Production of birch veneer

Project description

PROJECT SUMMARY

The aim of the project: construction of the automated enterprise for deep processing of soft deciduous breeds of wood

These targets:

Required investment:

$5, 7 million (~390 000 thousand RUB.)

Products:Veneer

Thickness: from 0, 3 to 3 mm

Format: 1525 x 1525

The volume of production per year:

50 000 CBM

Revenue (RUB per year):

500 million.

Net profit (RUB per year):

219 million.

Simple payback period:

34 months.

Discounted payback period:

37 months.

NPV (10 years) net present value:

1 046 383 thousand.

PI – profitability index:

2, 7

Accommodation: the city of Kostroma Kostroma region with the highest rate of forest cover in the Central Federal district 74, 2%, which ensures the availability of raw materials enterprises.

Product: Veneer. A wide range of applications in the furniture and plywood production. Implemented in the framework of the project the company has guaranteed sales of the entire output, as veneer is a versatile, valuable intermediates for the production of various products with high added value.

Raw material: birch Logs with a diameter of 10 cm.

Pricing: the Actual price of birch veneer in the Russian market is about 14 000 RUB./m3. The project includes the minimum competitive price products for the domestic market, excluding exports. Note, the export price ranges from $230 to $1600 per m3, depending on the category, quality and thickness of veneer.

Production area: According to data from open sources in Kostroma, there are free land plots for industrial construction. Also, for a substantial reduction in the term of start of the enterprise is considered and the redevelopment of old industrial zones in the presence of objects of engineering and transport infrastructure. Specifications and contracts for connecting to networks that give the right to restore the communication and to obtain the necessary power, to avoid charges for a new connection, which is a key source of savings in the project budget.

Conclusion: Therefore, exercisable the company has a low production and marketing risks can be displayed on a given power for 1 year and recouped in a short time.

The financial structure of production.

Investment:

Equipment: 3 automatic peeling line, dryer, crusher, etc., delivery and installation supervision.

$2 600 000 (178 mln.)

The acquisition, construction of production and warehouse space

$2 036 000 (140 million rubles).

Acquisition of land

$440 000 (30, 0 mln.)

Working capital

$518 000 (35, 6 mln.)

Total:

$5 664 000

The cost and profit.

The cost of raw material (birch balance) RUB/m3

1500

The volume of production m3 / year

50 000

Raw material consumption on 1 m3 of dry veneer

1, 848

The necessary volume of raw, m3 / year

92 400

The cost of raw materials per year, thousand RUB.

138 600

The number of employees. ed

167

The average consumption per employee in RUB/month.

33 443

The Fund RFP in year, thousand RUB.

89 807

The cost of equipment maintenance per year (10% of initial cost), ths.

17 873

Other production expenses, thousand RUB.

34 870

The cost of 1 m3 of dry veneer, RUB/m3

5 623

The price of manufactured veneer, RUB/m3

10 000

Revenue in the year thousand RUB.

500 000

Profit in a year, thousand RUB.

219 846

Project initiator: Miftakhov Alexander R.

General Director of "Alliance", one of the major tenants of forest plots of the Kostroma region, having a direct contract with the forestry Department on the annual volume of use in excess of 400 thousand m3 of timber.

For 7 years he worked as General Director of OAO FANPLIT, Kostroma, enterprises for the production of plywood and slabs, with an average annual export volume of $66 million (http://www.ved.gov.ru/rus_export/russian_exporters/?id=639 ).

Contact person: Merkur'ev Mikhail Viktorovich