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The compact particleboard plant concept is based on the
distinct advantages of operating in small local or regional
markets. The compact plant has a number of decisive advantages
compared to a new stand-alone plant.
Existing infrastructure
The compact plant can utilize an existing infrastructure,
whether organizational or technical. When built near an existing
mill or plant, the administration, maintenance departments and
workshops need not be duplicated.
Lower transportation costs
Transporting upgraded material is far more economical than
transporting waste. The compact plant is close to the raw
materials. When it is integrated with other units, all other
transportation and maintenance costs can be coordinated.
Custom-made for available raw material
The compact plant is designed to exacting local conditions.
The supply of raw materials determines the size of the
installation.
Low investment costs
The compact plant is easily adapted to local conditions, which
in turn yields low investment and maintenance costs. The plant
provides conditions for high returns on investment capital.
Easy to operate and maintain
The simplicity of the plant makes it easy to operate and
maintain. With trained personnel on a few key positions, a
largely unskilled labor force can be employed.
Local knowledge is a strength
In the small plant, the staff will have close relationship to
local end users. This helps them to easily discern new market
trends and needs for new products.
Easy to expand vertically
The compact plant can easily be expanded by commencing
manufacturing of downstream products for the construction and
furniture industries. The market and returns can increase, for a
proportionately low capital investment.
Lower sales prices for conventional plants
Large conventional particleboard plants will not, in most
cases, enjoy these advantages. Their transportation costs for raw
materials finished goods, and miscellaneous services will be
higher on a per unit finished goods basis, and the average sales
prices will tend to be lower.
Furthermore, their marketing personnel may not have the close
and intimate knowledge of the end user markets.
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