Investment opportunity of wood pellets production in Ukraine 6000 MT yearly

Our company is planning to start wood pellets production in Ukraine. We need a partner who is able to provide financial means of EUR 193600.

The share of the partner is 70% under condition of establishing a joint enterprise. Investing according to the investment schedule during 5 months. The 1st month – 80%, the 4th – 20%

Project goals:

• profit-making :
- 1st year – EUR 140 000;
- 2nd year – EUR 157 000;
- 3rd year – EUR 170 000;
- 4th year – EUR 300 000;
- 5th year – EUR 380 000.

• developing wood pellets production in a long-term perspective:
- 1st – 3rd year – 6000 MT;
- 4th –5th year – 12000 MT.

Success reaching factors:

• Constant growth of the market (wood pellets), excess of demand over supply;
• Team of professionals, which is able to develop the project;
• Constant growth of prices on the utilities will make consumers turn to alternative cheaper and ecologically clean fuels;
• High profitability of the product (low costs of the raw material and labor force).

Current goal:

The search of the investor (partner) for establishing a joint venture

The degree of project preparation for establishing a joint venture (wood pellets production)

1. A detailed business plan has been worked out, including supplement:

• The source of raw materials has been studied and covered profoundly. The necessary raw material calculations are done and agreements on the raw material (saw dust) supply are reached;
• the availability of rented production site directly in the forestry (raw material supplier);
• calculations of approximate (the prices on construction materials grow constantly) estimation of repairs and production building preparations for the equipment installations;

2. Marketing research on the basic countries consumers and producers of wood pellets in Europe is done. Its data is partially given in the business plan.

3. The base of potential buyers of wood pellets (European countries: Poland, Germany) and Ukraine) is compiled and it is being constantly widened. We had a preliminary talk with potential buyers of ready product on the subject: supply terms, quality and the set product (wood pellets) price, samples of contracts are considered.

4. We did a detailed study of wood pellets production process, quality standards and possibilities of wood pellets production of din +.

5. We have preliminary agreements on fast realization of the project and obtaining licences on wood pellets production installation, production and product standardization.

6. We have found a contractor on the repairs and preparation of the facilities and jointly conformed the preliminary estimate.

7. There have been worked out logistic schemes of the raw material deliveries to the plant and the product deliveries to buyers.

8. There are several variants of pelleting equipment selected and carried on the talks with the basic production equipment suppliers from Russia and Germany.

9. We have guaranteed support from the local authorities!

10. There is a mature team of professionals:
- professional head – higher education;
- experienced financier and economist – higher education (economy), working experience;

We did preliminary discussion of recruiting an accountant, drivers, production staff. Production staff coaching is supposed to be on-site when installing production equipment during 2 weeks by the representatives of the plant which supplies production equipment and this is in the list of the required services by the procurement of equipment.

11. Everything is ready and thought over for a quick start of wood pellets production and profitable work of the enterprise. There is an opportunity of the production expansion. We need a reliable partner and money to start production of wood pellets.

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