carton production plant

Study request

The project is a carton factory that produces corrugated and fluted cartons according to customer specifications. The carton industry is considered one of the most important industries, relied upon by most production companies for packaging and wrapping their products due to the strength of carton paper in withstanding shocks and its resistance to tearing.

Capital

rate of return

Recovery period Second year

Project Description

The project is a cardboard factory that produces corrugated and ribbed cardboard according to the specifications required by customers. The cardboard industry is considered one of the most important industries. Most production companies rely on it to package and pack their products due to the strength of cardboard paper to withstand shocks and its resistance to tearing. Corrugated cardboard is manufactured in various shapes and also the thickness required by customers. Corrugated cardboard is manufactured in several stages. Kraft paper rolls and fluting are used using a ribbing machine. At this stage, the fluting paper, which forms the inner layer of the cardboard, is ribbed, then the outer face of the cardboard is glued and then cut into strips of the required length. It is then transferred to the silicate machine, where a layer of silicate glue is placed on the other side of the cardboard, so we have a corrugated cardboard consisting of three layers, one of which is ribbed, which is in the middle. Then we move on to forming the cardboard using the crusher machine, then the cardboard is assembled using a stapler, so it becomes ready for packaging. Product data can be printed on it using a silk screen. The products are used in many sectors such as factories, packaging companies, and other uses.

Project Products

Cardboard for packaging

Why Mashroo3k ?

Mashroo3k has over 10 years of experience in preparing feasibility studies, conducting market research, and providing comprehensive consulting services.
Mashroo3k has offices in 7 international branches, located in Saudi Arabia, the UAE, Egypt, Qatar, Oman, Yemen, and Iraq, in addition to its agents in China, Singapore, and other countries.
Having delivered over 7,000 feasibility studies, Mashroo3k has helped thousands of clients achieve their investment goals.
Mashroo3k’s services are accredited and trusted by all financial institutions and funding entities across the Middle East.
The company’s geographic reach spans 35 countries across all continents.
Mashroo3k holds membership in over 100 prestigious international organizations specializing in market research and business management.
Its team consists of 350 consultants with deep expertise in promising economic sectors, ensuring tailored solutions and strategies that meet clients’ needs.
Mashroo3k is partnered with more than 10,200 suppliers across 22 countries, providing logistical support for projects, including production lines, raw materials, machinery, and equipment.
With an extensive database, Mashroo3k enhances the accuracy of its forecasts and analyses, strengthening its risk management capabilities.

Use of industrial technology.
Use of high-quality raw materials.
The carton industry depends on experts and technicians.
Increase the operating efficiency of packaging companies.
Increase the domestic production of cardboard

Executive summary

About the project
Financial indicators
Rationale for the project
Government investment incentives in the project area
Target markets
Indicators and final results of the project

Study the project’s services/products

Description of the project and all its products/services
Project features and production requirements

Studying the market size

Familiarity with distribution channels
Consumer behavior, desires, and preferences
Competitors’ products or services, their strengths and weaknesses
Market Nature and Characteristics
The size of the demand for the product or service offered
Available share of the target market
Marketing Optimization

Risk study

Risk identification
The impact of risk on the project
Risk prevention methods

Technical study

Detailed description of the project’s products Expected production capacity Determination of investment costs
Electricity and water sizing
Determine the project’s labor needs
Determine project requirements
Calculating construction costs
Calculating Total Capital
Determine annual operating costs
Determining the amount of working capital

Financial study

Total investment costs required for the project
Organize the flow and income statements as well as the statement of financial position for the first ten years of operation
Determine the size of the project’s expected annual revenue in light of the projected operational capacities
The optimal financing structure for the project in light of the investors’ capabilities and the conditions for granting financing
Project financial indicators and sensitivity analysis

Organizational and management study

Manpower for the project
Organizational structure
Functional tasks

The Kingdom of Saudi Arabia has paved the way for development with its ambitious Vision 2030, which aims at economic diversification, the renaissance of non-oil sectors and increasing the contribution of the private sector to GDP, and this can only be achieved through the renaissance of industry and mining as two main tributaries in major economies, and the Kingdom is determined to increase their participation in its GDP by about 15%. When talking about industry in the Kingdom, it should be noted that it was not born out of the moment, but rather it has been extended and rooted since the discovery of oil in the Kingdom in the late thirties of the last century. Over the decades, the Kingdom spared no effort to develop its industry; it established the Industrial Development Fund (1974), the Royal Commission for Jubail and Yanbu (1975), and SABIC in 1976. The roles and tasks undertaken by these institutions and the programs they worked on to grow the industrial sector and develop its performance and working mechanisms are no secret to anyone. As a result of the efforts exerted years ago in this direction, the number of factories in the Kingdom today has increased to more than 10,000 factories. We, Mashroo3k , believe in the importance of the industrial sector and its role in driving the economy, so we will present its most important indicators below so that anyone wishing to invest in it can be aware of them:

The total number of factories in Saudi Arabia now stands at 10,138; this includes factories in production and factories under construction.
The building materials industry accounts for the largest percentage of the number of factories in the Kingdom (2,016 factories), followed by the metals industry (1,705 factories).
There are 1,445 food factories in the Kingdom.
The plastics and rubber industry has 1,317 factories.
The number of producing factories – according to the latest statistics – reaches 8,258.
The number of licensed workers in these production plants is 967,119.
The capital of these producing factories amounts to 1,214,762,000,000 riyals.
The Riyadh region accounts for 39.4% of the number of productive factories (3255 factories).
The Eastern Province accounts for 41.4% of the total capital of producing factories; (503,448,000,000 riyals).
The proportion of medium-sized factories is estimated at 46.9% of the total number of producing factories.
The number of factories under construction is estimated at 1,880.
According to the latest statistics available to us, the number of licensed workers for these factories under construction is 84,342. The capital of these factories is estimated at 67,264,000,000 riyals.
Food products account for the largest number of factories under construction, with 249 factories (13.4%), followed by rubber and plastics with 222 factories (11.9%).
Small enterprises account for 72.4% of the total number of factories under construction.
Riyadh alone accounts for 43.9% of the total number of factories under construction, followed by the Eastern Province with more than 19.2% and the Makkah region with 9.6%.

Today, the Kingdom is developing 14 industrial cities and oases with a total area of 34 million ^km2.
Investment in the industrial sector is rising at a 16% growth rate.
Vision 2030 contributed to pumping more money into the industrial sector; the money invested in the sector (before the vision) was approximately 955.4 billion riyals, and this figure rose to 1.11 trillion riyals by the end of 2020.
The Ministry of Industry and Mineral Resources provides many services for investors, such as: (industrial license service, customs exemption service, which enables the investor to customs exemption for machinery, raw materials and spare parts, labor endorsement service, chemical clearance).
The Saudi Industrial Development Fund offers many incentive programs. Like this: (Horizon, Competitive, Localization, Renewable). To its credit, the fund contributes to the expansion of the industrial scale, even providing you with 75% of the project value (as a loan) in some economically promising areas. Like this: (Hail, Tabuk, Al-Jouf and others) for up to 20 years as a maximum financing period. It is worth mentioning here that the volume of funds disbursed from the fund is estimated at 121.1 billion riyals until the end of December 31, 2020.