For Sale: brick factory in Odessa region (Capacity: 2.5 million bricks per season)
Sector: Petrochemical industry
Type of Business Activity: Manufacture of building materials
Asking Price: 500 000 USD
Share of Business Offered for Sale: 100%
Years in Business: 20
Legal Entity: corporation (joint-stock company)
Year Business Established: as limited company since 1994, as corporation since 2013
Main assets of the business:
Land: 8.4 hectares (state certificate) - industrial site
Machinery:
Belt Feeder CM 664 (1 item)
Fine grinding mill CM 1096 (1 item)
Press screw SMC 21 (1 item)
Automatic brick cutter SMC 163 (1 item)
Chain conveyor (1 item)
Brick transfer conveyor (1 item)
Coal transfer conveyor (1 item)
Circular brick kiln for 16 cameras (1 item)
Suction fan T-6 (1 item)
Diesel electric power station 30kW (1 item)
Haulage: Excavator EO 2621V3 (1 item), truck ZIL-MMZ 4502 (1 item), Forklift model P-4045 (1 item)
Stock: Brick (mark 125) estimated cost 150 thousand UAH
License: Document bundle to apply for a permit to develop 34.8 hectares (average processing time 2 months)
Assets in use / lease: 5.6 hectares (quarry, leased for 25 years)
Gross revenue
2012 - $271,000
2013 - $150,000
2014 - Income from rent
Net profit
2012 - $97,000
2013 - $41,000
2014 - Income from rent
Brief Description of the Business:
The brick factory seasonally produces full-body ceramic brick types M-100 and M-125. The factory consists of the following departments:
- Receipt of raw materials
- Preparatory department
- Forging department for semi-finished products
- Transportation department to transfer raw bricks into the drying shed
- Arrangement of raw bricks in the 16-camera Hoffmann kiln
The production volume is 2.5 million pieces per season. Drying is carried out in semi-natural conditions which explains the seasonal character of production.
Production of raw materials and suppliers comes from the South-West area Zelenovsky raw brick material (clay) deposit located 500 meters from the plant.
Product Information:
The most popular types of bricks М-100, 125, 150 (ceramic, acid-proof)
Competitive advantages of product
Raw materials are sources from the quarry located at the grounds of the factory which gives the factory a competing edge.
Sales and promotion
Wide dealership network in Odessa, direct sales at construction markets, online sales to consumers.
Costs Structure
Wages and salaries - 56 000 UAH per month.
Utilities - 45 000 UAH per month.
Taxes - 27 000 UAH per month.
Opportunities and Risks
The business has a large potential and thanks to the own territory business allows for a reconstruction of mineral resources mining for 25 years. High quality of raw materials makes the business more attractive from long term perspective while minimizing the cost of raw materials.
Management and staff of the business owner are ready to make the transition in management and are willing to provide any technical, administrative and other assistance. The whole team is willing to stay with the new owner. Housing for new employees is also available (own residential property).
No history of litigation
Business Success Factors
- Easy access to its own raw materials
- Low competitive environment
- Increase in the construction market
- Cheap labor force
Asking selling price: $ 500 000 (can be discussed)
Motives for the Sale of Business: the age of the owner, lack of funds and desire for further business development.
The structure of the sale: a down payment for obtaining a permit to continue operations at the quarry paid to the bank account of the company ($20,000) and the balance upon receipt of permits in cash.
Investment project: There is a project to expand the plant for the production of 25 million bricks and up to 50 million bricks per season.
Additional information is available upon request.
