Wood recycling plant

Study request

The main idea of the project is to establish a wood recycling factory where the project collects and recycles old wood of all kinds. The factory relies on crushing old wood and converting it into small parts and pieces, followed by the pressing and shaping stage. The project products are represented in the production of compressed wood panels with a thickness ranging between 9_25 mm. The project targets its products (furniture showrooms and shops – offices – individuals – companies – public sector – hotels) seeking to benefit from the growing demand for these products. The feasibility study of the wood recycling factory project confirmed that the project is one of the investment projects with high economic returns.

Capital

rate of return

Recovery period Third year

Project Description

Mashroo3k for Economic and Administrative Consultancy is preparing a feasibility study for a wood recycling plant project. The market analysis revealed an urgent need for the plant’s products, specifically compressed wood panels with thicknesses ranging from 9 to 25 mm.
As previously mentioned, the plant’s operations will focus on recycling wood waste, which can be sourced from pallets, wood offcuts, palm fronds, and tree trunks.
With high-quality products offered at competitive prices, the wood recycling plant will supply its products to target sectors such as furniture stores, offices, individuals, companies, the public sector, and hotels. The plant will utilize the best available production lines, aiming to secure a significant share of the market gap between supply and demand.

Project Products

Wood used as biofuel in power plants and solid cooking stoves.
Compressed wood panels with thickness ranging from 9-25 mm.
Wood used in furniture, floor coverings and upholstery.

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.

Ease of shaping wood.
The wood is easy to cut.
Wood has many uses.
Wood has thermal and sound insulation.
The wood is characterized by high durability and hardness.

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 recent years, Saudi Arabia has turned its attention to the recycling sector, recognizing its importance in achieving the goals of Vision 2030 and its potential to drive the economy towards sustainable development. In 2017, the Saudi Investment Recycling Company (SIRC) was established with the support of the Crown Prince, aiming to save billions of riyals lost annually from the Kingdom’s treasury due to the lack of focus on recycling industries. These lost funds have been approximately estimated to range between 30 billion and 70 billion SAR.

To reassure our clients about investing in this sector, we will present here the most important indicators and results of the sector according to the latest statistics available to us:

Conservatively estimated, global reports indicate that Saudi Arabia produces 15 million tons of municipal solid waste annually, at a rate of 1.4 kg per person. This amount is expected to double to 30 million tons by 2033, driven by a population growth of 3.4%.
The amount of demolition and construction waste exceeded 14,399,005 tons.
The amount of textile waste exceeded 959,535 tons.
The amount of glass waste is estimated at 892,096 tons.
Metal waste has exceeded 1,096,754 tons in recent years.
The amount of plastic waste reached 2,296,978 tons.
The amount of cardboard waste reaches 2,854,321 tons.
Organic waste is estimated at 9,757,544 tons.
406 landfills is the total number of landfills in the Kingdom.

Mashroo3k affirms that the volume of waste in Saudi Arabia now exceeds 45 million tons annually. With the Kingdom determined to increase the recycling rate from 1% to 80% by 2035, the company believes that investing in this vital sector will be highly profitable.

Regarding the prospects of the recycling and energy industry, we can mention the following:

In the Kingdom, we can save 45,000 terajoules of energy by recycling glass and metals alone.
3 TWh of electricity could be generated annually if all food waste in Saudi Arabia was used within the walls of biogas plants.
We could generate 1-1.6 TWh of electricity in Saudi Arabia annually if plastic and other mixed waste were processed, Like this: (Paper, cardboard, wood, textiles, leather, etc.) in pyrolysis processes.

Mashroo3k for Economic Consultancy and Market Research emphasizes that recycling is one of the promising sectors in Saudi Arabia, and its projects will present genuine investment opportunities, especially as the Kingdom moves towards a green economy. Environmental preservation has become a top priority for the wise leadership, as clearly reflected in Vision 2030.