hollow red brick factory

Study request

It is about establishing a hollow red brick factory, where the factory will produce and manufacture hollow red bricks, as red bricks are characterized by ease of shaping in several shapes and sizes, in addition to their heat resistance and homogeneity in construction.

Capital

rate of return

Recovery period Fourth year

Project Description

The project is about establishing a hollow red brick factory, where the factory will produce and manufacture hollow red bricks, as red bricks are characterized by ease of shaping in several shapes and sizes, in addition to their heat resistance and homogeneity in construction. The importance of the project comes from the continuous demand for construction and building products and the huge boom in various industrial and housing fields due to the existing urban development and renaissance in which the construction field needs red bricks, which has made the demand for the factory’s products increasing, and because the raw materials needed for it are available, which increases the chances of stability of production processes for these products. The aim of the project is to meet the requirements and needs of the region due to the abundance of urban development and benefit from all the elements of sustainable development. The project targets the local market (contracting companies – construction and building – contractors). The project also seeks to provide the necessary expertise to manage and operate the project and production lines, which achieves the ability to continue and meet the increasing demand for red brick products and compete with local producers.

Project Products

Hollow red brick size 40*20*20 cm.

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.

Hollow red brick products are characterized by high quality, efficiency, accurate and homogeneous sizes.
It helps and contributes to completing finishing works in an ideal and economical manner.
The factory produces all sizes of red clay blocks to meet all desires.
There is an increasing demand for the products.
Relying on a modern scientific method in factory management.
Relying on a distinct marketing plan and strategy.

Executive Summary

About the project
Financial Indicators
Justifications for Establishing the Project
Government Investment Incentives for the Project
Target Markets
Project Indicators and Final Results

Study of the project’s 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.
Determining the Expected Annual Revenue of the Project Based on 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.

Believing in the importance of the sector, Mashroo3k Consulting Company presents below its key indicators:
- The GDP of the Kingdom of Saudi Arabia is estimated at about 2,625,442 million riyals. The contribution of the construction sector to this GDP is 6.4% (168,750 million riyals).
- The total number of workers in the construction sector is 3,541,997 individuals (419,067 Saudis, 3,122,930 non-Saudis).
- The number of workers in the sector under the umbrella of (micro and small) establishments with a strength of (1-49 workers) was estimated at about 790,815 individuals.
- The number of workers in the sector under the umbrella of (medium) establishments with a strength of between (50 workers – 250 workers) was estimated at about 517,232 individuals.
- The number of workers in the sector under the umbrella of (large) establishments with a strength of (250 workers or more) was estimated at about 2,233,942 individuals.
- The construction sector is divided into three activities in the Kingdom: building construction, civil engineering, and specialized construction activities. The number of workers in the building construction activity reached 2,289,617 individuals. As for the number of workers in the civil engineering activity, their numbers reached 598,398 individuals. As for specialized construction activities, they accounted for about 653,982 individuals working in the sector.
- Operating expenses for the construction sector: 101,960,803 thousand riyals.
- Operating revenues of the construction sector: 330,329,657 thousand riyals.
- Total value of projects in the construction activity is 682,242,022 thousand riyals.
- The average compensation for workers in the construction and building activity is 32.3 thousand riyals.

It is no secret that the Kingdom of Saudi Arabia’s 2030 vision only sought to diversify its economy and increase non-oil sector revenues in its GDP. The Kingdom has embarked on its ambitious journey; it has pumped huge sums into its infrastructure and has begun building mega projects to encourage national investments and attract regional and foreign investments.

The construction sector in Saudi Arabia is expected to register a CAGR of 7.8% to reach SAR 196.2 billion by 2024.