Welding rods factory

Study request

The project is to establish a factory for the production and manufacture of welding rods, where the factory produces welding rods used in various welding operations. The factory’s products are: (E6010 welding rods – E6011 welding rods – E6013 welding rods – E7010 welding rods – E7018 welding rods – E7024 welding rods – E7048 welding rods) with different weights. The products have multiple uses in blacksmith workshops and iron industries. The project targets many sectors such as: (blacksmith workshops sector – iron industries sector – construction and building sector). The demand for the project’s products is characterized by increase and continuity. The feasibility study of the welding rod factory project reveals that the project is considered one of the major investment opportunities that achieve high economic returns compared to other projects.

Capital

rate of return

Recovery period Third year

Project Description

Mashroo3k Company works in the process of preparing a feasibility study for a welding rod factory project (marketing – financial – technical) to study the idea of the project, its components and nature, and analyzes the market size and the marketing gap between supply and demand, and analyzes competitors and products offered in the target markets. After analyzing and studying the market size, it becomes clear that there is an urgent need in the market for the project’s products, which are: (E6010 welding rods – E6011 welding rods – E6013 welding rods – E7010 welding rods – E7018 welding rods – E7024 welding rods – E7048 welding rods) in different weights. The factory provides welding solutions in addition to technical support with the highest standards to meet all industrial specifications through a team of experts. This is done using the latest modern technological means and the best machines and equipment and relying on the best production lines, so that the factory can compete with imports of welding rod products and meet the increasing demand for products in the target markets, which are: (Blacksmithing workshops sector – Iron industries sector – Construction and building sector), and the project seeks to acquire a large percentage of the marketing gap in the local market.

Project Products

Welding rods type E6010
Welding rods type E6011
Welding rods type E6013
Welding rods type E7010
Welding rods type E7018
Welding rods type E6024
Welding rods type E7048

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.

Pay attention to the quality of raw materials.
Having a highly qualified team.
Top-notch workers and technicians.
Accurate and disciplined management supervision.
Take care of the general cleanliness of the factory.
Use of high technology in manufacturing and packaging.
The project will produce high quality welding rods.
Commitment to maintaining the quality of products during packaging.

Executive Summary

About the project
Financial Indicators
Rationale for the project
Government investment incentives in the project field
Target Markets
Project indicators and final results

Study of project services/products

Project description and all its products/services.
Project advantages and production requirements.

Market size study.

Understanding distribution channels.
Consumer behavior, preferences, and tendencies.
Competitors’ products or services, along with their strengths and weaknesses.
Market nature and its characteristics.
The demand size for the offered product or service.
The available share of the target market.
The optimal marketing strategy.

Risk assessment study.

Risk identification.
The impact of risks on the project.
Risk prevention methods.

Technical study

A detailed description of the project’s products, expected production capacity, and determination of investment costs.
Determining the required electricity and water capacity.
Determining the project’s labor requirements.
Determining the project’s requirements.
Calculating construction and building costs.
Calculating the total capital
Determining the annual operating costs.
Determining the amount of working capital.

Financial study.

Total investment costs required for the project.
Organizing cash flow statements, income statements, and the balance sheet for the first ten years of operation.
Determine the expected annual revenues of the project in light of the specified operational capacities
The optimal financing structure for the project in light of investors’ capabilities and financing conditions.
The project’s financial indicators and sensitivity analysis.

Organizational and administrative study.

Project workforce.
Organizational structure.
Job responsibilities.

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 reaches 10,138, including both operating factories and those under construction.
The building materials industry holds the largest share of factories in the Kingdom, with 2,016 factories, followed by the metal industry with 1,705 factories.
The number of food factories in the Kingdom reaches 1,445 factories.
The plastic and rubber industry has 1,317 factories.
The number of operating factories, according to the latest statistics, reaches 8,258 factories.
The number of licensed workers in these operating factories reaches 967,119 workers.
The capital of these operating factories reaches 1,214,762,000,000 SAR.
The Riyadh region holds 39.4% of the total operating factories, with 3,255 factories.
The Eastern Province holds 41.4% of the total capital of operating factories, amounting to 503,448,000,000 SAR.
Medium-sized factories account for approximately 46.9% of the total number of operating factories
The number of factories under construction is estimated at about 1,880.
According to the latest available statistics, the number of licensed workers in factories under construction is 84,342 workers, and their capital is estimated at 67,264,000,000 SAR.
Food products account for the largest number of factories under construction, with 249 factories (13.4%), followed by rubber and plastic products with 222 factories (11.9%).
Small establishments account for 72.4% of the total number of factories under construction.
The largest number of factories under construction is located within the geographical scope of Riyadh; Riyadh alone accounts for 43.9% of the total number of these factories, followed by the Eastern Region with a percentage exceeding 19.2%, and then the Makkah Al-Mukarramah Region with a percentage of 9.6%.

Today, the Kingdom is developing 14 cities and industrial oases with a total area of 34 million km^2.
Investment in the industrial sector increases by 16%.
Vision 2030 has contributed to pumping more money into the industrial sector; the money invested in the sector (before the vision) amounted to approximately 955.4 billion riyals and this number rose to 1.11 trillion riyals by the end of 2020.
The Ministry of Industry and Mineral Resources has provided many services to investors through the “Industrial” electronic platform, such as: (industrial licensing service, customs exemption service which enables the investor to obtain customs exemption for machines, raw materials and spare parts, labor support service, chemical clearance).
The Saudi Industrial Development Fund offers many incentive programs, Like this: (Prospects, competitiveness, localization, renewable). The fund is credited with contributing to expanding the industrial scope, to the extent that it may provide you with 75% of the project value (as a loan) in some economically promising areas. Like this: (Hail, Tabuk, Al-Jawf, etc.) for a period of up to 20 years as a maximum financing period. It is worth noting here that the amount of money disbursed from the fund is estimated at 121.1 billion riyals until the end of December 31, 2020.