Invest in Construction of Plant Producing Wood-Cement Plates Annually

Opportunity Snapshot

  • Country: Russia Russia
  • Industry: Manufacturing
  • Stage: Start-up
  • Investment size: $16,000,000 / min. $7,200,000
  • Type of investment: Debt

Investment Opportunity

This investment project envisages the construction of a plant for production of wood-cement plates with a guaranteed annual output of 300,000 m2 plates.

The investment needed for the project is U.S. $ 16,000,000.
The investment project envisages the production of permanent formwork for monolithic construction using the "Velox” technology (wood-cement composite pressed in forms, sizes of plates 2 m by 0.5 m, with a thickness of 25.35 mm and 50 mm). A VELOX V1200 line will be used for production.

Targeted markets: Chelyabinsk region, Sverdlovsk region, Kurgan region and Bashkiriya. The marketing strategy envisages the following activities:
1.On-demand supplies for private house construction
2. Sale of plates (it should be noted that Velox is one of many technologies which allow you to transport materials for construction over a long distance, since transportation of the plates costs very little).
3. Construction of social housing and buildings
4. Organisation of commercial construction.

The initiator of the project is an LLC. The management team consists of:
General director Alexander: Samoilenko Vasilevich, university degree.
Vice-general director: Alexander Lazarev Matveevich, university degree in construction.
Vice-general production director: Shevnin Leonid Aleksandrovich, technical university degree.

Line of business of the LLC: production of building materials,
construction of buildings, cargo transportation.

For the project realization, we have held negotiations with the authorities to allocate a plot. The project for production of boards using “Velox” technology is at the stage of start-up.

The project envisages an investment in two stages. The investments are needed to buy the following:
- Equipment: 3,733,000 USD
- Licensing, staff training: 667,700 USD
- Contract fee: 66,700 USD
- Building of workshops, administrative buildings, warehouse for finished products, warehouse for raw materials and textiles, facilities, etc.: 110,0000 USD
- Transport: 450,000 USD
- Purchase of raw materials (wood, cement): 1,250,000 USD
- Purchase of the plot: 100,000 USD.

When the plant starts operation, we will pursue the following main tasks:
- Formation of a clear production plans for the production of plates, monitoring of the implementation of the plans, calculation of the production program in terms of volume and rhythm of production;
- Improvement of the basic turnover and working capital;
- Purchase of materials and raw materials at the best prices;
- Streamlining of business costs;
- Operational impact risk assessment.

The initiator of the project plans to reduce the risks and to protect the investments by:
- Financing the project in two stages;
- Controling the production process and reducing the impact of suppliers through diversification and duplication of suppliers, the use of imported parts, automation of the production management system;
- Creating a dealer network for sales;
- An appropriate pricing policy;
- Building public awareness regarding the enterprise (Public relations); corporate identity, advertising;
- Work with dealers on a pre-payment;
- Undertaking activities to decrease potential damages associated with business risks:

Signing contracts for insuring the real value of the property and for insurance against financial loss.

Investors can contact us on Merar.

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