FEASIBILITY ANALYSIS of STEEL BARREL PRODUCTION LINE

Import steel sheet, bottom and lid from China

General Information:

Generally speaking, import steel drum production line and steel sheet from China is much more profitable than manufacturing and producing in local.

The cost of steel drum mainly consists of steel sheets, painting material, fabrication. Steel sheet takes about 70% and the price of sheets is cheaper in China.

Business plan: Import steel sheet from China. Import bottom and lid from China. Fabricate the steel drum body and assembly and paint in local.

Manufacture 200L steel drum.

Cost Analysis:(Just for reference based on Chinese price)

Steel sheet CIF+tariff/ton: usd840

Sheet cost per one drum: usd840/1000 x 10.29kg(drum weight) =usd8.65

Bottom and lid CIF+tariff = usd6.195

Labor cost per drum: usd0.6

Paint cost and electrical cost per drum: usd1.1

One 200L steel drum cost in loacl is usd8.65 + usd6.195 + usd0.6 + usd1.1=usd16.55

Profit Analysis:

Fabricate 3000 steel drums per 10 hours every working day. Every year works 300 days.

Suppose price per drum in local is usd22

The total profit will be 3000 x 300 x usd(22-16.55) = usd4905000

Fabrication at local

As one conclusion, introduce our steel drum production line is a profitable project. The key points of the project are:

1. Import one complete automatic steel drum production line from China.
2. Import steel sheet from China if local price is higher
3. Import bottom and lid from China
4. Fabricate steel drum body in loacl and assembly and paint
5. CLIMA will send technicians from China to instruct production and train local workers.

The data above is only for reference and is influenced by current Chinese price. Should you be interested in our plant, please contact us and we will provide you the up-to-date feasibility analysis