5 L – 50 L HDPE plastic containers production in Nigeria; The feasibility report.

Plastic have played a vital role in the growth phase of the Nigerian economy and continue to do so. From packaging to agriculture, automobiles and electronics plastics have revolutionized all areas because of its functionality, economics, aesthetics and reliability.

Plastic have made all products affordable to the Nigerian consumer and have helped in raising the lifestyle of the common man. Consequently, a lot more products manufactured in Nigeria today either contain plastics or are contained in plastics.

Small size plastic containers are used for packing of drugs, pharmaceuticals, insecticides, food items etc. The plastic blow moulded containers are made from HDPE, HMHDPE, LDPE, PP etc. Blow moulded plastic containers are finding great demand in modern era.

This report is to examine the financial viability or otherwise of establishing a plastic container (jerry can) production plant in Lagos using High-density polyethylene (HDPE) as the raw material.

Though there are lot of products can be manufactured by blow moulding technology, Initially, we intend producing 5 Litre, 10 Litre, 25 Litre and 50 Liters filling capacity targeting households/family and the oil /gas industry.

The proposed plant comprises of one set of double station 5 L High-density polyethylene (HDPE) plastic containers (jerry cans) plant that can produce 1L – 5L containers (1 L – 4L containers are mainly used in the packaging of lubricant oil while the 5 L are used in households), one set of single station 10 L High-density polyethylene (HDPE) plastic containers (jerry cans) plant that can produce 10 L containers (mainly used in households), one single Station 25 L High-density polyethylene (HDPE) plastic containers (jerry cans) plant that can produce 25 L containers (mainly used in the lubricant oil packaging and household) and one single Station 60 L High-density polyethylene (HDPE) plastic containers (jerry cans) plant that can produce 50L – 80 L containers (mainly for household use).

The output of the machine is a function of the capacity as well as the thickness of the product to be produced. Because of the different thickness of the product that can be produced for use in different industries, we would provide insight on the household and lubricant oil market for the product.

The lubricant market requires the following sizes and minimum thickness 1L – 70g weight, 4L – 240 g and 25 L – 1.4 kg while the household market requires the following sizes and minimum thickness 5L- 150g, 10 L- 300g, 25 L – 750g and 50 L – 1,500g.

Not only are the weight containers used in the lubricant market higher, they are also more expensive than the products in the household market.

Each plant comprises of extrusion blow molding machine, auto-loader, chiller, crusher, compressor, mixer and molds. Other auxiliary machine includes leakage tester, in-mould labeler etc

The plant would operate at seventy-five percent (75%) of the installed capacity for double (2) shifts of eight (8) hours each in the first, second, third, fourth and fifth year of operations respectively and producing 216,000 pcs of 5L High-density polyethylene (HDPE) plastic container (jerry can)of 150 g weight each, 124,000 pcs of 10 L High-density polyethylene (HDPE) plastic containers (jerry can) of 300 g weight each, 60,000 pcs of 25 L High-density polyethylene (HDPE) plastic containers (jerry can) of 750 g weight each and 36,000 pcs of 50 L High-density polyethylene (HDPE) plastic container (jerry can)of 1,500 g weight each bi-monthly.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Value Proposition 1.4 Critical Success Factor of the Business 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start -up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cash flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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