Plant for production of Aerated Concrete Blocks

Project summary

Aerated concrete is one of the most economical building materials, while possessing high operational characteristics. The production technology has been tested over a long period of time. The porosity of the aerated concrete structure provides a high degree of thermal insulation, energy-saving properties, and low weight. One of the main advantages of this material is fire resistance. Aerated concrete is absolutely safe for construction due to its non-flammability. The hollow structure makes the blocks lighter, as a result of which less load is created on the foundation.

The transparent process of aerated concrete production allows you to bring it to the competitive market in a fairly short period of time (from receiving funds to an established working line ~ 90 days).

Advantages of business ideas:

- Short period of time to enter the market - 90 days
- There is a base of customers who are ready to make an advance payment for production for 1-2 quarters
- Constantly growing demand
- Performed analysis of competitors regarding production quality
- Implementation of a new solution in production to increase the number of sales
- Flexible production, which is adjusted to the needs of the customer
- The technology allows to deliver the material to the construction site within 2 days
- Speed of production and installation.
- The ability to satisfy the needs of customers in any region of Ukraine.
- Lack of seasonality in production and sales.

According to experts' forecasts, the demand for modern building materials will only grow every year. The main advantage of aerated concrete is that this material allows you to build an energy-saving house. Over time, aerated concrete blocks have every chance to displace bricks and other similar materials from the market.

The factory for the production of aerated concrete blocks by the autoclave method provides for a full production cycle (from the order of materials to the packaged aerated block)

Business organization (briefly):
1. Search and rent of premises for production
2. Ordering and delivery of the equipment necessary for the production technology of aerated concrete blocks by the autoclave method.
3. Repair of premises and purchase of necessary office equipment.
4. Conclusion of contracts with clients, receipt of advances for production/grant.
5. Commissioning and adjustment of equipment for production. Search and registration of employees.
6. Training of safety equipment workers during production and obtaining the necessary permits.
7. Ordering and delivery of materials for production
8. Production of the first "pilot" batch, analysis in the laboratory, obtaining a quality certificate.
9. Production of aerated concrete blocks by autoclave method for sale.
10. Delivery of the first cargo to the final consumer.

Skills and competencies:

1. 2 years of sales of construction materials and analysis of their types and sales market.
2. Experience as a construction engineer (calculation of technical characteristics of materials, construction planning, development of technological maps of work production - 5 years.
3. Experience as a supplier of construction materials, selection of the best offers, analysis of price policy, analysis of material quality, full circle of supply of materials from raw materials to products of great complexity (mechanisms) - 5 years.
4. Work experience in the tender department, analysis of price, competitors, quality, speed of delivery, logistics routes - 5 years.
5. Experience in installation of engineering systems and equipment commissioning - 5 years.
6. Work experience in project management, project manager at a large construction site, with drawing up and keeping work schedules. Planning, research, implementation - 5 years.
7. Experience with documentation (Permitting, licensing, research, laboratory of concrete, bricks, fittings) - 5 years.
8. Work experience in management, under the leadership of more than 15 people.
9. Experience in turnkey construction - 5 years.

Target clients:

1. Brick and gas block bases, warehouses that constantly replenish stocks, and invest in production several quarters in advance according to supply contracts, which in turn will sell further to their final consumer. We already cooperate with them.
2. Large developers who build residential and non-residential premises "on a turnkey basis" and buy a volume of 1 machine standard - 38.88 m3 of a gas block, cooperation on supplies has already been established.
3. Contractors, masons who build private houses and already cooperate with our organization.

All organizations, as well as people who order this material, prescribe a delivery schedule, which we currently adhere to.

What customer needs or problems do your products and/or services solve?

The client's problems that we will solve:

1. Purchase volume from 38.88 m3.
At present, the factories release at a wholesale price a volume of 1,000 m3. After the analysis and attempts to cooperate with the factory, we increasingly turned to warehouses that sell with their own markup. We will partially solve this problem.

2. Adjustment of production to the customer
After the customer's order, we can produce a gas block according to his needs - size, thermal conductivity, strength.
The main drawback of the currently existing factories is the production of gas blocks of only one strength, which does not always fit the criteria of the customer's project, as a result of which the client cannot order "everything at once" and is forced to contact several manufacturers.

3. Speed of delivery.
In the field of construction, the speed of delivery of materials plays a significant role. Therefore, we are already negotiating with logisticians and carriers who will be able to deliver the goods to the customer within a day after payment for the material, subject to availability in the warehouse.

4. Installation speed.
Considering that one block in size replaces 20 bricks, the construction time is reduced. Therefore, the purchase of aerated concrete blocks is economically beneficial.

5. Strength and durability of autoclaved concrete.
The durability of a building whose outer walls are made of aerated concrete blocks is not inferior to buildings with walls made of brick or concrete: so, for example, according to STO 00044807-001-06 near buildings up to 5 floors with outer walls of small aerated concrete autoclave hardening blocks have a predicted durability of 100 years, the duration of operation before the first overhaul — 55 years.

6. Environmental friendliness.
Aerated concrete products do not contain toxic and organic compounds, so they do not emit harmful gases and other emissions during operation.

Market and competition:

The main sale of the goods will be carried out at the expense of wholesale buyers - warehouses, sellers of building materials, who will sell the goods at retail (the scheme has already been established).

The potential size of the market changes every day, but taking into account sales experience, we can note that 90% of builders build their residential complexes where the project is based on aerated concrete. Every day, construction is started that requires this material. Since the price of aerated concrete is constantly increasing, it is possible to note that the supply is less than the demand.

The volume of completed construction works for January-September 2021 amounted to UAH 149 billion. (+3.2)% until 2020, due to: (+18.4)% housing construction; (-2.0)% commercial construction; (+1.3)% infrastructural construction (here and further without taking into account statistics for Crimea and the ATO zone). The TOP3, according to PAU, in the field of residential and non-residential construction included: non-public LLC "Monolit Budservice", LLC "BC "Intergal-Bud", JSC "Trest Zhitlobud-1", in the field of infrastructure construction - LLC "Automagistral-Pivden" , "Onur Construction International" LLC, "RDS" LLC.

During 2021, our partners and I sold 60,000 cubic meters of the gas block in Kyiv. Most of the goods were imported from Gomel.

Today, the main competitor in the production of aerated concrete is Stonelight. They also produce aerated concrete products by the autoclave method. The main drawback is the lack of expansion of the range of products, as AEROK did, which produced aerated concrete of various brands, which was suitable for many types of work, both insulation and the production of partitions and load-bearing walls. Due to the fact that Stonelight makes aerated concrete of only one strength, we will have advantages in the competitive market.

Competitors AEROK and GOMEL are leaving the Ukrainian market.

The motivation for buying our products is the "flexible" production of material for the customer's needs in a fairly fast time for this field. Also fast delivery and affordable stable prices.