The production of plastic pipes is a promising and competitive business area that is very popular among enterprising Russians. Practical and inexpensive PVC products are wear-resistant, easy to install, and multi-functional, which makes them popular among buyers.
1. Market analysis 2. Business registration 3. Equipment 4. Raw materials 5. Selection of premises 6. Personnel 7. Documents 8. Profitability and payback 9. Advertising 10. Risks and disadvantages of business 11. Conclusion
Market analysis
Over the past five years, the Russian plastic pipe market has grown significantly in volume. At the end of 2021, supplies of PVC products compared to the previous year, 2021, increased by 4.7%, amounting to 617.8 thousand tons of finished products. The leading supplier of plastic pipes and fittings is the central region of Russia: Rostov region - 32.1% of the total volume of finished products; Moscow – 20.12%; Moscow region - 15.39%.
PVC pipes made in Russia are in high demand not only in the domestic market.
The main consumer country of plastic products from the Russian Federation is Belarus, where about 25% of all goods produced were exported in 2021.
Also, PVC pipes are exported by Russian brands to Kazakhstan, Ukraine, Uzbekistan and Lithuania. In general, products worth a total of $110.77 million were exported to these countries.
Today, the average selling price for PVC pipes for the domestic market is 104 rubles per kilogram.
Business registration
The choice of the organizational and legal form of a future enterprise for the production of plastic pipes depends solely on the owner of the business and his future plans.
If an entrepreneur plans to supply products only to nearby regions of Russia, then it will be enough to register an individual entrepreneur. To export goods abroad, it is best to choose an LLC.
The taxation system is selected in accordance with the chosen legal status.
OKVED codes:
- 22 – Production of rubber and plastic products;
- 2 – production of plastic products;
- 76 – Wholesale trade of other intermediate products.
The production of PVC pipes must be carried out in accordance with Russian (GOST 18599-2001) and international (EN 12201-2:2011) standards. Considering that polymers are used to produce pipes, which release toxic and toxic substances when heated, therefore production will be considered harmful. This means that the entrepreneur will have to contact the relevant supervisory authorities that monitor compliance with environmental legislation.
Calibration and storage
Moving along the rollers of the transport belt, the still hot product is cooled by streams of water. However, this does not guarantee perfect compliance with the required dimensions. Having gone through the entire water cooling stage, the workpiece enters the final stage of manufacturing - calibration.
A special control and measuring device checks the current dimensions of the product with the standard ones. Then the workpiece passes through a vacuum calibrator, where it acquires the desired shape and diameter. The next stage is cutting the product to the required size.
Professional equipment for the production of polypropylene pipes is the main factor in the profitability of the future enterprise. If you approach this issue carefully, then in the end the excellent quality of the products will become the starting point for successful business development.
Equipment
To produce PVC pipes on an industrial scale, you will need to purchase the following equipment:
- Extruder;
- Automatic feeder for raw materials;
- Mixer;
- Several metal baths designed for cooling and calibrating plastic products;
- Vacuum forming apparatus;
- Transport tape;
- Machine for automatic cutting of PVC blanks;
- A storage facility into which finished products are stored.
Plastic Pipe Production Line
Depending on the size of the pipes, the productivity of one line can be:
- Diameter 20 or 25 – about 80 kilograms per hour;
- Diameter 32, 40 or 50 - about 100 kilograms per hour;
- Diameter 63.75, 110 - more than 130 kilograms per hour.
If start-up capital for starting a business is limited, then you can look for used production equipment. The minimum price for one complex is half a million. For one line with equipment from the middle price segment you will have to pay at least several million rubles.
Pipe Extrusion Line
The extrusion line for the production of pipes allows the production of single-layer and multi-layer, smooth and corrugated pipes.
Using such equipment, it is possible to produce products used in gas and water supply systems, sewer and drainage systems, as well as electrical insulation. The production of pipes using an extrusion line is a complex, multi-step process. First, the raw material granules are fed through the funnel of the loading hopper into the heating cylinder. There the raw materials are melted and thoroughly mixed for further processing.
After this, the gear pump delivers the melt to the die head at a set speed. The material passing through the molding head takes on the appearance of an almost finished product. The production of tubular products of increased diameter is carried out using a calibrator. It is located directly behind the die and determines the overall parameters of the future tubular product. In the calibrator, the products are cooled and given the required dimensions and shape.
The thickness of the pipe wall depends on the number of extruders, their productivity, and the speed of the pulling device. A special sensor monitors the diameter of the pipe product. It can work with both ultrasound and laser. Laser sensors are highly accurate and allow you to change the thickness of the pipe in real time. Ultrasonic devices have a greater error. They cost less than laser ones, which is why they are often used in low-cost production lines.
For the production of corrugated pipes, lines with a corrugator are used. It is installed behind the molding head. The corrugator allows you to calibrate pipes and give them the required wave-like relief.
Raw materials
The next important point will be the search and selection of suppliers of raw materials. In most cases, granular polymers are suitable for these purposes: polyethylene or polypropylene.
When preparing an enterprise for work, you need to carefully approach the choice of supplier. The leading domestic companies engaged in wholesale supplies of polymer granules are:
- "Polyplastic" produces a wide range of polymers, carrying out wholesale supplies of raw materials to all regions of the Russian Federation.
- "GlavTechProm" is a Novosibirsk trading and manufacturing enterprise, a leader in the field of polymer production in its region.
- "TD Plastics Group" - the company carries out wholesale supplies of high quality synthetic polymers.
According to experts, polypropylene copolymer is best suited for the production of PVC products.
Polypropylene - raw material for the production of plastic pipes
The average price tag for it is 55-57 rubles per kilogram. Granulated polyethylene will cost about 32 rubles per kilogram. It is used for the production of HDPE pipes.
Manufacturing technology
First, it is necessary to describe in detail the methodology for obtaining high-quality pipelines. Often, random copolymer polypropylene is used for production.
The manufacturing technology is based on the properties of polymers to transform into a plastic state under the influence of temperature. To preserve the molecular bonds of substances, special chemical reagents - catalysts - are added. Subsequently, the heated mass acquires the required shape thanks to extrusion. These processes take place on one production line, and with virtually no human intervention. Modern equipment for the production of polypropylene pipes requires a minimum number of operating personnel.
An extruder is a technological complex in which raw materials undergo several processing stages:
- Heating to the required temperature.
- Formation of the primary pipe blank.
- Product size calibration.
Let's look at each of the stages in more detail.
Selecting a room
A workshop with an area of 100-300 square meters, located outside the city, is suitable for locating production facilities. An important point here will be the availability of convenient access for special equipment, trucks and cars.
Production workshops must be connected to the main utility networks, ventilation, air conditioning and heating systems, security and fire alarm systems.
Additionally, you need to take care of the arrangement of utility rooms and locker rooms for technical staff and an office for administrative workers.
Staff
Each production line must be serviced by two or three operators. It is also necessary to include a technologist, general workers and a manager in the company’s staffing table.
Salaries should be based on the average tariffs in force in the region. As a rule, the salary of a manager is set in the region of 50-70 thousand rubles, a technologist - 40-50 thousand, a production line operator - 25-30 thousand rubles.
PVC pipe production line personnel
If the company operates in shifts, it will be necessary to hire several work teams that will work on schedule. Here you need to remember that it is not enough to form a team, you also need to maintain it. To do this, it will be necessary to provide employees with social guarantees, ensure normal working conditions and develop an incentive system.
Documentation
To produce plastic pipes, it is necessary to obtain a number of permits from regulatory authorities. If finances allow, you can use the services of specialized companies to collect the necessary documents and subsequent interaction with government agencies (fire inspection, Gosnadzorohrantruda, gas service, sanitary and epidemiological station, local authorities).
To avoid possible customer claims and sanctions from regulatory authorities, it is recommended to carefully comply with the requirements of GOST 18599-2001. In particular, transportation of finished PVC products can only be carried out in closed transport, in protective packaging. Transportation of plastic pipes weighing more than 1.25 tons and length more than 5.5 meters is not allowed.
Transportation of plastic pipes
Products should be stored away from sunlight, only in a horizontal position. The total shelf life of plastic pipes in a warehouse should not exceed one year.
Profitability and payback
To calculate the profitability of a business and the payback period of investments, you need to calculate the initial investment. The main expense items are:
- Registration of an LLC or individual entrepreneur, obtaining permits necessary for doing business - from 15 thousand rubles;
- Rent of production premises - depending on the area and region of the Russian Federation, rental costs can start from 50-70 thousand rubles;
- Utility bills – costs for electricity, water, heat and other utility bills will range from 30 thousand rubles;
- Purchase of equipment – from 500 thousand to 4.5 million rubles;
- Polymer raw materials – from 200 thousand rubles;
- Staff salaries – from 250-300 thousand rubles per month;
- Taxes – from 20-60 thousand rubles;
- Advertising – from 50 thousand rubles.
Thus, we find that the minimum amount of initial investment is 2.3 million rubles. If you plan to launch a large enterprise with several production investments, then the starting capital should be at least 8-9 million rubles.
Sales and, accordingly, the company's profit will depend on the success of the advertising campaign, the presence of major competitors in the region, the success of developing sales markets and the production policy of the enterprise.
If we take the calculation that two production lines can produce up to 1000 kilograms of finished products, and the selling price for the goods will be 114 rubles per kilogram, we get the following: 1000 kilograms of PVC pipes * 30 days per month * 114 rubles per kilogram = 3,420,000 rubles . Net profit per month, taking into account all expenses, will be 600-700 thousand rubles. Thus, the initial investment in the business will pay off in 2-3 years.
Financial calculations
Index | Meaning |
1. Initial investment amount | From 2.3 to 9 million rubles |
2. Monthly expenses | 1.5-2.5 million |
3. Productivity per month | Up to 30,000 kilograms of finished products |
4. Monthly income | 3.4 million rubles |
5. Net profit per month | 600-700 thousand |
6. Payback period | 2-3 years |
All figures shown are approximate. The profitability of a plastic pipe production business can vary from 2 to 20% depending on the subject of the Russian Federation.
Use of raw materials for the manufacture of plastic products
Regardless of how expensive and high-quality the equipment is, products may be defective. It is best to buy raw materials from trusted manufacturers with a good rating and experience in the construction business.
In addition to carefully selecting materials, you also need to keep your employees in mind. Such production will require at least a dozen workers, who will need to explain the process in detail from the very beginning. And of course, a technologist, without whom nothing can even be started. The cost of his services will require a lot of money.
A competent marketing policy is a guarantee of a successful business in absolutely any activity, and the production of plastic pipes is no exception. Considering the fairly fierce competition in the PVC products market, it is necessary to be able to offer potential buyers the most favorable terms of cooperation.
To find regular customers, you can contact with commercial proposals:
- Large construction stores and wholesale stores;
- Companies in the field of housing and communal services;
- Construction companies and individuals.
Particular attention must be paid to the development of promotions, preparation of special offers and loyalty programs.
All these measures to attract new customers and retain existing ones must be carried out not only at the beginning of the enterprise, but also subsequently.
If you don’t think about selling products and working with clients at the stage of developing the idea, then the business of manufacturing PVC pipes will ultimately turn out to be unprofitable.
To position and increase brand awareness, it is recommended not to skimp on advertising. Use all available methods - advertising in the media, on television, local radio, distributing leaflets and booklets to promoters, outdoor advertising, etc. Creating your own website can be a good solution for a company of any size. In this case, it will be able to significantly expand the target audience, including outside a specific region.
Extrusion
After passing through the last chamber, the material moves into the product forming device. It is best to analyze the processes occurring at this stage using the example of the SJ 65 33 line. The extruder separates part of the mass volume and automatically places it in a high-pressure area. Using hydraulic mechanisms, the material passes through a special molding insert - a die.
It is made of durable material that does not change its geometric dimensions under the influence of high temperatures or aggressive environments. The shape of the holes on its surface coincides with the dimensions of the future pipes. But since the temperature of the plastic is still high, there is a danger of changing the geometry. To prevent this, equipment for the production of polypropylene pipes is equipped with a water cooling system.
Risks and disadvantages of business
According to numerous clients, the business of producing plastic pipes is good, first of all, because there are practically no risks in it. In recent years, PVC products have been in high demand among legal entities and ordinary citizens.
Plastic pipes are not subject to rotting, they are not afraid of high air humidity or temperature changes. In case of downtime in sales, finished products can be stored in warehouses without worrying that the products will lose their marketable appearance or performance characteristics.
Plastic pipes in warehouse
In most cases, there are no particular problems with finding reliable suppliers of raw materials. In order to be able to withstand fierce competition, it is recommended to comply with all the requirements of domestic and international standards when producing plastic pipes. A good product, in any political, social and economic situation in the country and the world, will be sold and bring profit to the manufacturer.
Heating the polymer
Through the loading chamber, the feedstock (granules) enters the machine for the production of polypropylene pipes. At this stage, they must undergo heat treatment to form a plastic mass of the required consistency.
After loading into the hopper, the granules are subjected to initial treatment at low temperatures. Heating is carried out using electrical elements protected by an aluminum housing. A screw device moves the plastic mass from one chamber to another. The temperature gradually increases, and the material becomes more and more plastic. The heating level directly depends on the requirements for the pipes.