga).

The cost of raw materials for January 2015: 800-1200 RUB/cubic meter.

The potential increase in the cost of raw materials in 2015, we estimate no more than 1500 rubles/cubic m (growth is restricted by weak demand for such raw materials).

This raw material has a limited demand from pulp producers (purchased pulpwood has length 4, 8-6, m 0), the demand from sawmills also focuses on 6-meter logs with a diameter of 18 cm, as demand from builders are also formed in timber with a length of either 4 0 and 6 0 meters.

Why we plan to capitalize on this raw material, from which the majority of processors refuse.

We depart from the standard scheme adopted by the majority of small producers – cut on the standard specification of 50 and 25 mm boards with a length of 6, 0 (4, 0) meters and selling them fresh to intermediaries in areas of major consumption (Moscow and Moscow region, St. PETERSBURG).

We plan to exclude the mediator through the production of timber for processing into specific products (paneling, furniture Board). For siding, length 3.0 meter is the most popular among buyers.

The planned production capacity – 1000 cubic meters of lumber per month in a single shift work, confirmed by the volumes of raw materials.

Strong economic side of the project

For production in one shift mode 1000-ti cubic meters of lumber, we need not more than 10 people main and 6 support staff. Costs for labor will not exceed 1000 rbl./cubic m (with taxes).

Raw material component per cubic meter of the produced lumber will not exceed 2 400 RUB/cubic m. at the beginning of the project and 3 000 RUB./cubic meter (assuming growth in 2015 the price of raw materials – pessimistic forecast).

Planned cost (EXW Moscow) – 4400-5000 RUB./cubic meter of lumber (raw material component, costs for wages, operating costs (electricity, fuel, consumables).

The cost of manufactured lumber price on which it is possible to implement it on the spot (6.500 -7.000 RUB) already allows you to get profit up to 2, 0-2, 5 million RUB/month.

But the main interest is to sell not raw timber, and to Refine to the final product.

In our case, it's processing on third party capacity (as an option in Petrozavodsk, Sortavala, SPb) of our lumber to paneling and furniture Board.

The choice of the two products is associated with the possibility of 100% recycling of the resulting lumber: lumber with a cross-section 47х100 is the production of lining, side lumber 22/25 mm thickness and 47 mm Board widths 125 and over – production of laminated Board thickness 18 and 40 mm.

The cost of lining will be 10, 4-11, 1 thousand rubles for a conditional cubic meters of all grades on the Playground in SPb, including:

— 600 — 800 rbl. – transport costs for delivery to the processor and from there to St. Petersburg.

— 2000-2200 RUB/cubic meters payment for services on drying and planing of lumber

Sales price: from 14.5 thousand rubles (grade C) up to 21 thousand rubles (grade a).

The average sales price in 18 thousand. processing brings to 5, 4 thousand cubic meters of lumber (compare with selling raw lumber — 2000-2500 RUB./cubic meter).

Services for the production of furniture panels will be 3, 0-3, 5 thousand RUB./cubic meter, the cost of the shield will be (taking into account material consumption with K = 1, 5) 13-14 thousand rbl./cubic m.

The planned sale price from 16.0 thousand rubles. for grade b/C (10-15 % volume), 30, 0 thousand rubles. for grade A/A.

With an average sale price of 22 thousand rbl./cubic m. the profit in terms of 1 cubic meter of lumber transferred for processing will be 5, 3 thousand RUB./cubic meter.

Summary:

The project has a positive profitability at all stages: production of raw timber, and on its completion in a finished product (molded Board) on third party capacity.

The estimated profit before tax would amount to 5 to 33 million rubles (the volume of production of 1,000 cubic meters of lumber).

The direction of the processing takes into account the peculiarities of the raw material (length, species composition) and allows you to produce lumber, having a 100% proof of demand from potential buyers.

Through the use of efficient equipment minimizes the risks associated with the presence/absence of qualified personnel.

From experience of previous seasons you can expect some very rapid growth of prices on raw material in comparison with the growth of prices for finished products, but from the practice of prices for finished products even with the three-month delay but its back.

Sales of lining do not have strongly pronounced seasonal nature, molded of high grades (especially Northern wood) has a constant demand regardless of the season.