The required capital for establishing a factory for the production of various sealant
In this article, we will examine the capital required to establish a factory for the production of various adhesives in Iran in the year 1403 (Islamic calendar). The sealant manufacturing industry is considered one of the vital and important industries in the economy of any country. With the increasing demand for sealant products in various industries, including construction, automotive, packaging, and woodworking, the demand for different adhesives has significantly increased in our country as well. Therefore, investment in setting up an adhesive production factory can be considered a favorable economic opportunity.
- Choosing the Factory Location
Choosing the right location for establishing a factory is one of the most critical steps. The cost of purchasing or renting land for factory construction varies depending on geographical location and proximity to raw material sources and consumer markets. For example, land prices in industrial areas around Tehran or larger cities like Isfahan and Shiraz are higher than in more remote areas.
Assuming the factory is established in one of the industrial parks near Tehran, the cost of purchasing land with an area of 10,000 square meters will be about 30 to 50 billion tomans. Additionally, the cost of constructing the necessary buildings and warehouses for production, storage, and office space is estimated to be around 30 to 40 billion tomans.
- Equipment and Machinery
Various equipment and machinery are needed for the production of different adhesives. This equipment includes mixers, industrial stirrers, packaging machines, continuous and semi-continuous production lines, and laboratory equipment. The cost of acquiring this equipment varies depending on the quality and brand type.
The cost of purchasing the necessary equipment for a factory with an average production capacity is estimated to be around 100 to 150 billion tomans. This figure also includes installation and commissioning costs.
- Human Resources
Hiring skilled and specialized personnel in various stages of production, maintenance, quality control, and factory management is essential. For an adhesive production factory with an annual production capacity of approximately 10,000 tons, at least 50 to 70 personnel must be hired, including chemical engineers, technical technicians, labor workers, and administrative staff.
The cost of salaries and benefits for these employees is estimated to be around 20 to 30 billion tomans annually, depending on their level of expertise and experience.
- Raw Materials
Acquiring high-quality raw materials is one of the most critical factors in producing standard and competitive adhesives. The main raw materials required for producing various adhesives include polymers, resins, solvents, and chemical additives. Some of these materials may be sourced from the domestic market, but others require imports, which also incur additional costs such as customs and transportation.
Considering the rise in chemical prices in recent years and currency fluctuations, the cost of raw materials for producing 10,000 tons of adhesive per year is estimated to be around 100 to 150 billion tomans.
- Energy Costs
Producing adhesives requires a significant amount of energy consumption. Electricity, gas, and water are among the most important energy sources used in the adhesive production process. The estimated cost of energy consumption in a factory with average production capacity is about 500 million to 1 billion tomans per month. This figure will amount to about 6 to 12 billion tomans annually.
- Overhead and Marketing Costs
In addition to the aforementioned costs, overhead costs including insurance, taxes, maintenance and repairs, and marketing expenses should also be considered. Marketing and advertising expenses for product promotion and attracting new customers are also very important. These costs are estimated to be around 5 to 10 billion tomans annually, depending on the marketing strategy and type of products.
- Conclusion
Based on the examinations conducted, the cost of establishing a factory for the production of various adhesives with an annual production capacity of 10,000 tons in the year 1403, is as follows:
- Land and Building: 60 to 90 billion tomans
- Equipment and Machinery: 100 to 150 billion tomans
- Human Resources: 20 to 30 billion tomans per year
- Raw Materials: 100 to 150 billion tomans per year
- Energy: 6 to 12 billion tomans per year
- Overhead and Marketing: 5 to 10 billion tomans per year
By summing up the above points, the initial capital required to establish the factory will be approximately 285 to 442 billion tomans. Additionally, the annual costs of the factory are estimated to be around 131 to 202 billion tomans.
Final Words
Investing in the adhesive production industry, considering the increasing demand in domestic and foreign markets, can be a favorable economic opportunity. With precise planning and the use of modern technologies, it will also be possible to compete with foreign products. Ultimately, given the high costs and the requirement for substantial investment, it is recommended that this project be accompanied by financial and credit support from the government and banks to reduce potential risks and achieve higher profitability.