We do business in the production of foam

Benefits of a Foam Business

Foam is used in almost all industries, in particular:

There are not many factories producing foam plastic products in Russia, and foreign products, which have a high cost, are quite popular. All this speaks of the great competitive advantages of this business, since the demand in this industry exceeds supply, and, therefore, the owner can receive superprofits.

Components of the mini-plant, their technical characteristics

Today you can buy equipment of domestic production, Chinese and European. In terms of price category, Russian and Chinese are on the same level, but it is also necessary to take into account the cost of delivery and maintenance of equipment, because often questions about operation may arise or call a specialist-adjuster, and it is easier to do this with a Russian company.

AVIS-GROUP offers a mini-plant for the production of foam products of the following configuration:

pre-foaming agent - required for preliminary heat treatment of expanded polystyrene granules to a density of 10 to 50 kg / m 3. Features:

• Block-form automatic vacuum installation - it is necessary to remove excess air in the formed sheet, with its help the forming process is accelerated.

Waste shredder - required for crushing scraps after cutting finished sheets. This process is necessary for the organization of waste-free production, since the waste can be reused by adding to the granules, but not more than 5%.

• power - 7 kW;
• productivity - up to 5 m 3 / h;
• dimensions - 830 * 800 * 1300 mm.

Foam production is a demanded and profitable idea that requires quite serious financial investments. On the other hand, this business format can bring tangible profits. Finished products are used in construction, renovation and reconstruction of buildings.

Polyfoam has excellent sound and heat insulation properties. It is often used to insulate rooms and interior walls. It is an excellent alternative to expensive air conditioning systems and high heating costs. Such features provoke an even greater growth in demand for finished products. An entrepreneur setting up a foam plastic business can count on high and stable profits without having to spend a lot on advertising.

Market Analysis

• Retail sales. This option allows you to significantly reduce advertising costs and get rid of rental costs. The bottom line is the sale of foam through regional construction stores. One such point of sale per month is capable of selling about 30 m 3 of polystyrene. The disadvantages include transportation costs for the delivery of finished products to stores, the need to give part of the profits to stores (which will significantly reduce the profit of the entrepreneur himself), damage to the finished material during transportation or storage (natural loss for such a fragile material is about 5%).
• Wholesales. In this case, you can sell foam directly from your warehouse. In this case, you will have to equip a small room for laying out samples and serving customers. One wholesale buyer purchases at least 30 m 3 of foam. The bottom line is to get a quality product without any extra charge directly from the manufacturer.

There is another option - to sell part of the product in bulk, and part of it at retail. At the same time, it is very important to build up a client base by increasing the number of potential buyers.

Perfect location

Foam plastic production as a business should be opened in a place where there are no competitors within a radius of at least 100 km. It is the manufacturers that need to be considered. The sale of polystyrene in stores is not taken into account. It is important to evaluate your closest competitors by considering the following features:

• wholesale and retail prices;
• product quality;
• product varieties;
• availability of discounts and loyalty programs ;
• availability of additional services (for example, free delivery, measurements, calculations).

It is better to focus on those regions where the demand for foam plastic significantly exceeds supply.

Foam production is somewhat of a seasonal business. During periods of lack of demand, you can retrain into a company for the manufacture of foam products.

Finding a room

It is important not only to evaluate competitors, but also to choose the right premises for opening your own mini-plant for the production of foam plastic. To work you will need:

Foam production is not easy, but profitable. This material, being unique, is used on a daily basis in various industries. Consider a step-by-step plan for opening an enterprise that manufactures it.

Main activity

Before starting the development of a business plan, you need to understand the products of production. To do this, we will provide a little information about the foam in order to accurately understand the formulation and purpose of this material.

• Polyfoam (Expanded polystyrene) - insulation material, usually white.
• 98% air.
• The main function of the material is protective.
• Special properties: extraordinary lightness, flexibility, low density.
• Thanks to these characteristics, the material is excellent for heat and sound insulation works.

In Russia, the most widespread is polystyrene foam made in accordance with GOST 15588-86. Also, it is white, odorless. It looks like a lot of small sized balls glued together that have a fairly high elasticity. For 50 years, construction has been using polystyrene foam as the most practical and cost effective solution for homes.

Polystyrene is usually called a neutral substance. It has no shelf life, does not emit harmful substances, does not decompose. Temperature cannot negatively affect the material in any way. In addition, polystyrene transfers moisture, in contact with gypsum solutions, cement and other solid compounds.

However, there is one drawback for the product under study - exposure to direct sunlight contributes to a significant increase in the fragility of the foam, which reduces its strength by 1.5 times. Therefore, it is necessary to store polystyrene in places where there is no sunlight.

Consider the industries that are directly related to the production of foam with further use:

• Shipbuilding (insulation measures when creating a ship frame);
• Trade - used to create packaging products of various densities;
• Construction in general uses foam as thermal insulation, soundproofing houses, as well as decorative fabrications;
• Medicine widely uses the material under study to create special containers used for organ donation;
• Household appliances - refrigerated chests, rescue vests and stuff.

As you can see, foam is used in all the most demanded industries. This fact is decisive when creating such a business.

Instructions on how to open and what you need

Having dealt with the theoretical part of the proposed business, we bring to your attention the instructions for opening an enterprise engaged in the production of foam plastic.

Foam production is a great business idea. This material is used in many areas of life and is widely in demand in our country. The business of manufacturing such products, although it requires large investments, is justified quite quickly. The entire foam production line can be placed in a small area. Polyfoam, due to its performance, will be in demand for a long time.

Step Assessing the consumer demand market

Raw materials for the production of foam - polystyrene granules. There are two technologies for the production of material based on these granules. They differ in the finished material obtained at the exit. It can be extruded or expanded polystyrene. Each material has its own characteristics and scope. But extruded polystyrene is more difficult to produce. And the equipment costs will be completely different.

Polyfoam is a material that is often used as insulation. It is cheaper than mineral wool-based insulation. Almost 20% of the entire market for foam production is focused on the manufacture of insulation.

Scope of this material:

• Construction. It is used as thermal insulation for walls, floors and ceilings.
• Trade. It is used as a packaging material.
• Production. It is used in the manufacture of some types of furniture, refrigeration equipment, clothing and other products.
• Shipbuilding. Polyfoam forms the basis of pontoons, boats and buoys.
• Outdoor advertising. This material is used to make letters and other promotional items.

In our country, polystyrene foam GOST 15588-86 is especially popular. It has a wide range of applications. Therefore, when evaluating the potential market, stop at the manufacture of foam of this modification. This is an environmentally friendly material (often used for food containers). It does not emit odors and harmful substances. Its service life is unlimited.

Before you start purchasing equipment and looking for a place to manufacture foam, it is important to assess the consumer market. To do this:

• Identify the potential for using foam in your area.
• Find out more information about the competitors of your future business.
• Conduct a strength analysis for your production.

Polyfoam is in high demand. The consumption rates of these products depend on the construction market. If the pace of construction in your region is at a high level, then the demand for your products will be high. Especially if you can realize the competitive advantages of your products.

At the moment, even in the largest regions in the peak period there is a shortage of foam. Therefore, this type of business is quite relevant and will help you get on your feet.

Step Assessing the supply market

The foam market is booming. Cellular plastics are in great demand in various sectors of life. As market research shows, last year alone it grew by 3.7%. But until now, the operating enterprises cannot cover the need for the entire expanded polystyrene market. Market analysts believe that the driver for further growth in this segment will be the hardening of legislation on the use of thermal insulation. Polyfoam, as an environmentally friendly material, will only strengthen its position after the introduction of new requirements.

The area of ​​use of foam is very wide. The limits of operation are not limited to packaging, as most citizens think. Polyfoam is massively used in the construction and finishing industry, medicine, various industries, etc. This leads to the logical conclusion that the activity of producing foam is a profitable business project that even young entrepreneurs can implement. A prerequisite for a successful start is a business plan for an enterprise for the production of polystyrene, because without thoughtful step-by-step measures for organizing the project and financial calculations, the idea may collapse already at the preparation stage.

Description of the business idea, its relevance and benefits

The goal of the project is to organize a foam plastic business in a city with a population of 500,000 or more.

Project type - own mini-plant, with an area of ​​200 sq. m.

Funds - a loan or attraction of a sponsor. The minimum budget is 2.5 million rubles.

The essence of the business idea is simple - investing in the organization of a mini-plant for the production of foam, purchasing raw materials and selling the finished product through wholesale networks.

The relevance of the business is explained simply, foam is used in areas such as:

• the metallurgical industry - the creation of insulated pipes and other metal structures that require thermal insulation;
• tailoring - the use of foam as insulation;
• medicine - manufacturing of containers for various needs, including transportation and storage of medicines;
• architecture - making models;
• construction - using foam as insulation and sound-insulating material;
• logistics, trade - packaging material;
• other areas of production - furniture, disposable tableware, etc.

Despite the fact that there are several large plants for the production of foam plastic in Russia, the relevance of small and medium-sized businesses of regional importance in this area does not cease to be relevant.

• Demand for products - foam, in fact, is considered a consumable material used for packaging and insulation. The wide demand is explained by the low cost and massive use for various needs, which cannot be said about other materials with similar characteristics.
• Ease of production - modern equipment allows you to easily produce the required amount of products of any shape and quantity, depending on the wishes of the customer.
• Environmental friendliness - the foam is made from environmentally friendly materials, which cannot be said about the chemical compounds of alternative products with similar characteristics.

Help. The main advantage of the foam plastic business is the minimum cost of raw materials with a high margin on the final product. This results in high income and quick payback of the project.