PET Bottle Recycling 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 packaging has become indispensable to the world. A global trend has emerged to produce hi-tech, sophisticated and eye-catching plastic packaging. PET (polyethylene terephthalate) has recorded the fastest growth rate in the global plastics market and this is evident from the revolution witnessed in the fields of mineral water, beverages, edible oil, detergents etc.

PET (polyethylene terephthalate) excels by its inherent values like strength, safety, cost-effectiveness and being lightweight, unbreakable and recyclable. Today, the food and beverages industry is increasingly using PET (polyethylene terephthalate) to replace glass and other materials.

PET (polyethylene terephthalate) is a packaging medium for a wide variety of liquid foodproducts such as edible oils, syrups, mineral water, alcoholic beverages, juices and honey. It has now been adopted for storing all types of foods.

Mineral water and soft drinks account for a major share of the total demand. Others includeprocessed foods, edible oils and sauces. Kitchen containers are another major usage centre.

In Nigeria, PET (polyethylene terephthalate) started being used in a perceptible way only very recently. It is projected that the demand will grow appreciably, especially for packaging soft drinks and water.

Soft drinks are witnessing a gradual shift towards the non – returnable bottles due to changing lifestyles and convenience.

PET (polyethylene terephthalate) packaging has been doing very well as it offers the flexibilities of innovation, both in terms of pack design and size.

Our research indicates that the main driver of growth for PET (polyethylene terephthalate) bottles in Nigeria has been the food and beverage sector with water industry accounting for about sixty-five percent (65%) of PET (polyethylene terephthalate) usage in Nigeria.

The demand for PET (polyethylene terephthalate) plastics is estimated to rise at about seven percent (7%) annually over the next ten (10) years. With the growing demand for carbonated soft drinks, water and edible oil, PET (polyethylene terephthalate) Preform bottles are also increasing in demand.

There is rapid increase in the population of Nigeria. From the data available to us the present figure is estimated at over one hundred and eighty (180,000,000) million as the end of 2015 and increase from about one hundred and forty (140,000,000) million people as at 2006 census.

As the human population continues to increase, the quantity of solid wastes generation also increases. With rapid increase in population within urban cities there is need for efficient and modern technology for the management of wastes.

Presently, the rate of waste generation in Lagos (with estimated population over ten (10,000,000) million in 2012) is nine thousand (9, 000) tonnes/day (source- Lagos State Waste Management Authority – LAWMA) while in Kano State, the rate is three thousand, eight hundred and forty nine (3, 849) tonnes/day (source- Bayero University Kano Consultancy Unit).

Generally, the average rate of generation is estimated as 0.5kg/capital/day. Some of the waste generated includes paper, glass and plastic and with the use of technology, these products can be transformed into useful products again.

Recycling plastic is an essential requirement in modern society in view of the environmental problems faced by the extensive use of plastics bags, cans, and bottles.

The used bottles of plastic are recycled by washing, crushing and grinding into flakes and then pellets. Recycled PET (polyethylene terephthalate) is used, for non-food grade applications like Bottles, Jars, Sheets, Fiber, strap, zip fasteners etc.

The proposed plant comprise of one set of three hundred (300) kg per hour PET Bottle recycling plant and three hundred (300) kg per hour Pelletizing machine and one set of one hundred and fifty (150) KVA power generator. Other equipment required are Weighing scale, Project Vehicles and Wood Pallets.

The equipment would operate at ninety percent (90%) of the installed capacity working double shifts of eight (8) hours each in three hundred (300) day per annum producing eight thousand, six hundred and fourty (8,640) bags of twenty-five (25) kilogramme weight bi-monthly with one percent (1%) weigh loss.

This report is to examine the financial viability or otherwise of establishing a waste PET (polyethylene terephthalate) bottle recycling plant in Lagos, Nigeria.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 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 Packaging and 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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