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Brick making Factory from design to startup

Asstrom Association unites manufacturers of processing line equipment for brickmaking factories and project and setup companies dealing with brick manufacturing.

We offer you designing and construction of brick making factories on a turn-key basis.
In the world bricks are made by means of three different technologies: dry pressing, plastic extrusion and stiff-extrusion. All these technologies ensure production of high quality bricks. However building costs and operation efficiency of a brick-making factory are different for each technology.

By means of cost benchmarking we can find out that drypressing equipment is 10 times cheaper than plastic-molding equipment offered by European companies. Thus, the cost of the dry-pressing equipment with 10 million bricks per year capacity constitutes US$ 1 million. And the cost of similar plastic-molding facilities from Europe makes US$ 10 million.
     But the most important thing concerning the financial efficiency of a brickmaking factory is not even the equipment cost. The point is a payback period for the money spent on the brick-making factory. And the possibilities of the owner's bankruptcy before the costs are covered.

    Let us compare the costs of and the profits from brick production with different production methods.

With dry pressing at the factory with 10 million bricks per year capacity:
- capital building expenditure - US$ 3 mln (including the cost of equipment of US$ 1 mln)
- one brick prime cost- US$ 0.05
- sale price - US$ 0.2
- gain on one brick - US$ 0.15
- annual profit US$ 0.15 х 10 mln= US$ 1.5 mln
- payback period - US$ 3 mln: US$ 1.5 mln = 2 years.

With plastic molding at European extruder:
- capital building expenditure - US$ 20 million (including the cost of equipment of US$ 10 mln)
- one brick prime cost - US$ 0.2
- sale price - US$ 0.3
- gain on one brick - US$ 0.1
- annual profit US$ 0.1 х 10 mln = US$ 1 mln
- payback period - US$ 20 mln : US$ 1 mln= 20 years.
I think we all realize that it is insane to wait for 20 years to get the money spent on plastic molding back. And in the event you get a loan you can lose at least both the brick-making factory and the pledged property.
So as not to get bankrupt we recommend you when building a brick-making factory to pay to attention to the financial efficiency of the equipment first and insist on application of energy-saving technologies such as dry pressing.

We are happy to show you dozens of brick-making factories that we have built with the payback period of 2 to 3 years.

© 2007 ASSTROM
Russia, Rostov-Don