Plastic products such as household items, gift items, plastic cups, toys, seats, tables, bags, etc. are daily consumables. The demand is very high that the available producers in the country cannot satisfy the market.
Apart from local buyers, the entire ECOWAS sub-region relies wholly on Nigerians for their plastic wares. This is not surprising because all the raw materials for the production of quality plastic products are available locally and at affordable prices.
In this investment profile, prospective investors are educated on how to invest successfully into this lucrative venture putting all the necessary inputs into consideration such as technical, marketing, operational and financial requirements into consideration.
Plant And machinery
The adoption of a simple plant to produce different quality products is what is ideal. What is needed involves fixing different molds into the injection molding plant.
Survey findings have revealed that most Nigerian industrialists and project promoters are not fully aware of these economic efficiencies of injection molding plant.
It implies that the plant in mind would produce different products to meet seasonal demand.
Theoretically, this project may be sited in any state of the federation without procurement difficulties. Project implementation involves the acquisition of factory house, purchase, and installation of plant and machinery, recruitment of appropriate personnel and other accessories.
The projected cost of establishment
The initial cost of the project is estimated to be N25, 800, 000. The project can be scaled down depending on resources.
The major raw materials required are thermo-plastics of high fluidity such as high-density polyethylene and others.
The beauty of this project is that both the injection moulding plant and raw materials are available locally, easy to source, both the fixed and variable inputs.
The production technology of plastic products is simple, though mechanical. The materials are thermo-plastics of high fluidity.
The granules are introduced through a hopper, into the cylinder in which they are heated, above their softening pint, by means of a heating jacket.
Moving piston plasticizers force the material through a nozzle into the mould. Different kinds of moulds are used to produce different plastic products. The extruded material is cooled and is taken off by means of suitable devices.
The plant in mind has a production capacity of 4000-4, 500 plastic cups per two shifts per day of 5,000-6,000 plastic plates per day.
There are two markets for plastic products; the domestic and foreign markets. Households in general, canteens, industries, hospitals, clinics, and hotels form the domestic market, while the neighbouring West African countries constitute the foreign markets.
For profitability 4, 000 plastic cups are assumed per day. Given 250 working days per annum, 83,333 dozens of plastic cups would be produced per year. Assuming a conservative price of N100 per dozen, N5, 499,978 would be annual gross revenue.
• Global Trust Consulting. Tel: 08034494437(WhatsApp), 08023664368. Email: [email protected]