3/16/2011 GoodRich Sugar

March 16, 2011

Introduction

Second generation Goodrich SUGAR & CHEMICAL COMPLEX LIMITED

technologies for
Sugarcane Complex
OFFERS
Turn-key Plants Offered PARTICLEBOARD PRODUCTION LINES
- Bleached CTMP Pulp / FROM CHINA & EUROPE IN PLANT CAPACITIES OF
paper unit 30,000 M3/YEAR, & 50,000 M3/YEAR & 80,000 M3/YEAR
- Particle board plant
- MDF ( Medium density
fibre) board plant

- Thin MDF ( Medium density

fibre) board plant
- Co-generation of electricity
& steam
- Biomass based power
generation
- Other projects based on Another view of Particleboard
A view of Particleboard Plant
sugar & by-products Plant

- Miscellaneous projects
- 36 Most lucrative projects
from China & Europe

Consultancy services
Offered

Contact Us

Main Production Line for Particleboard

Woodwaste ready for

Particleboard fibre arrangement
Particleboard production
INTRODUCTION -

Particleboard is a classic wood-based panel, made from high quality

particles of wood / bagasse. It is a low – density board with density
range from 650 kgs to 750 kgs per cubic meter.Partic leboard Plants are
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specially designed to produce an effective alternative for wood-based
panel products.

The Plant utilizes low – cost agri-wastes resulting in a high quality &
versatile panel product with virtually unlimited applications. Particleboard
is accepted universally.

MARKET FOR PARTICLEBOARD -

Industries that use Particleboard include construction and packaging. High

quality Particleboard has the strength, durability & screw-holding capacity
of near MDF, which makes it suitable for widespread use in the furniture
industry such as bedroom units, fitted kitchens, shelves & tables. It is
also used in household electrical appliances, laminate flooring, cabinets &
floor underlayment. Particleboard has good mechanical performance of
fine, neat & smooth finish. It meets the growing demand amongst
consumers & manufacturers alike for environmentally – friendly
alternatives.

Particleboard comes in 6 mm to 30 mm thickness & in the density range of

650 – 750 kg/m3. Average bulk density is 700 kg/m3 on the average
thickness of 18mm.

ADVANTAGES OF PARTICLEBOARD -

1. Low Capital investment & lower operating costs.

2. Low energy requirement

3. Readily available local raw material

4. Cheaper price than MDF

5. Low density & lower weight than MDF, which makes it suitable for
certain applications.

RAW MATERIAL FOR PARTICLEBOARD -

1.Small diameter wood logs,wood branches, dried leaves, saw dust,

veneer wastes, wood pieces, furniture wastes & other wood processing
wastes.

2. Sugarcane bagasse.

WOODY RAW MATERIAL FOR PARTICLEBOARD -

India has 19% of its land by way of forests. A wide variety of trees are
grown here, due to the availability of abundant solar energy. Hence a
number of Particleboard Plants can be set up in various parts of the
Country to convert these wood wastes into wealth. Since Particleboard
replaces wood & plywood, the pressure on virgin forests are reduced & a
new social forestry can be developed near the Particleboard Factory to
meet the future wood requirements.

PARTICLEBOARD FROM BAGASSE -

There are 450 Sugar factories in India. A 2,500 TCD Sugar Plant
generates 1,20,000 tons of bagasse with 50% moisture, in 160 days of
working. Much of this bagasse is burnt to fuel the boiler. Of late, the
surplus is used for power generation. Some sugar factories sell surplus
bagasse to the nearby paper factories.

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Bagasse is a valuable cellulose, which deserves better value-addition than
simple burning. The notional price of bagasse is Rs. 500/- per ton, which
may increase to Rs. 1,000/- per ton on co-generation. If the same is
converted into Particleboard, the price of the board will be Rs. 10,000 –
15,000 per ton.

Bagasse contains 30% pith, which is not suitable for making Particleboard.
The same can be used for the Boiler, along with baled sugarcane trash in
place of bagasse. It is possible to bale 80,000 tons of trash by a 2,500
TCD Sugar Factory in 160 days of working. With the de-pithed bagasse of
46,000 tons (with 50% moisture),a Particleboard production line of 30,000
m3/year can be run throughout the year.

GLOBAL MARKET SURVEY OF PARTICLEBOARD –

World Particleboard lines –

Key Areas No. of Capacity in Average mill

Production Capacity in m3
Lines 1000 m3
U.S. 54 10,726 1,99,000
Canada 17 3,797 2,23,000
Mexico 10 937 94,000
Europe 251 43,563 1,74,000
Rest of the world
- China 263 5,740 22,000
- North East

Asia 26 2,624 1,101,000

- South
East Asia
67 5,635 84,000
- Other Asia * 35 2,127 61,000
-Latin/ south

America 53 5,157 97,000

- Africa 21 1227 58,000
- Australasia 18 1130 63,000
Totals 815 82,663 World Average

1,01,000 m3

* Including India.

In China, around 200 mills were built by using Chinese Plant & Equipments,
with total capacities of 3 million m3.In the rest of Asia, the largest
number of mills are found in Pakistan, Iran & India, but the Indian total
capacity is insignificant. However, discussions with some of the mills
suggest that demand for Particle Board is high & the Indian Sugar
Industry could provide sufficient bagasse for more than 2 million m3 of
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future capacity.

The Particleboard capacities in Europe, country-wise are given below –

No. of
Estimated Average
linesCapacity Plant size in
in 1000 m3
m3
Europe (EU member countries)
Austria 12 2427 2,02,000
Belgium 15 3360 2,24,000
Denmark 1 350 3,50,000
Finland 3 650 2,17,000
France 19 4496 2,37,000
Germany 28 8465 3,02,000
Greece 8 560 70,000
Ireland 1 140 1,40,000
Italy 27 4500 1,67,000
Portugal 4 1010 2,52,000
Spain 18 2945 1,64,000
Sw eden 6 810 1,35,000
U.K. 12 2945 2,45,000
Europe (Outside EU)
Czech
Republic
3 840 2,80,000
Estonia 2 150 75,000
Lithuania 2 180 90,000
Latvia 2 200 1,00,000
Norway 5 475 95,000
Slovenia 3 200 67,000
Slovakia 2 380 1,90,000
Sw itzerland 2 600 3,00,000
Turkey 27 1800 67,000
Poland 9 2240 2,49,000
Hungary 2 440 2,20,000
Romania 9 900 1,00,000
Russia 29 2500 86,000
Total 251 43563
European average 1,74,000
m3

As per the statistics available, there are 14 Pre-laminated/Plain Particle

Board manufacturers in India, with a built-up capacity of around 3,00,000
m3 as under-

Plain Pre-laminated Particleboard plants in

India –

1. Aurobindo, Nagpur

2. Bakelite Hylam, Chandrapur

3. Bharat Boards, Itarsi

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4. Daulatt SSK, Halkarni

5. Eco-board Ltd., Pune

6. Leo Laminates, Hyderabad

7. Mysore Chipboards, Mysore

8. Novopan , Hyderabad

9. Nuboards, Moradabad

10. Cosmic Crafts, Meghalaya

11. Patil Boards, Surat

12. Shivdhan Industries, Nagpur

13. Sri Satpada Tapi Parivar SSK, Dhule

14. Wilson Boards, Kolhapur

INDIAN MARKET POTENTIAL FOR PARTICLEBOARD –

The Working Paper by FAO estimated the demand for industrial round
wood in India (other than fuel wood) as under –

Wood raw material requirement in India -

(in million cubic meters)
Sector Year Year Year
2000 2005 2010
Saw nw ood 47.00 50.00 54.00
(For housing, furniture,
agri-implements, sports
goods, packaging, etc.)
Pulp (Paper, newsprint) 23.60 28.50 35.00
Plyw ood 1.45 1.69 1.92
Particleboard 0.34 0.49 0.65
Fibrew ood (Hardboard) 0.22 0.32 0.41
MDF 0.40 0.67 0.95
Total 73.01 81.67 92.93

As per FAO, the requirement of sawnwood by 2005 will be around 50

million cubic meters, which is equal to Rs. 60,000 c rores in monetary
terms. As against this, the availability of sawnwood in India is only 47
million cubic meters & some quantity is imported, draining valuable foreign
exchange.

Bulk of the industrial round wood in India is utilized by the saw milling
industry, consisting of more than 23,000 units. It is estimated that each
sawmill will generate 100 – 120 tons of sawdust & wood cuttings per year
on an average and make available totally 2.5 million tons of wood wastes,
whic h can provide necessary raw material for more than 50 new
Particleboard Plants in India.

The projected demand for Particleboard by 2005 is 4 90 000 cubic meters

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The projected demand for Particleboard by 2005 is 4,90,000 cubic meters,
whereas the combined Capacity of the Plants operating in India is
only3,00,000 cubic meters. The shortage is covered by Particleboard
imports at high prices.

PROCESS DESCRIPTION FOR PARTICLE BOARD –

The Particleboard production line mainly includes Material preparation

section, Drying, Screening, Resin blending, Mat forming, Hot pressing,
Edge trimming & Sanding. The process also needs Energy supply by way
of Steam / Hot oil & Electricity.

SCOPE OF SUPPLY – PLANT & MACHINERY OFFERED FOR

PARTICLEBOARD PROJECTS –
Particleboard production line complete with more than 100
individual equipments lined up for continuous production, 1
1. -
with a capacity of 30,000 m3/year (21,000 tons), 50,000 set
m3/year (35,000 tons) or 80,000 m3/year (56,000 tons)
Formaldehyde (optional) & UF Resin Plants including 1
2. -
reactors, storage tanks & pipelines set
2-
Short cycle lamination Plant for overlaying melamine coated
3. - 5
paper on Particleboard
sets
2-
Horizontal Impregnation line to coat melamine on the Plain
4. - 5
paper
sets
Energy Plant to supply steam, heated air & heated oil to
1
5. the Particleboard,Formaldehyde,UF Resin & Short Cycle -
set
Lamination Plants (optional)
1
6. Electrical c ontrol panels, motors, starters & cabling -
set
1
7. Erection, commissioning, trial run & training the staff -
set
Optional
Steam turbine & Super-heated boiler of high capac ity, as 1
8. -
suitable for Co-generation to supply captive Power for set
Particleboard line

COST OF THE PROJECT-

(Rs.in
crores)
30,000 50,000 80,000
m3plant m3Plant m3Plant
Factory Buildings 3.00 5.00 6.00
Plant & Machinery including
contingencies 18.50 29.50 36.00
(excluding co-generation)
Interest during
1.00 1.50 2.00
construction period
Deposits & Preliminary
expenses including 1.00 1.50 2.00
Consultancy charges
Working capital margin
1.50 2.50 4.00
(25%)
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(25%)
Rs.25.00 Rs.40.00 Rs.50.00
Total
crores crores crores

MEANS OF FINANCE-

30,000 50,000 80,000

m3Plant m3Plant m3Plant
Share capital
- From Promoters &
5.00 9.00 11.50
associates
- From Foreign
institutional
investors &
5.00 9.00 11.50
Venture capital
companies
Total 10.00 18.00 23.00
Term loan from
Banks / All
India financial
15.00 18.00 23.00
institutions /
Foreign Finance
Corporations
Rs.25.00 Rs.40.00 Rs.50.00
Total
crores crores crores

COST OF PRODUCTION & PROFITABILITY –

1. Average imported prices for two side Pre-laminated

Particleboards in India for 8 ft. x 4 ft sizes -
Rs. 29,860/-
- 9mm - Rs. 25/- per sq. ft. =
per m3
Rs. 25,978/-
- 12 mm - Rs. 29/- per sq. ft. =
per m3
Rs. 19,712/-
- 18 mm - Rs. 33/- per sq. ft. =
per m3
Rs. 20,644/-
- 25 mm - Rs. 48/- per sq. ft. =
per m3
Rs. 20,000/-
Weighted average price in relation to the plant capacity
per m3
Less:Excise duty,VAT,trade margins& transport @ Rs. 9,500/-

47.50% per m3
Suggested Ex-factory price for both side pre-laminated Rs. 10,500/-
particle board per m3
Or
Rs.
15,000/-
per ton
2. Cost of Production
15,000m3/year 30,000m3/year 50,000m3/year
per ton -
A. Wood waste /
firewood / round logs -
Rs.2,700/- Rs.2,700/- Rs.2,700/-
1.8 tons @ Rs.1,500/-
per ton
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per ton
B. Cost of UF Resin &
Rs.2,200/- Rs.2,100/- Rs.2,000/-
Chemicals
C. Electricity – 225
KWH /200 KWH / 175 Rs.900/- Rs.800/- Rs.700/-
KWH @ Rs. 4 per KWH
D. Water -1 m3 litres Rs.100/- Rs.100/- Rs.100/-
per ton
E. Thermal Energy-
1,750 / 1,500 / 1,250
kgs of steam =500 /
Rs.650/- Rs.575/- Rs.475/-
437 / 375 kgs of
firewood @ Rs. 1.50
per kg
F. Labourers , Staff &
Managers -
100/125/150 nos. @ Rs.550/- Rs.425/- Rs.325/-
Rs. 1,20,000/- per year
each
G. Miscellaneous
expenses including
Rs.950/- Rs.850/- Rs.750/-
factory maintenance,
administration & sales
H. Cost of pre-
lamination based on
Rupee 4.00 per sq.ft on Rs.3,450/- Rs.3,450/- Rs.3,450/-
the average thickness
of 18 mm
Total cost per ton Rs.11,500/- Rs.11,000/- Rs.10,500/-
3. Plant capacities 30,000m3/year 50,000m3/year 80,000m3/year
4. Average weight of
the board per m3 is 700 21,000 35,000 56,000
kg. Hence the capacity Tons/year Tons/year Tons/year
in tons
5. Revenue per year @ Rs.31.50 Rs.52.50 Rs.84.00
Rs. 15,000/- per ton crores crores crores
Less: Cost of
production @
Rs. 11,500/- per ton / Rs.24.15 Rs.38.50 Rs.58.80
Rs.11,000/- per crores crores crores
ton/Rs.10,500/- per
ton
6. Gross profitability
Rs.14.00 Rs.25.20
before interest & Rs.7.35 crores
crores crores
depreciation
7. Estimated cost of Rs.25.00 Rs.40.00 Rs.50.00
the project crores crores crores
8. Pay-back period
(assuming the capacity
utilization of 60% Less than 51 Less than 44 Less than 34
during I year, 80% months months months
during II year & 100%
during III year)

TECHNOLOGY TRANSFER & TURN-KEY CONSULTANCY ON

PARTICLEBOARD PROJECT
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PARTICLEBOARD PROJECT–

‘Goodrich’ offers these highly profitable Particleboard production lines for

the Indian entrepreneurs. Our services include technology transfer, design
& installation of the Plants from concept to commissioning including
Feasibility studies, Plant Engineering, Equipment selection & procurement,
Co-ordination in project management, operational training and initial
marketing support.

There is a shortage of wood logs in all parts of the world today. With the
new engineering technology, the Particleboard Plants can take advantage
of lower value raw materials like wood wastes & cuttings, small sized
juvenile wood and sugarcane bagasse to produce high quality Boards.

More & more composite panels are used to replace plywood for making
furniture, cabinets & specialty products. As the pressure on worldwide
supplies of wood increases, there is greater scope for cost-efficient
particleboard systems to make wood substitutes.

Click here for BAGASSE- BASED PARTICLEBOARD PRODUCTION LINES FROM

CHINA & EUROPE IN PLANT CAPACITIES OF 15,000 meter3/year,30,000
meter3/year,50,000 meter3/year & 80,000 m3/year

Click here for WOOD- BASED PARTICLEBOARD PRODUCTION LINES FROM CHINA
& EUROPE IN PLANT CAPACITIES OF 15,000 meter3/year,30,000
m3/year,50,000 m3/year & 80,000 m3/year

Other Co-Projects with Particleboard

- FORMALDEHYDE & UREA FORMALDEHYDE RESIN PLANTS FOR

MDF,PARTICLEBOARD & PLYWOOD MANUFACTURERS IN THE CAPACITY RANGE
FROM 10 TONS TO 100 TONS.

- HORIZONTAL IMPREGNATION LINES FROM CHINA

- MELAMINE COATING PLANT & SHORT CYCLE LAMINATING PLANT WITH A

CAPACITY OF 10 MILLION SQ.FT.PER YEAR TO LAMINATE MELAMINE PAPER ON
MDF / PARTICLE BOARDS.

- CO-GENERATION PLANT & ENERGY PLANT FOR MDF / PARTICLE BOARD

PROJECTS

- CLONING TECHNOLOGY FOR RAISING EUCALYPTUS / SUBABUL PLANTATIONS

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