ID: 22511

24.10.20

Business for sale: sell a business and buy a business in Ukraine

Production of paper base from pulp for the manufacture of sanitary and hygienic products

We offer for sale an enterprise for the production of paper base from pulp – a raw material that is used for further production of sanitary and hygienic products

Location:

Каменское, Днепропетровская область, Украина, 51900

  • Sector: Wood processing
  • Business activity: Furniture manufacturing
  • Price: $1 000 000
  • Share: 100%

An enterprise for the production of a paper base from pulp – a raw material that is used for further production of sanitary and hygienic products (paper napkins, towels, handkerchiefs, toilet paper) is offered for sale. The enterprise is located in the city of Kamianske, Dnipropetrovsk region.

The property is:

  • Workshop with an area of ​​2,721 sq. m., a 5 ton crane, office and technical premises, its own transformer substation for 1 MW of electricity, a boiler room with a capacity of 2.4 tons of steam per hour, its own high pressure hydraulic fracturing station, a water pipeline with a diameter of 500 mm, etc .;
  • The main asset is the MACCANICHE TOSHI flat-screen paper machine, with a production capacity of 600 t / m of white pulp paper base. Paper web production speed is 400 m / min, width – 1800 mm, weight – 16 ÷ 32 g / m2

Utilities:

  • Power supply:

- The enterprise has two 630 kVA transformers

- The transformers are connected to a power transmission line that runs next to the plant

- All permissions required for this have been issued

  • Water supply and sewerage

- Water supply of production is provided through an industrial water conduit with a diameter of 500 mm, passing through the territory of the enterprise

- Currently there is a tie-in with a diameter of 200 mm in this water conduit

- We have completed the installation of a fresh industrial water line in a workshop with a diameter of 100 mm

  • Steam supply

- The technology of paper production in this paper machine provides for the use of technological steam for the Yankee cylinder and for the hood of high-speed drying

- The enterprise has a modern automatic gas boiler house with a capacity of 2.4 tons of steam / h and 0.8 MPa

- Heaters for heating the air supplied to the hood are designed for 12MP

- The boiler room is connected to the gas supply and is ready for operation

Technical condition:

  • In 2019, test samples of finished products were carried out on this equipment, at the moment the equipment is mothballed and an independent technical audit was carried out
  • According to the results of the audit, additional capital investments in the amount of USD 700,000 (additional equipment and commissioning works, construction works) are required to fully launch production;

Modernization:

  • It is possible to install additional equipment for converting, which will make it possible to produce (using our own raw materials – paper base) napkins, paper towels and toilet paper in the range, thereby creating a full cycle of finished products;

Enterprise development potential:

  • The consumption of sanitary and hygienic types of paper in Ukraine is three times lower than the European level, which indicates a great potential for the development of this market
  • Favorable market – 80% of paper base in Ukraine is imported (about 1300 tons / month), there are only 2 manufacturers of pulp paper base in Ukraine – KKPK (used for domestic needs) and KBK-Lvivkartonoplast (selling to the market);
  • Pulp based products account for only 1/3 of the market, which creates great potential for increasing the consumption of tissue products from paper pulp
  • Import of paper base by volume increased from 2015 to 2019 by 130%, indicating a strong growth in consumption of sanitary and hygienic products from paper pulp

Financial indicators:

  • After the launch of production, the company will be able to reach sales of USD 6 million and EBITDA USD 1.5 - 1.6 million;
  • The asset is offered at a stress price – USD 1 million (IRR for investment 52%, payback period – 2 years);
  • Over all time, the company has invested USD 2.5 million

Other:

  • Legally sound asset – there are no legal disputes and / or conflicts between shareholders

For more detailed information follow the link: https://drive.google.com/drive/folders/1MtzpqwGGjvbv4_CPd5ve5KZizqyILPhD?usp=sharing

Location

Contacts

Connect with us!