Opportunity Snapshot
- Country: Russia
- Industry: Manufacturing
- Stage: Start-up
- Investment size: $100,000,000 / min. $70,000,000
- Type of investment: Debt, Equity
Investment Opportunity
We would like to draw attention of investors to the project of autonomous timber processing enterprise (ATPE) in Russia.
The enterprise harvests and processes annually 370,000 cubic meters of round timber, from which it manufactures complete sets of low-rise wooden houses of glued beams with total area of 370,000 square meters.
One of the features of ATPE, which distinguishes it from other similar enterprises, is a high degree of autonomy that affords:
• To meet requirements of enterprise completely in all basic products (heat, electricity, fuel, paraffin, windows, doors, etc) due to their on-sight production and exploitation without extra cost and additional expenses.
• Implementation of multi-step use of waste.
• Implementation of closed-loop production.
Autonomy ensures consistently high quality of the product, sustainability and profitability of production regardless of external crisis.
The second feature of ATPE is the use of numerous innovations that has increased efficiency of production and added new qualities to manufactured houses.
The combination of these features made it possible to attain following set of characteristics of houses not yet achieved at other enterprises:
• Thermo-insulating properties equal to timber lining of 45-50 cm thickness.
• Increased wind and earthquake resistance.
• Longevity and resistance to humidity.
• Factory quality finish. Ready-to-assemble parts not requiring finishing works.
• Safe for habitation. No toxic emissions.
• Time required for assembling the house is 2-4 weeks for an average family without the need of special equipments.
• Cost of an assembled house ~ $ 500/m2.
The investments required for the design and construction of ATPE (excluding automobile and railway terminals) amount to $ 100 million, the estimated profitability after achieving the projected capacity is ~ $ 60 million annually. The time limit for returning invested funds will be 5 years that include 2.5 years for planning and construction of the enterprise and another six months to reach full production capacity.
Upon reaching the projected production capacity serial reproduction of the enterprise will become possible.
Competitive Advantage
One of the features of ATPE, which distinguishes it from other similar enterprises, is a high degree of autonomy that affords:
• To meet requirements of enterprise completely in all basic products (heat, electricity, fuel, paraffin, windows, doors, etc) due to their on-sight production and exploitation without extra cost and additional expenses.
• Implementation of multi-step use of waste.
• Implementation of closed-loop production.
Autonomy ensures consistently high quality of the product, sustainability and profitability of production regardless of external crisis.
The second feature of ATPE is the use of numerous innovations that has increased efficiency of production and added new qualities to manufactured houses.
Rationale for the deal
The investments required for the design and construction of ATPE (excluding automobile and railway terminals) amount to $ 100 million, the estimated profitability after achieving the projected capacity is ~ $ 60 million annually. The time limit for returning invested funds will be 5 years that include 2.5 years for planning and construction of the enterprise and another six months to reach full production capacity.
Upon reaching the projected production capacity serial reproduction of the enterprise will become possible.
Use of financing
The investments required for the design and construction of ATPE (excluding automobile and railway terminals) amount to $ 100 million.
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