Feasibility Study of Building a Wood Plastic Factory from Bagasse in Khuzestan Province

Document Type : Original Article

Authors

1 Department of Wood Industry, Technical and Vocational University (TVU), Tehran, Iran

2 Technical and Vocational University (TVU), Tehran, Iran.

Abstract

The purpose of this research is the economic feasibility of producing wood plastic profiles from environmentally friendly materials (bagasse) in Khuzestan province. For this evaluation, industrial accounting principles were used. The total amount of investment for the annual production of 160,000 square meters of plastic wood is expected to amount to 72,491.5 million Tomans, which brings the following economic results: internal rate of return (32.4%), return period of capital (26 months), production break-even point (16.88%), break-even sales (13,491.4 million Tomans), ratio of circulating capital to fixed capital (43.14%), fixed investment per capita (3376.3 million Tomans/person) and ratio of profit to capital (64.64%). The finished price of the product (295,365.75 Tomans for each square meter of wood plastic) shows that the construction of this factory, in addition to creating jobs and reducing the import of wood plastic, also prevents foreign exchange from leaving the country. Also, this plan has a suitable economic and financial justification.

Keywords


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