Strategic Issues: Technology And Economics Of Manufacturing

THE FAST GROWING'WOOD PLASTIC COMPOSITES'– WPCs are produced by mixing wood flour / fiber and plastics to produce a material that can be processed like a conventional plastic, but has the best features of wood and plastic.Viewed from the perspective of international manufacturing, the Indian economy is seeing a dramatic resurgence. India sees itself as having'missed-out'on high technology manufacturing and is determined to build its capabilities. A lot of wood residue from wood processing industry and waste plastic is generated, which is not put to good use. The production of WPC enables Indian manufacturers to engage in high technology manufacturing and utilize raw materials to produce eco-friendly products.This thesis is broadly divided into two parts consisting of WPC Technology and Economics. The technology part explains fundamentals of raw-materials, processing and equipment required for WPC. The economics part deals with the market opportunities and trends of WPC products with special focus on availability of raw-material and cost of manufacturing WPC decking in India.The research was carried out by review of literature, factory visits and face-to face dialogues with various scholars, participation in WPC extrusion experiments and researchers for complete understanding of raw-material requirements and their formulations for different applications. Understanding of the existing situation and need for new developments related to machinery and equipment from machine manufacturers. Analysis of the information gathered in the above phases is used to draw an economically profitable business plan for the manufacturing of WPCs in India.The economic analysis is based on fundamental of economics such as profit and loss statement, personnel plan, risk assumptions, break-even, equipment costs, working capital requirements, depreciation, key investments and startup capital requirements.Based on above research I give the folllowing Results:All cellulose-based fillers for WPC, such as wood flour, sawdust, and rice hulls, are natural materials, containing cellulose, hemicellulose, and lignin. Wood flour is finely divided ground wood having a flour-like appearance. Wood flour that is typically used in WPC has mesh size of about 40, that is, about 400μm. Despite unfavorable mechanical properties of polyethylene compared to Polypropylene, PVC, ABS, and Nylon, HDPE is the most popular plastic for WPC decking. Coupling agents are the most important addives in WPC manufacturing as they improve the compatibility between cellulose fiber and polymer matrix, aid in fiber dispersion, hence, provide a better flow ability of hot melts and enhance mechanical properties of WPCs.Extrusion is the most common processing technology and WPC can be extruded to high dimensional tolerances, are tough and stable products. The new WPCs are high technology products for the most demanding applications.WPC manufacturing has a Gross Profit margin of ~29.66 % and a net profit margin of ~13%. The unit will most probably recover initial investments within 2.5 to 3 years of production. Our largest Start-up Requirement is the building of the storage, palletizing and extrusion facility. Its final value at completion is listed below as a long-term asset of US$ 260,000. Raw Material Cost of Wood Plastic composite per ton using virgin HDPE is US$ 915 / ton. This is the best time for Indian companies to start manufacturing of WPC decking as the share of WPC decking in the market is forecasted to grow to more than 30% in 2011.