Project Feasibility Study

Technoconsult Group for Engineering Works

Projects Management Department

Project Feasibility Study

For

Rebar rolling mill Capacity 150000 Tons/year

Introduction:

The project is intended to produce hot rolled steel rebars ( both plain and ribbed ) according to the Egyptian standard specifications . Estimated production capacity is 150000 Tons/year (Tpy).

Project main data :

- Production capacity

: 150000 Tpy

- Raw material

:Billets of square cross-section 100 x 100 mm up to 130x130 mm and length up to 3000 mm

- Production variety

:Rebar of 10mm to 25 mm in diameter

- Needed electrical power:6

MW

- Needed Water

:500

m3 / day

- Total Capital Needed

: 55089 MLE

- Capital Expenditure

:36950

MLE

- Working Capital (One month):18094

MLE

- Project duration

: 12

months

- Land Area needed

: 26646 square meters

- No. of administration crew :

employees

- No. of technicians

:

employees

TABLE OF CONTENTS

Section 1 : Technical Study

1.1. Project Introduction

1.2. Project Raw materials , utility and production supplies needs

1.3. Capital Expenditure details

1.4. Manufacturing expenses details

1.5. Overall capital needed for the project

Section 2 : Financial Study

1.1. Project Introduction :

1.1.1. Production Capacity :

The estimated production volume of the plant is 150000 Tpy of steel rebars (both plain and ribbed ) according to Egyptian standard specifications , rolled from billets ranging from 100x100 mm to 130x130 mm . The capacity calculation assumptions are :

- Mean mill production capacity : 30 Tons/hr

- Net working days

:300 days

- No. of shifts

:3shifts/day

- No. of net working hours

: 7200 hours

- Average process reliability

: 75%

- Actual production hours

: 5000 hours

- Annual production

: 150 Tpy

- Product type

: Ribbed rebar

- Product size variety

: 10 25 mm

- Product Length

:12 m

The following table indicates the actual capacity of the line for the different sizes :

Product Size (mm)Weight of linear meter (LM)Rolling speed (m/s)Production rate (Tons/hour)

100.6161226.6

120.8888.627.5

161.875528.2

192.2253.830.4

22 and up2.9843.133.3

The table above indicates that the production line can deliver more than 30 Tons/hour at certain sizes .

1.1.2. Land and Utility needs :

1.1.2.1 Area of land and buildings :

Total Area

:

37440

m2

1.1.2.2. Utilities and services :

i. Electrical power :

- Connected power :

6

MW

- Voltage

:

11(20)KV

ii. Industrial water :

- Utilization rate

:

120

m3/dayiii. Domestic sewage :

Utilization rate

:

120

m3/dayiv.No of telephone lines :

3

lines

1.1.3 Main production equipment :

i. Reheating furnace :

- Capacity

:

30 Tons/hour

- Type

:Hydraulic pusher type

- Fuel

:Diesel / natural gas

- Firing method

: Air atomization (for diesel)

- Size of used billets :100x100 130x130 mm up to 4 m long

ii. Roughing mill area :

Electrical motor ( either slip-ring or DC ) .

Flywheel complete with bearings and flexible couplings Speed reducer (gear box ) Pinion cage Cardanic spindles between gear box and pinion cage No. (1) three high roughing stand complete with entry and delivery guides Forced lubrication unit No. (1) fixed roller table complete with rollers and accessories No. (1) tilting roller table complete with rollers and accessories iii. Intermediate mill area :

No. (4) rolling stands complete with entry and delivery guides

Gear box Pinion cage Cardanic spindles between pinion cage and stand On stand instrumentation Forced lubrication unit Stands are driven via DC motors iv. Finishing mill area :

No. (6) finishing stands (roller bearings type) complete with entry and delivery guides

Gear box unit reducing speed and acting as pinion cage

On stand instrumentation

Cardanic spindles

Forced lubrication unit

Stands are driven via DC motors

v. Pinch roll :

To transfer the finished product from the rolling mill to the cooling bed .

vi. Flying shear :

To cut-to-length the rebar at 24 m to allow for entry to cooling bed

vii. Cooling bed :

Rebar receiving system and delivery to cooling bed

Mechanical cooling bed 30 m long

Accumulating roller table to enter the cold shear

viiiCold shear :

To cut the rebar to either 6 or 12 m lengths

ixBundling and tying equipment .

1.1.4. Utility equipment :

1.1.4.1. Industrial water treatment plant :

Pumping station

Filters

Piping and fittings

Total capacity of 300 m3/hour

Make-up rate for water 5 m3/hour

1.1.4.2. Compressed air station :

No. (2) air compressors 1500 l/min at 6 bar

Piping and fittings and filters

Drying unit

Receiving tank 4 cubic meters

1.1.4.3. Fuel pumping station :

No. (2) gear pumps

Control and metering equipment

100 cubic meter fuel tank

Daily tank

Pipes and fittings

1.1.4.4. Over-head cranes :

Rolling mill cranes :

- capacity

:10 Tons

- Span

:20m

- Hook travel

:8/10m

- Number of cranes :2

Shipping bay cranes :

- Magnet capacity

:5Tons

- Span

:20 m

- Hook travel

:8/10m

- No. of cranes

: 2 (equipped with magnets)

1.1.4.5. Maintenance work-shop:

Rolls grooving lathe

Notching machine

Conventional lathe 2 m

Spark erosion trade mark machine

Milling machine

Shaping machine

Drill

Reciprocating saw

Hand tools

Work-shop tables

Electric arc welding machines

1.1.4.6 Testing laboratory :

Tensile testing machine

Hardness tester

Scale

Measuring tools

1.1.4.7 Weighing bridge :

Capacity 100 Tons

1.1.4.8. Fire fighting system :

Hand-held fire extinguishers (Carbon dioxide and powder filled)

Transformers room fire fighting equipment

Fire fighting loop and pumps

1.1.5. Transportation and handling equipment :

No. (1) 1.5 Tons capacity truck

No. (2) cars

No. (1) fork truck

1.1.6. Transformers station :

Transformers :

- No. of transformers

: 2

- Capacity of Transformers : 1.5 MW

- Inlet Voltage

: 11(20)KV

- Exit Voltage

:400/500 V

Medium voltage panels 11(20) KV

Low voltage panels

Operation and PLC panels

1.1.7. Civil Works :1.1.7.1. Land leveling works :

Will be determined after selecting the site

1.1.7.2 Fencing and internal roads :

Fencing :

Total length

: 788m

Height

:3m

Type of fencing

: Concrete frame + brick walls

Security Buildings

Internal Roads :

Area

: 6800 m2

Type of roads

: Asphalt paved roads

1.1.7.3. Rolling mill bay :- Length of bay

: 180m

- Width of bay

:20m

- Area of bay

:3600 m2

- Type of building

: Steel Structure

- Approx. weight of structure

: 400 Ton

- Corrugated sheet area

:6600m2

1.1.7.4. Furnace bay :

- Length of bay

:330m

- Width of bay

:20m

- Area of bay

:6600 m2

- Type of building

: Steel Structure

- Approx. weight of structure

: 350 Ton

- Corrugated sheet area

:8400m21.1.7.5. Raw material and finished product ware-houses:- Total area

:17600m2

- Type of building

: Open yards

- Floors

: Compressed soil

1.1.7.6. Foundations + machine foundations and floors :- Excavation

:9600 m3

- Back-filling

:2000 m3 Reinforced concrete :

- Steel structure foundations :800 m3 - Machine foundations

:1560m3

- Trenches for cables and pipes : 360 m3

- Total reinforced concrete :3120 m3

Plain concrete for a/m works :1300 m3 Floors (25 cm thick) Area

:9600m2

Note : These amounts are approximate and will be revised after selecting the land and gathering proper data regarding the typology of the land .

1.1.7.7. Other Buildings : Administration Building and dressing rooms :

- No. of floors

:3

- Area of each floor

:160m2 - Total Area

: 480m2 Transformers station :

- Needed area

: 720m2 Work-shops and store rooms :

- Needed Area

: 1640m2 1.1.8. Installation works :

1.1.8.1 Mechanical installation :

Installation supplies ( anchors , grouting material , bolts and hand-tools )

Machine laying and anchoring works

Piping works for fuel , compressed air and water including fittings

Trained labor

Cranes and handling equipment

1.1.8.2. Electrical installation :

Installation supplies including cables ,wiring , cable trays and connections and fittings etc.

Trained labor

1.1.9. Pre-operational expenses : Hiring reputable specialized technical firms as consultants

Issuing needed approvals and licenses from governmental authorities

Construction follow-up

Hiring the needed management and technical staff

Contracts finalization for equipment

Miscellaneous managerial and technical tasks

Travel and training for technology transfer

1.1.10. Furniture and office equipment :

Office furniture

Computers

Telephones and Fax

Dressing room lockers

First aid equipment

1.1.11. Technical support :

Design and planning for the project

Local manufacturing supervision

Construction supervision and commissioning

1.1.12. Working force (Management and technical teams ) :

AreaNeeded No.

Production Department :

Production manager

Production engineers

Crane operators

Furnace operators

Rolling mill operators

Pulpit operators

Cooling bed crew

Tying machines operators

Finished product area

Department total : 1

4

9

6

15

6

12

6

6

65

Mechanical Maintenance :

Maintenance Manager

Maintenance engineers

Maintenance technician

Work-shop crew

Cranes maintenance crew

WTP maintenance crew

WTO operators

Department Total : 1

3

12

2

1

3

3

25

Electrical Maintenance :

Maintenance Manager

Maintenance engineers

Work-shop crew

Motors maintenance technician

Electrical technician

Department Total :1

4

1

1

12

17

Ware-houses :

Ware-house manager

Ware-house attendant

Weigh bridge operators

Department Total : 1

6

3

10

Quality Assurance :

Quality Manager

Lab operator

Line quality operator

Department Total : 1

-

6

7

Technical Office :

Manager

Supervisor

Department Total : 1

1

2

Work-shop :

Engineer

Lathe operator

Notching machine operator

Facing machine operator

Milling machine operator

Helper

Department Total : 1

6

2

1

3

1

14

Cylinder work-shop:

Supervisor

Technicians

Department Total :1

6

7

Guides Work-shop :

Engineer

Technicians

Department Total : 1

5

6

Cleaning crew :

Cleaner

Tea boy

Gardner

Department Total : 6

2

2

10

Security :

Supervisor

Security crew

Department Total : 1

12

13

Administrative manager 1

Accountants 2

Personnel 2

Plant Total : 180

Project Raw materials , utility and production supplies needs :

1.2.1. Billets :

- Needed volume

: 150000Tons

- Manufacturing losses

: 5-6

%

- Total billets needed

: 158000Tons

Note : The losses of 5-6% consist of oxides inside the re-heating furnace + the head and tail cropping and these are divided as follows :

2% oxidation rate inside furnace

3% head and tail cropping and defined in-process losses

1.2.2. Electrical Power :

- Connected power

:6

MW

- Needed Voltage

:11(20)KV

- Needed power for rolling / Ton :120

KWh/Ton

- Average yearly power consumption:18

MMKWh

1.2.3. Industrial water :

- Water consumption rate

: 5

m3 / hour

- Yearly consumption

:40000m3 / hour

1.2.4. Fuel :

- Diesel oil

: 4800

Tons/ year

or equivalent in natural gas

1.2.5. Lubricants :

- Oils

: 145

barrels/year

- Greases

:20

barrels/year

1.2.6. Production supplies :

Rolling cylinders

Rolling guides for all stands

Complete spare rolling stands ( including cylinders , bearings and guides )

Transmission belts , hoses , oil and water seals

Maintenance supplies for compressed air system and control valves

Work-shop supplies

Pipes , valves and fittings

Chains and power chains and accessories

Contract manufacturing

Miscellaneous 1.2.7. Spare parts : Mechanical spare parts for rolling equipment ( gears , flexible joints, cardanic spindles ..etc .)

Electric and automation spare parts

Spare electric motors

Bearings for gear boxes , stands , pinion cages , guides and utility equipment

Cranes and handling equipment spare parts

Spare refractory materials for the furnace

Miscellaneous

1.3. Capital Expenditure details :

1.3.1. Land :

- Area

:

26646

m2 - Price

:

281.49LE/ m2

Total land price

:

7500

MLE

1.3.2. Utilities :

1.3.2.1. Electricity :

- Connected Power :

6

MW

1.3.2.2. Industrial water :

- Consumption

:

120

m3 / day

1.3.2.3. Domestic sewage :

- Discharge rate

:

300

m3 / day

1.3.2.4. Telephones :

- No. of lines

:

3

lines

Total Utilities

:

3250

MLE

1.3.3. Main production equipment :

Re-heating furnace and accessories

Rougher unit and accessories

Intermediate rolling mill and accessories

Finishing rolling mill and accessories

Different shears

Maintenance work-shop

Water treatment plant

Fuel station

Cooling bed and accessories

Transformers , E-panels and control panels

Transportation , customs clearance and sales tax .

Total Equipment

:

12864

MLE

1.3.4. Transportation and handling equipment :

Truck

Fork-truck

Two passenger cars + ambulance truck

Total Transportation

:

180

MLE

1.3.5. Civil works :

1.3.5.1. Steel Structures :

- Area

:

13200m2 - Weight

:

750

Ton

- Corrugated sheets :

16800m2 1.3.5.2. Land leveling works :

- Area

:

60000m2 1.3.5.3. Fencing and internal roads :

- Length of fencing :

960

m

- Area of fencing

:

4100

m2 1.3.5.4. Foundations and floors :

- Re-inforced concrete :

6700

m3 - Plain concrete

:

1440

m3

- Floors

:

9600

m3 1.3.5.5. Billets and re-bars ware-houses :

- Area

:

5600

m2 1.3.5.6. Other Buildings :

- Total Area

:

2110

m2

Total Civil Works

:

7350

MLE

1.3.6. Construction Works :

- Electro-mechanical installation :

3500

MLE

1.3.7. Pre-operational Expenses :

- Total Pre-Ops expenses :

26

MLE

1.3.8. Furniture and office equipment :

- Total

:

30

MLE

1.4. Manufacturing expenses details :

The total manufacturing expenses per Ton of finished re-bar ready for shipping is 1383.25 LE on average and following are the details :

1.4.1. Direct Expenses :

The direct expenses are 1371.37 LE on average , consisting of the following :

- Raw materials :

- Weight of billet to produce one Ton:1.05Tons

- Billet cost/Ton

:1225LE

- Total expense

: 1286 LE/Ton

Electrical Power :

- Power needed to roll one Ton

:118 KWh

- Price of KWh

:0.20LE

- Total expense

:23.50 LE

Fuel :

- Fuel needed / Ton

:17Kg

- Total expense

:6.80 LE

Industrial Water:

- Consumption / Ton

:0.50m3 /Ton

- Price of cubic meter

:1.00LE

- Total Expense

:0.50LE

Lubricants :- Consumption / Ton

:0.10Kg

- Average cost of Kg

:5LE

- Total Expense

:0.50 LE

Spare parts and production supplies :

- Cylinders and guides

:12LE

- Spare parts

:8LE

- Tools and work-shop equipment :3LE

- Contract manufacturing

:4 LE

- Miscellaneous

:5LE

- Total Expense

:32 LE

Wages and Benefits :

- Total wages / year

:1608MLE

- Total Expense

:7.12LE

- Depreciation :

- Depreciation / Ton

:14.70LE

- TOTAL DIRECT EXPENSES /TON:1371.37 LE

1.4.2. In-Direct Expenses :

The in-direct expenses /Ton are 11.88 LE and following are the details:

- Salaries :

- Total yearly salaries

:750MLE

- Total Expense / Ton

:5LE

Administrative and general expenses :

Payments for financial controllers

Legal fees

Bank charges

Advertisement and campaigns

Mail and telephones

Office supplies

Travel expenses and accommodation

Treatment and medication

Total yearly Expenses

:580MLE

Expense per Ton

:3.85LE

In-Direct Depreciation :

- Consultancy (20%)

:5.20MLE

- Technical support (20%)

:300 MLE

- Deferred .. (20%):150MLE

Total In-Direct Expenses per Ton

:11.88 LE

Summary of Expense / Ton:

Direct Expenses

:1371.37 LE

In-Direct Expenses

:11.88

LE

Total Manufacturing Expenses per Ton:1383.25LEProperty of Technoconsult Group , not to be copied or disclosed prior to written approval