Plastic electrical hose factory

Study request

It is about establishing a factory for the production and manufacture of plastic electrical hoses. The project produces and manufactures electrical hoses of sizes (16 – 20 – 25 – 32 mm) used in the construction and building sector.

Capital

rate of return

Recovery period Third year

Project Description

The project is to establish a factory for the production and manufacture of plastic electrical hoses. The project produces and manufactures electrical hoses in sizes (16 – 20 – 25 – 32 mm) used in the construction sector. The plastic electrical hose factory targets contracting and construction companies and shops (electrical appliances stores). The plastic electrical hose factory aims to employ workers and improve their economic and social level. Achieving a high level of quality for the factory’s products, and maintaining a competitive price level enables the project to obtain its target share. Contributing to covering part of the increasing demand for plastic electrical hose products, and using the latest methods in the field of manufacturing plastic electrical hose products. Establishing a factory to manufacture and produce plastic electrical hoses is considered one of the great investment opportunities that achieve high economic returns.

Project Products

16mm electrical hoses.
16mm electrical hoses.
25mm electrical hoses.
32mm electrical hoses.

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.

Attention to the quality of products and raw materials
Quality control of products and operating supplies
Availability of distinguished and experienced workers
Energetic and energetic workforce
The presence of a number of qualified technicians and production supervisors
Production supervisors’ interest in the quality of packaged products
Attention to the general cleanliness of the factory and the packing area
Relying on competitive prices in marketing the product
The presence of a distribution network of qualified and experienced people

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.

In 2020. The global plastic market was estimated at approximately $579.7 billion and is expected to reach $750.1 billion by 2028, with a compound annual growth rate (CAGR) of 3.4%.
In the GCC region, the plastics industry has grown significantly in recent decades, driven by government efforts to diversify the economy and reduce reliance on oil and gas as the sole sources of income.
Moreover, the rising demand for plastics in certain industries has further contributed to this growth.

Like this: The automotive industry, packaging materials, construction, and water pipes have also played a key role in the growth of this vital industry.
A report by the Gulf Petrochemicals and Chemicals Association (GPCA) stated that plastics are the second-largest industrial sector in the region, with products valued at $108 billion.

For those who want to take a look at the indicators of this industry in the Kingdom of Saudi Arabia, “Mashroo3k” Company will present to you specific points that can be a guide in your investment journey; according to the latest statistics available to us:

Saudi Arabia accounts for approximately 72% of the Gulf’s plastic production and industries, while the Gulf region as a whole accounts for 9% of the world’s plastic industry.
Saudi Arabia ranks 8th in the world in plastic production; it has 2% of the world’s polymer production.
By the end of the second quarter of 2021, the number of rubber and plastics factories in Saudi Arabia exceeded 222 factories; these factories represent 11.9% of the total number of factories operating in the Kingdom.
According to the Standard International Trade Classification, the Kingdom’s exports of the category “Plastics in primary forms” amounted to 67,824,000,000 riyals. The weight of these plastics was estimated at 16,978 tons. Regarding the category of “plastics in non-primary forms”, the value of these exports was estimated at approximately 2,403,000,000 riyals, and the weight of these plastics was equal to 384 tons.

In the second quarter of 2020, commodity exports of plastics, rubber and their products were estimated at about 13,723,000,000 riyals, and this figure rose to 22,491,000,000 riyals in the second quarter of 2021.
Operating expenses for rubber and plastics manufacturing activities now exceed 10,103,147,000 riyals. While total revenues for these activities reached 20,148,798,000 riyals.
Operating expenses of rubber and plastics products manufacturing activities are expected to rise to SAR 20,264,052,000 in 2027 and operating revenues of these activities will rise to SAR 32,477,785,000 in the same year (2027); thus, the growth rate of expenses of these activities is equal to 8%. The revenue growth rate is 5.4%.

Finally, Mashroo3k confirms that the global demand for plastic will triple by 2050; the data we have indicates a high level of plastic consumption among individuals in the GCC countries, with the per capita consumption of plastic estimated at 94 kg/year according to the latest available statistics.