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Plastics

 

 

 

 

 

 

 

 

 

 

Investment Opportunities in Plastics Industries

 

bulletBaby Walker
bulletBaby Walkers & Cycles, Amusement Games, Various Children Toys & Games
bulletBathroom Accessories
bulletCold Water Plastic Containers
bulletCrates
bulletCrates, Fertilizer Dispensers, Plastic Boxes
bulletCutting Boards
bulletDiaper Film
bulletDisposable Hospital Items
bulletFarming Boxes
bulletHoses
bulletLighters
bulletMedical Plastic Tubes, Thermometer Plastic Cup, Scalp Vein Set, Urinal Pots
bulletMedical Syringes
bulletMethyl Methacrylate & Polymethyl Methacrylate
bulletMilk Containers
bulletMisc. School Supplies
bulletNetting
bulletNon-Woven Film
bulletO-Ring Rubber
bulletNetting
bulletPipes
bulletPlant Covers
bulletPlant Stanchions & Clothes Hangers
bulletPlastic Appliances
bulletPlastic Bags
bulletPlastic Bags & Pipes
bulletPlastic Boards
bulletPlastic Buttons
bulletPlastic Covers
bulletPlastic Fences
bulletPlastic Funnels
bulletPlastic Granules
bulletPlastic Machines
bulletPlastic Pails
bulletPlastic Pallets
bulletPlastic Paper
bulletPlastic Poles
bulletPlastic Scrap
bulletPolycarbonate Resins
bulletPolypropylene Sheets, Polypropylene & Polyvinyl Sheets, Fruits and Vegetables Packing Materials, Polypropylene Cans, Plastic Files/Folders
bulletPlastic Road Safety Signs
bulletRubber Belts (1)
bulletRubber Belts (2)
bulletSchool Bags
bulletStretch Wrap
bulletTelephones and Accessories
bulletToys, Dossiers & Eclassiers, Office Supplies
bulletUnsorted Plastic Waste Recycling
bulletVacuum Jugs
bulletWater Heater Tubes and Connections

 

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Baby Walker

Manufacturing Method:  Injection Molding

Description  
Capacity

5.3 million units

Invested Capital SR 19 million
Annual Rate of Return of Investment 22.8%
Capital Recovery Period 3 years
Internal Investment Return of Paid-Up Capital 35%

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Baby Walkers & Cycles, Amusement Games, Various Children Toys & Games

Production Capacity:

Baby Walkers & Cycles -- 40,000 units
Various Children Toys & Gifts -- 40,000 units
Amusement Games -- 100,000 units

Total Investment Required:  $18,000,000

Contact:  Mr. Abdullah Karam Hafez, Al-Karm Toys Factory, P.O. Box 358, Makkah, Saudi Arabia  Phone:  966-2-550-0874  Fax:  966-2-550-0872

Source: Saudi Consulting House

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Bathroom Accessories

Manufacturing Method:  Thermal Molding

Description  
Capacity

320 million tons/year

Invested Capital SR 2 million
Par Point 56.26%
Capital Recovery Period 4 years
Annual Sales SR 7,480,000

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Cold Water Plastic Containers

Manufacturing Method: Outer by blow foaming; Inner by injection molding

Description  
Capacity

260,000 units

Invested Capital SR 25million
Return on Invested Capital 29%
Capital Recovery Period 4 years
Annual Sales SR 15.8 million

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Crates

Description  
Capacity

761 crates (90 tons/year)

Invested Capital SR 7.3 million
Return on Invested Capital 19.2%
Capital Recovery Period 3.5 years
Requirements of Feedstock 88 tons of HDPE

Source: Saudi Basic Industries Corporation

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Crates, Fertilizer Dispensers, Plastic Boxes

 

Description  
Capacity

4,800 units/year

Invested Capital SR 8.0 million
Return on Invested Capital 22.9%
Requirements of Basic Feedstock Polyethylene
Capital Recovery Period 3.1 years

Source: Saudi Basic Industries Corporation

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Cutting Boards

Manufacturing Method: Extrusion Molding

Description  
Capacity

370,575 cutting boards

Invested Capital SR 2.6 million
Return on Invested Capital 28.2%
Capital Recovery Period 2.75 years
Annual Sales SR 3,705,750

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Diaper Film

Manufacturing Method:  Blow Molding, Extrusion Cast

Description  
Capacity

780 million tons/year

Invested Capital SR 4 million
Internal Rate of Return (IRR) 30%
Payback Period 3.4 years
Annual Sales SR 7 million

Funding:   25 % self-funding
                  25 % commercial loan
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Disposable Hospital Items

Manufacturing Method: Extrusion Process

Description  
Capacity

15 million ton/year

Invested Capital SR 4.3 million
Return of Investment (ROI) 38%
Payback Period 2.8 years
Annual Sales SR 3.27million

Funding:   30 % self-funding
                  20 % other
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Farming Boxes

Description  
Capacity

1,500 boxes/year

Invested Capital SR 5.6 million
Return on Invested Capital 21.2%
Capital Recovery Period 3.3 years
Project Requirement of Feedstock 64.5 tons of HDPE

Source: Saudi Basic Industries Corporation

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Hoses

Manufacturing Method: Extrusion Foaming

Description  
Capacity

3,778 Washing Machine Hoses
421,980 Vacuum Cleaner Hoses
1,356 Swimming Pool Hoses

Invested Capital SR 3.6 million
Return on Invested Capital 24.9%
Capital Recovery Period 2.85 years
Annual Sales SR 2.9 million

Funding:   30 % equity capital
                  20 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Lighters

Production Capacity:

Lighters -- 13,000,000

Total Investment Required:  $800,000

Contact:  Mr. Farhan Al-Anezi, Saudi Lighters Factory, P.O. Box 87020, Riyadh 11642, Saudi Arabia  Phone:  966-1-230-3178  Fax:  966-1-246-0291

Source: Saudi Consulting House

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Medical Plastic Tubes, Thermometer Plastic Cup, Scalp Vein Set, Urinal Pots

Production Capacity:

Medical Plastic Tubes -- 1,080 tons
Thermometer Plastic Cup -- 290 tons
Scalp Vein Set -- 200 tons
Urinal Pots -- 100 tons

Total Investment Required:  $5,900,000

Contact:  Mr. Ghassan Zaki Osrah, Al-Nour Factory for Medical Supplies, P.O. Box 18503, Riyadh  11425, Saudi Arabia  Phone:  966-55-42-4429  Fax:  966-1-405-9735

Source: Saudi Consulting House

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Medical Syringes

Production Capacity:

Medical Syringes -- 150 million/pieces

Total Investment Required:  $7,900,000

Contact:  Mr. Ghassan Zaki Osrah, Gulf Factory for Medical Syringes, P.O. Box 18503, Riyadh  11425, Saudi Arabia  Phone:  966-5542-4425  Fax:  966-1-405-9735

Source: Saudi Consulting House

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Methyl Methacrylate (MMA) & Polymethacrylate (PMMA)

Production Capacity: 5,000 tons/year MMA & 15,000 tons/year PMMA

Project Costs:

Description SR
Installed Equipment 263,010,000
Civil/Building 16,140,000
Pre-production costs 36,950,000
Working capital 20,500,000
Total Investment (excluding land) 336,600,000

Financial Indices:

Description  
Operating Profit (Year 6) SR 62,250,000
Return on Investment 25-30%

Source: Gulf Organization for Industrial Consulting

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Milk Containers

Description  
Capacity

8.64 million plastic containers

Invested Capital SR 6.03 million
Return on Invested Capital 35.5%
Capital Recovery Period 2.2 years
Project Requirements of Feedstock 518.4 tons of polyethylene

Source: Saudi Basic Industries Corporation

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Misc. School Supplies

Description  
Capacity

School Bags -- 300,000
Rulers & Pencil Sharpeners -- 2 million
Geometrical Boxes -- 1 million
Pens -- 20 million

Invested Capital SR 9.75 million
Return on Invested Capital 9%
Project Requirements of Feedstock 2,500 tons of PVC or synthetic leather, acrilonitrile butadiene, styrene, polyethylene and polystyrene

Source: Saudi Basic Industries Corporation

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Netting

Manufacturing Method: Extrusion Molding

Description  
Capacity

4 Million Square meters

Invested Capital SR 85.7 million
Return on Equity 22.5%
Capital Recovery Period 3 years
Annual Sales SR 40 million

Funding:   30 % self-funding
                  20 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Non-Woven Film

Manufacturing Method: Extrusion Process

Description  
Capacity

2.5  million tons/year

Invested Capital SR 40 million
Internal Rate of Return (IRR) 13.63%
Payback Period 4 years
Annual Sales SR 31 million

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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O-Ring Rubber

Production Capacity:

O-Ring Rubber -- 200 tons

Total Investment Required:  $430,000

Contact:  Mr. Abdulrahman Al-Meshaigeh & Bros., Saudi Rubber Products Factory, P.O. Box 21599, Riyadh 11485, Saudi Arabia  Phone:  966-1-450-8432   Fax:  966-1-450-8166

Source: Saudi Consulting House

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Pipes

Manufacturing Method: Extension Molding

Description  
Capacity

8,000 linear meters/year

Invested Capital SR 12.3 million
Return on Invested Capital 22.1%
Capital Recovery Period 3 years
Annual Sales SR 18,000,000

Funding:   30 % self-funding
                  20 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Plant Covers

Manufacturing Method:  Form Molding

Description  
Capacity

4.5 million covers

Invested Capital SR 1 million
Return on Invested Capital 17%
Capital Recovery Period 3.9 years
Annual Sales SR 197,478

Funding:   self-funding
                  commercial loans
                 

Source: Saudi Basic Industries Corporation

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Plant Stanchions and Clothes Hangers

Manufacturing Method:  Form Molding

Description  
Capacity

Plant Stanchions 9.5 million

Clothes Hangers 3 million

Invested Capital SR 2 million
Return on Invested Capital 87.7%
Capital Recovery Period 1.1 years
Annual Sales SR 1,745,147

Source: Saudi Basic Industries Corporation

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Plastic Appliances

Production Capacity:

Plastic Appliances (drip irrigation systems) -- 1,800 tons

Total Investment Required: $1,000,000

Contact:  Mr. Bunayan Saqr Al-Dosary, Zahrat Al-Wadi Plastic Factory, P.O. Box 74, Wadi Al-Dawaser, Saudi Arabia  Phone:  966-1-784-1032  Fax:  966-1-784-1069

Source: Saudi Consulting House

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Plastic Bags

Production Capacity:

Heavy Duty Bags -- 2,800 tons

Total Investment Required: $2,700,000

Contact:  Mr. Mohammed Naif Bin Amoud, Al-Yamamah Plastic Factory, P.O. Box 3173, Al-Khobar 31952, Saudi Arabia  Phone:  966-3-894-8935  Fax:   966-3-898-0416

Source: Saudi Consulting House

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Plastic Bags & Pipes

Production Capacity: 

Plastic Bags -- 300 tons
Plastic Pipes -- 300 tons

Total Investment Required:  $540,000

Contact:  Mr. Abdo Ahmed Ali Al-Sharwani, Al-Sharwani Factory for Plastic Products, P.O. Box 215, Abu-Areesh, Saudi Arabia  Phone:  966-7-325-1261   Fax:  966-7-325-1261

Source: Saudi Consulting House

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Plastic Boards

Manufacturing Method:  Extrusion Molding

Description  
Capacity

625,000 plastic board

Invested Capital SR 13 million
Return on Invested Capital 21%
Raw Materials LDPE and Polypropylene
Annual Sales SR 8,125,000

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Plastic Buttons

Production Capacity: 200 tons

Project Costs:

Description SR
Land (annual rent) 240
Machinery 2,900,000
Raw Materials 1.200,000
Manpower (annual cost) 1,100,000
Capital (Fixed and Working) 6,076,000

Financing Sources:

Description Percent
Paid Up Capital 25%
Long Term Loans 50%
Commercial Bank Loans 25 %

Financial and Economic Indices:

Description  
Annual Revenues SR 4,666,000
Annual Profits SR 1,232,000
Return on Investment 20%
Capital Recovery Period 3 years, 9 months

Source: Riyadh Chamber of Commerce

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Plastic Covers

Manufacturing Method:  Extrusion Molding

Description  
Capacity

864 tons (180,000) covers/yr.

Invested Capital SR 12.5 million
Return on Invested Capital 19%
Return on Equity 42%
Payback Period 2.5 years

Funding:   25 % owned capital
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Plastic Fences

Manufacturing Method:  Extrusion Molding

Description  
Capacity

1,000,000 plastic fences

Invested Capital SR 13 million
Return on Invested Capital 20.6%
Capital Recovery Period 3.4 years from production commencement date
Annual Sales SR 8,000,000

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Plastic Funnels

Description  
Capacity

870 plastic funnels/year

Invested Capital SR 5.5
Return on Invested Capital 22.2%
Capital Recovery Period 3.1 years from production commencement date
Project Requirements of Feedstock 49 tons of polyethylene

Source: Saudi Basic Industries Corporation

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Plastic Granules

Production Capacity:

Plastic Granules (recycled) -- 7,200 tons/year

Total Investment Required:  $2,400,000

Contact:  Mr. Raed Al-Suwailem, Al-Diwan Plastic Recycling Factory, P.O. Box 1862, Al-Khobar  31952, Saudi Arabia  Phone:  966-3-899-3553  Fax:  966-3-899-3553

Source: Saudi Consulting House

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Plastic Machines

Production Capacity:

Plastic Machines -- 18 units

Total Investment Required:  $1,200,000

Contact:  Mr. Derzy Bin Naif, Rabo Al-Shemal for Plastic Machines, P.O. Box 33899, Jeddah 21458, Saudi Arabia  Phone:  966-2-681-4340  Fax:   966-2-681-4336

Source: Saudi Consulting House

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Plastic Pails

Manufacturing Method:  Injection and Blow Molding

Description  
Capacity

4.4 million (different sizes)

Invested Capital SR 22.78 million
Internal Rate of Return (IRR) 17.8%
Payback Period 4 years from production commencement date
Annual Sales SR 20,061,000

Funding:   25 % self-funding
                  25 % other
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Plastic Pallets

Production Capacity:

Plastic Pallets -- 500,000 pieces

Total Investment Required:  $1,400,000

Contact:  Mr. Faisal Mohammed Al-Aliwa, New Factory for Manufacturing Plastic Pallets, P.O. Box 4406, Jeddah 21491, Saudi Arabia  Phone:  966-2-653-5039  Fax:  966-2-651-8548

Source: Saudi Consulting House

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Plastic Paper

Applications:  For printing purposes in copy books, books, maps and valuable paper.

Proposed Productivity:  3,000 tons/year

Project Requirements for Basic Feedstock: HDPE

Total Investment:  SR 53 million

Source: Saudi Basic Industries Corporation

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Plastic Poles

Manufacturing Method:  Extrusion Molding

Description  
Capacity

869,500 plastic poles

Invested Capital SR 13 million
Return on Invested Capital 19.4%
Capital Recovery Period 3.5 years from production commencement date
Annual Sales SR 7,825,500

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Plastic Scrap

Products:  Plastic Resins
Proposed Capacity:  10,000 tons/year
Total Investment:  SR 20.3 million
Investment Average Return: 27.9%
Feedstock Requirements:  Polyethylene, Polypropylene, and PVC at 10,000/year

Source: Saudi Basic Industries Corporation

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Polycarbonate Resins

Production Capacity: 20,000 tons/year

Project Costs:

Description SR
Installed Equipment 316,500,000
Civil/Building 11,810,000
Pre-production costs 3,750,000
Working capital 13,010,000
Total Investment (excluding land) 340,570,000

Financial Indices:

Description  
Operating Profit (Year 5) SR 56,210,000
Return on Investment 20-21%

Source: Gulf Organization for Industrial Consulting

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Polypropylene Sheets, Polypropylene & Polyvinyl Sheets, Fruits and Vegetables Packing Materials, Polypropylene Cans, Plastic Files/Folders

Production Capacity:

Polypropylene Sheets -- 400 tons
Polypropylene & Polyvinyl Sheets -- 150 tons
Fruits & Vegetables Packing Material -- 336 tons
Polypropylene Cans for Food Stuff -- 160 tons
Plastic Files/Folders & Accessories -- 305 tons

Total Investment Required:  $4,000,000

Contact:  Eng. Abdulaziz Mohammed Al-Namlah, Manam Factory for Polypropylene Products, P.O. Box 29880, Riyadh 11467, Saudi Arabia  Phone:  966-1-477-4204   Fax:  966-474-3063

Source: Saudi Consulting House

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Plastic Road Safety Signs

Description  
Products

Pilot Panels, Light Signals, Paint on Asphalt, Barriers, Cats eyes, Balustrade 

Capacity

500 tons/year

Invested Capital SR 4.52 million
Return on Invested Capital 20.9%
Requirements of Basic Feedstock 600 tons of PVC and LLDPE

Source: Saudi Basic Industries Corporation

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Rubber Belts (1)

Production Capacity:

Rubber Belts -- 500,000 units

Total Investment Required:  $1,400,000

Contact:  Mr. Abdullah Bin Amir Al-Nahdi, Middle East Rubber Belts Factory, P.O. Box 75347, Riyadh 11578, Saudi Arabia  Phone:  966-1-446-4465  Fax:  966-1-446-4465

Source: Saudi Consulting House

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Rubber Belts (2)

Production Capacity:

Rubber Belts -- 500,000 units

Total Investment Required:  $1,066,000

Contact:  Mr. Said Mohammed Abu-ulait, Asir Rubber Belts Factory, P.O. Box 449, Khamis Mushait,  Saudi Arabia  Phone:  966-7-221-1841   Fax:  966-7-221-1764

Source: Saudi Consulting House

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School Bags

Manufacturing Method:  Coating

Description  
Capacity

3.3 million bags/year

Invested Capital SR 29,422 million
Annual Rate of Return of Total Investment 16.6%
Raw Materials PVC
Payback Period 4 years

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Stretch Wrap

Manufacturing Method:  Blow Molding

Description  
Capacity

1,440 Million Tons

Invested Capital SR 8.5 million
Return on Equity 31.6%
Capital Recovery Period 3.7years from production commencement date
Annual Sales SR 10.8 million

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Telephones and Accessories

Production Capacity: 300 tons

Project Costs:

Description SR
Land (annual rent) 640
Machinery 5,800,000
Raw Materials 7,500,000
Manpower (annual cost) 3,800,000
Capital (Fixed and Working) 14,782,000

Financing Sources:

Description Percent
Paid Up Capital 25%
Long Term Loans 50%
Commercial Bank Loans 25 %

Financial and Economic Indices:

Description  
Annual Revenues SR 18,000,000
Return on Investment 25.5%
Capital Recovery Period 3 years, 5 months

Source: Riyadh Chamber of Commerce

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Toys, Dossiers & Eclassiers, Office Supplies

Production Capacity:

Toys -- 300 MTA
Dossiers & Eclassiers -- 200 MTA
Office Supplies -- 167 MTA

Total Investment Required:   $3,000,000

Contact:  Mr. Abdulaziz Abdullah Al-Mushraf, Dalal Toys & Office Supplies Factory, P.O. Box 6202, Dammam 31442, Saudi Arabia  Phone:  966-3-826-8788 Fax:  966-3-826-5919

Source: Saudi Consulting House

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Unsorted Plastic Waste Recycling

Production Capacity: 10,000 tons/year

Project Costs:

Description SR
Installed Equipment 11,700,000
Civil/Building 2,160,000
Pre-production costs 1,860,000
Working capital 2,420,000
Total Investment (excluding land) 18,140,000

Financial Indices:

Description  
Operating Profit (Year 5) SR 3,640,000
Return on Investment 23-27%

Source: Gulf Organization for Industrial Consulting

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Vacuum Jugs

Production Capacity:

Vacuum Jugs -- 500,000 jugs

Total Investment Required:  4,600,000

Contact:  Mr. Ayad Rasheed Naser Al-Dosary, National Factory for Vacuum Jugs, P.O. Box 5182, Jeddah 21422, Saudi Arabia  Phone:  966-2-669-3566   Fax:  966-2-669-3569

Source: Saudi Consulting House

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Water Heater Tubes and Connections

Manufacturing Method:  Extension Molding

Description  
Capacity

900,000 linear meters

Invested Capital SR 6.5 million
Return on Equity 35.6%
Capital Recovery Period 4.8 years from production commencement date
Annual Sales SR 4.9 million

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

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Exchange Rate: US$1 = SR3.75

For more information about these opportunities, contact Saudi-Business-Center@The-Saudi.Net

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