Journal of Emerging Trends in Engineering and Applied Sciences: Research Areas

Article Title: Investment Analysis for the Establishment of a Plant for Manufacturing Gas-Fired Furnaces for Non-Ferrous Metals
by O.A. Ighodalo

Abstract:
Towards the local production of furnaces which will make possible the processing of non-ferrous metals and thus stimulate industrial growth and also contribute to government's present efforts at solid mineral resources development, an investment analysis for the establishment of a plant for manufacturing gas-fired furnaces for non-ferrous metals was carried out. The analysis was done for a manufacturing plant with an installed capacity of 120 units of the furnace per annum. The furnace capacity is 27.3kg/hr of aluminium and is suitable for small-scale industrial production. As part of the methodology, a market analysis, the required equipment, materials, and the human resource requirements are presented. The financial aspect is also presented and the financial and breakeven analysis were carried out. The market analysis confirms a ready market for the product and the required total capital investment for the plant is approximately, 42.5 million Naira. The estimated annual profit is approximately 27.1 million Naira. The financial analysis shows that the investment is a profitable venture with a good profitability ratio and rate of return. The payback period for the venture is less than 2 years

Keywords: investment, profitability, furnace, plant, manufacturing, non-ferrous metals

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