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Looking an equity partner
Posted by: Vladimir Zarubkin on 8/6/2008 8:46:51 AM
Funding Needed:
Above $1mil
Category:
Manufacturing & Production
Website :
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Location :
Moscow, All, Russian Federation
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Description:
We offer participation as JV partner in highly profitable project with low risk.
The purpose of the project is production of new (in Russian market) competitive product OSB (Oriented Strand Board) from cheap low-grade and illiquid wood of coniferous and deciduous breeds. Oriented Strand Board (OSB) - a type of mat-formed panel with oriented face and back strands and possibly cross oriented core strands, and made of strands whose length is at least twice their width.
Consumption of imported OSB in Russia steadily grows. Till present there is now production of OSB in Russia.
It is expected that market contribution till 2010 will be increased 10 times and will reach 1500-1600 m3 per annum.
The average cost price of manufacturing of 1?3 OSB plates according project varies between USD 120-180.
The current market price in Russia of OSB plates - USD 550-570.
Project finance requirements – USD 100 mln/5 years/Equity & Debt
Experienced Project team set up. Current stage of the project: Experienced quality team with international experience to form the project set up. Well established mature wood harvesting company with full infrastructure value USD 12 mio is acquired to source OSB manufacturing plant with raw material by 100%. 12 hectares plot of land in industrial zone are granted for 49 years rent with permission to buy. Engineering company selected. Equipment suppliers are selected. Construction company is selected. All permissions from local authorities are granted.
Factory planed to produce 70000 sq. meters OSB per annum. Project cost USD 100 MIO. 5 year EBIDTA USD 150 MIO. We offer JV & 25% against USD 5 mio. We expect capitalization of the OSB production Company USD 250 mio in 5 years. Exit.
ROI over 120% per annum
Details & business plan on request.
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