Cement Factory Proposal
A local company is interested in forming a joint-venture for a Cement Factory with annual production capacity of 775,000 metric tons. The Estimated Investment Capital is $115M US, with recoupment period of 6-7 years, including tax holiday per Myanmar Foreign Investment Law.
The local company has purchased approximately 500 acres of land and has obtained all the required permits to build the cement factory. The raw materials have been independently tested and determined to be of industry standard.
Timeline & History
Local company granted p permission to establish 2,000 TPD cement plant in Kalaw, Shan state by the Ministry of Industry (1) on January 11, 2011.
The Limestone mining Permit was granted at Kyauktaga limestone deposit, in Kalaw by the Ministry of Mines on February 20, 2011.
Coal concession permits are submitted to state authorities and 17 plots of coal mines are on process with Shan state government.
Investment Permission delayed processing by the changes of Myanmar Investment Commission authority & policy.
The new location is perceived at Loikaw, Kayah state and MIC annexed to relocate and increase production capacity of 4,000 TPD permission on November 8, 2011.
Plant producing capacity:
Annual producing capacity:
Total Investment capital Assumption:
Annual production Revenue Assumption:
Annual Total Production cost:
Gross Profit Assumption (Before Tax):
Profit Assumption (After Tax):
Whole sale price of cement (ex-factory)
Assumed Raw materials cost:
Assumed Operation cost:
Assumed Production cost:
Raw Material availability:
2,500 Metric Ton per Day (Phase I)
775,000 Metric Ton
$54,250,000 US per year
S34,875,000 US per year
$19,375,000 US per year Net
$13,562,500 US per year
6-7 Years (inclusive tax holiday)
$70.00 US per Ton
$41.00 US per Ton
S4.00 US per Ton
$45.00 US per Ton
A corporate tax is 30% (income tax of 30%) for taxable profit. Deficit can be carried out forward for three years.
Total of 92 million ton of Limestone. Available for 2 units of 2,500 TPD for 50 years.
20 million ton of Coal are available in one plot of concession and ten plot have been allocated.
Gypsum is also available in mass quantity of several million ton in each concession area.
Assumption of Materials Cost
|Materials||Cement (Per Bag)||Cement (Per Ton)||Raw Material (Ratio)||Raw Material (Cost Per Ton(K))|