Project investment MDF manufacture of SAHABAK JSCCHAPTER I.OVERVIEW OF PROJECT : OBJECTIVES, Through market research shows that our country's annual import MDF fromMalaysia, Thailand, Ch
Trang 1Project investment MDF manufacture of SAHABAK JSC
CHAPTER I.OVERVIEW OF PROJECT : OBJECTIVES,
Through market research shows that our country's annual import MDF fromMalaysia, Thailand, China, Indonesia, New Zealand Etc
The project SAHABAK Corporation founded with the goal of:
Building MDF manufacturing plant with advanced prices reasonable for theindustrialization and modernization of the country
Trang 2Creating materials for interior decoration industry, instead of natural wood,contributing to reduce deforestation.
Creating valuable goods, contributing to local economic development, creating jobsfor local workers
c PRODUCTS AND TARGET MARKET OF PROJECT
i Main products of project and purpose of using
MDF (Medium Density Board) of wood artificially high mechanical strength, large
size, suitable for furniture production technology in the interior tropical climates.Fibreboard is widely used in many fields of manufacturing furniture, interior decorationand construction
MDF is produced through the process of shredded wood fibers pressed, crushed andmixed glue, the proportion of 520-850kg/m3, depending on quality requirements, rawmaterial, thickness On the market there are 3 main types: plain, water-resistant, melamine.plain MDF is the most common type, often using veneer, paint or PU coating
Also waterproof MDF belong plain MDF category, water-resistant adhesive is mixed
in the production process, often used in areas where exposure to water or high humiditysuch as doors, indoor furniture, melamine kitchen cabinets MDF: MDF sides are coatedwith melamine to create beauty, moisture and scratches
ii Specification of products
Dimensions: (W x L): 1,220 x 2,440 mm Thickness: From 9 → 22 mmProduct was achieved by Vietnam standards and European standards (Euro MDF Board(EMB) Standard, 1995, the Third Edition) The standards board E1, E2, CARB
iii Segment market of products:
The project's main client is the furniture manufacturing business, especiallycompanies need high-quality MDF, consistent standards for the production of furnitureexports
Client projects include importers MDF in regional markets such as Japan, Korea,India
d ESTIMATED PRESENT MARKET SIZE AND FORECAST
Trang 3Through data analysis above shows that the demand for MDF in the domestic market
is huge and keeps growing Moreover, the ability to meet the needs of the business market
in the country is not enough SAHABAK Company firmly believes that the company'sproducts will have a place in the market Firstly, the market is so large that domestic firms
do not produce enough Second, the company's products superior in quality, have increased
resistance to moisture and fire through the application of state–of–the–art technology, the
most advanced available today
2 Analysis of competition of domestic: :
a) MDF GERUCO Quangtri Company
Capacity: 70,000 m3
Lines and equipment purchased by the German group Metso supply, installation andtechnology transfer The average selling price in 2007: 245 USD/m3
b) MDF Kim Tin Factory
Capacity: 160,000 m3 Equipment lines: China 50% active power
c) Vina Eco Board Co (VECO)
Capacity: 250,000 m3 Lines of Dieffenbacher from Germany, 80% active power
d) Ý Mỹ JSC MDF
Capacity: 120,000 m3 Lines: Dieffenbacher Germany, is preparing production
Trang 4There's also a number of other plants are also in the process of implementing theproject as forestry company in May in Nghe An, Hoa Binh Tan An Factory
Trang 5CHAPTER II TECHNOLOGY AND PRODUCTION
PROCESS:
I SUMMARY CHART PROCESS TECHNOLOGY:
Layout of technology
Trang 6II CAPACITY OF LINE:
The total line capacity of 360 m3/day (108,000 m3 per year with 300 working days)and are perfect for the game with the thickness of 16mm, operating 3 shifts / day (7.5 hoursper shift) , with a minimum operating time of the day is 22.5 hours Capacity of linesdepends on the thickness of each product, and is calculated as follows
Final board (mm) Rough boar (mm) kg/m3 m3/day
Trang 7III EQUIPMENT LIST: (Summary of Main categories)
Amount ( USD)
1 Wood chip preparing systems 954,457
2 Wood fiber prepare systems 8,766,820
5 Cutting and Sanding systems 1,586,531
8
Auxiliary system: dust, compressed air, pumping, transporting, storage tanks, electrical cabinets 6,419,459
Total 35,328,775
e THE TOTAL VALUE OF EQUIPMENTS :
(Reference: Quotation equipment supplier Dieffenbacher)
The total value of equipment: 35,328,775 USD.
EXCHANGE RATE : 21.200 VNĐ/USD
The total value of equipment in VND : 748,970,030 ( x1000) (a)
IV SPECIFICATION OF MATERIALS, ENERGY:
1 Main Material:
a Specification timber:
Type of wood: Log timber
Density: 650 to 1.000 kg/m3
Moisture contents: 60% Minimum - Maximum 100%
Dimensions: Length: 1,000 mm Minimum - Maximum 3.000 mm
Diameter: Min 40 mm - 160 mm Maximum
Other conditions: No mixed metal, stones and other impurities
Trang 8b Supplier:
Factory is expected to put in Thanh Binh Industrial Zone, Cho Moi District, Bac Kan province, bordering the province of Thai Nguyen, Cao Bang, Tuyen Quang, this is an area of planted forest area (acacia leaf eucalyptus ) of the country's largest.
Plant material is located in the active material advantage and transportation costs of raw materials
2 Resin and Additives:
c Hexamethylen Tetramine and/or Urea:
Chemical buffering agent to decompose in water quality depends on the speakersusing glue and pH levels in the water Chemical formula of hexamethylen Tetramine:(CH2) 6N4
d Paraffin: Wax special, maximum oil rate of 3%
e Supplier: The resins and additives mentioned above are the chemical
companies in Vietnam to import the timber industry to serve.
3 Energy :
a Electricity : 380/200 V/ 50 (+/-1) Hz
Electrical power is provided by the zone and ensure the electrical requirements forthe project To maintain continuity of operation of the project, the investor is also fittedwith backup generators
Trang 9b Water: Pressure: 2x105 Pa, Water quality: pH 6.5 - 8.5
Water provides water use by industrial parks have satisfactory properties of the chain.
4 Consumption raw materials, energy projects:
For ease of calculation, the project needs energy, material thickness of projects withthe most commonly used product is 16mm, and 760 kg/m3, 360 m3/day Capacity offactory
Equivalent to approximately 108,000 m3 (approximately 300 working days)
Equivalent to approximately 82,080,000 kg / year (760 kg/m3)
Based on standard material consumption, energy suppliers, consumption is calculated
as follows:
Materials Consumption
For 1m3 product
Total consumptionFor 108,000 m3 product
Urea formaldehyde 110 kg 8,360 Tons
Energy 1,520,000 Kcal 164,160 Megacal
f FACTORY BUILDING SOLUTIONS
v Locations description:
Factory will be built in Thanh Binh Industrial Park located in Cho Moi District, BacKan Province This location is very convenient in terms of road, 130km from Hanoi andlocated close to Highway 3, Factory will be built according to the approved designrequirements to ensure the needs of MDF factory moderns; will meet the requirements ofenvironmental, scenic, and aesthetic Area of 80,000 m2 will be used
vi Construction of main sections
1 Main workshop m2 20,000 3,500 70,000,000
2 Warehouse m2 5,000 2,500 12,500,000
Trang 1012 Area for loading goods m2 1,000 1,300 1,300,000
13 Tree and grass mat m2 10,000 250 2,500,000
14 Main Power and lighting Set 1 4,000,000 4,000,000
15 Water supplier and drain Set 1 3,500,000 3,500,000
16 Communications systems Set 1 1,500,000 1,500,000 17
The company will build the plant in accordance with standards, including the mainitems of the approved design
Trang 11CHAPTER III ORGANIZATION PROJECT IMPLEMENTATION MANAGEMENT
I MANAGERMENT BOARD
The following table shows the structure of the company's management, whichreflects the relationship between the production department, and business leaders:
Trang 12Management Structure - Monitor: Board is the highest authority of the proposeddevelopment company policies, through the planning and implementation of the report toits supervisory function Also can organize the appropriate parts of the process according tothe company's development and production situation specific.
b DEMAND FOR MANPOWER:
Trang 13CHAPTER IV FINANCIAL ANALYSIS
I DETERMINATION OF TOTAL CAPITAL INVESTMENT
vii Calculate Fixed capitals:
(ĐVT: x1000 VND)
2 Cost of transport to delivery to factory site 5,500,000
3 Cost of insurance when transports (0,22% x 110% total) 1,812,507
4 Cost of insurance when installation (0,3% x 110% total) 2,246,910
viii Calculate the annual depreciation:
Cost of production equipment: depreciated steadily over 08 years
Construction costs: depreciation is for 8 years
The cost of office equipment: 4 years, means of transport: are amortized in 05 years
Trang 14Table calculating depreciation: (Unit: x1000 VND)
The total value of fixed
capital beginning of period 882,915,838 772,012,609 661,109,380 550,206,151 439,302,922 329,087,193 219,391,464 109,695,735
Depreciation of equipment 95,003,423 95,003,423 95,003,423 95,003,423 95,003,423 95,003,423 95,003,423 95,003,423are linear in 8 years
Depreciation of construction 14,692,306 14,692,306 14,692,306 14,692,306 14,692,306 14,692,306 14,692,306 14,692,306are linear in 8 years
Trang 15ix Calculate working capital:
Pursuant to the the cost of production and the annual production plan, calculate thedemand for working capital and working capital minimum amount necessary to ensure thecompany's operations are not hampered as demand for reserves follows:
X 1000 VND
Products in stock (1 months total cost) 26,280,961.63
Total working capital for the project is necessary calculations : 54,307,282
x Total Capitals Investment
TABLE OF CAPITAL RESOURCE
- Fixed capital: 132,437,376 (x1000 VND) accounts for 15% of fixed capital
- Working capital: 54,307,282 (x1000 VND) accounts for 15% of working capital
Trang 17DEBT REPAYMENT PLANNING TABLE:
Unit (x1000 VNĐ)
Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Value initial 529,749,503 463,530,815 397,312,127 331,093,439 264,874,751 198,656,064 132,437,376 66,218,688 Loans in the period 529,749,502
- % Per Total Fixed
Interest rates 6.9%
Payment 102,771,404 98,202,314 93,633,225 89,064,135 84,495,046 79,925,956 75,356,867 70,787,777 Original debt 0 66,218,688 66,218,688 66,218,688 66,218,688 66,218,688 66,218,688 66,218,688 66,218,688 Interest 0 36,552,716 31,983,626 27,414,537 22,845,447 18,276,358 13,707,268 9,138,179 4,569,089 Value end of period 529,749,502 463,530,815 397,312,127 331,093,439 264,874,751 198,656,064 132,437,376 66,218,688 (0)
Value initial 220,728,960 193,137,840 165,546,720 137,955,600 110,364,480 82,773,360 55,182,240 27,591,120 Loans in the period 220,728,959
Total original debt 93,809,808 93,809,808 93,809,808 93,809,808 93,809,808 93,809,808 93,809,808 93,809,808 Total interest 59,729,256 52,263,099 44,796,942 37,330,785 29,864,628 22,398,471 14,932,314 7,466,157
Trang 18c FINANCIAL CALCULATE TABLE
1 Planned revenue
Reference price and the price of imported, MDF Quang Tri, MDF Gia Lai in the past
6 years, can determine the average price over the year as follows:
2007: From 220-230 USD/m3 2008: From 230-250 USD/m3
2009: From 260-280 USD/m3 2010: From 270-290 USD/m3
2011: From 290-320 USD/m3 2012: From 295-320 USD/m3
From early 2013 until now with the impact of global economic recession, the averageprice decreased MDF (15%) compared with the same period in 2012 MDF average importprice from 280-295 USD/m3
Unless the inflation rate, product price assumptions carefully project is 280 USD/m3(as in the case of economic slowdown lasts), exchange rate 21,200 VND/USD, equivalent
to 5,936, 000 VND/m3
The average occupancy rate of the plant is 108,000 m3 By carefully, assuming theproject is only running 50% capacity in the first year, and 20% more capacity for the nextyear Table 5 of revenue for the first year of operation:
Capacity forecast (m3) 54,000 75,600 97,200 108,000 108,000
Price (x1000 VNĐ/m3) 5,936 5,936 5,936 5,936 5,936Revenue (x1000 VNĐ) 320,544,000 448,761,600 576,979,200 641,088,000 641,088,000
2 Planed cost of Production :
Trang 19Paraffin Ton 1,140 22,000 25,080,000
Total material, fuel cost for 108.000 m3 products 248,312,000
b) Table of material and fuel cost:
Year 1 Year 2 Year 3 Year 4 Year 5
Output (m3) 54,000 75,600 97,200 108,000 108,000
Price x1000 VNĐ/m3 2,299 2,299 2,299 2,299 2,299 Amounts (x1000 VNĐ) 124,156,000 173,818,400 223,480,800 248,312,000 248,312,000
c) Payroll, Training cost
Monthly wages (refer to table HR needs): total monthly salary in year 1 is 1,450,400(x1000 VND) Salary increases above is consistent with the expansion of business over theyears However, growth rates are in line with the growth of production and wage costs arelower in cost estimates Assertions such salary increases are possible and acceptable.According to estimates, the wage bill increased by 10% / year
Calculating payroll Annual Fund the annual salary is 13 times the salary of themonth This represents the minimum salary demands required in the development ofhuman resources:
Salary expenses in year 1 = 1,450,400 x 13 = 18,855,200 (thousand)
Insurance + 1 year = 18,855,200 x 19% = 3,582,488 (thousand)
Cost of annual training: training cost depends on the business of the Company andexpected market development Estimated cost of training as follows:
Training costs in the country: 60% of monthly salary fund:
1,450,400 x 60% = 870,240 (thousand VND)
The cost of training abroad: 40% of monthly salary fund
1,450,400 x 40% = 580 160 (thousand VND)-
Trang 20Table of salary and training cost:
Unit: (x1000 VND)
Year 1 Year 2 Year 3 Year 4 Year 5Monthly salary 1,450,400 1,595,440 1,754,984 1,930,482 2,123,531 Annual salary 18,855,200 20,740,720 22,814,792 25,096,271 27,605,898 Insurance 3,582,488 3,940,737 4,334,810 4,768,292 5,245,121 Training cost
- Domestic 870,240 957,264 1,052,990 1,158,289 1,274,118
- Aboard 580,160 638,176 701,994 772,193 849,412 Total 25,338,488 27,872,337 30,659,570 33,725,528 37,098,080
d) Other cost
Year 1 Year 2 Year 3 Year 4 Year 5
remaining value(x1000 VND) 772,012,609 661,109,380 550,206,151 439,302,922 329,087,193Revenue (x1000 VND) 320,544,000 448,761,600 576,979,200 641,088,000 641,088,000Spare part: USD 1,2 / m3
(X1000 VND) 1,373,760 1,923,264 2,472,768 2,747,520 2,747,520Maintenance costs, equipment
maintenance, plant = 2%
Remaining value 15,440,252 13,222,188 11,004,123 8,786,058 6,581,744
Packaging cost: $US 2,2 / m3
(x1000 VND) 2,518,560 3,525,984 4,533,408 5,037,120 5,037,120
Marketing, delivery cost,
10% sale first year, 7% for 2nd
year and 5% for next year)