launching the factory producing hollow bricks and blocks 1 in the village of pechenizhyn, kolomyia...

Launching the factory producing hollow bricks and blocks1

in the village of Pechenizhyn, Kolomyia area, Ivano-Frankivsk region

Launching the factory producing hollow bricks and blocks

INVESTMENT PROJECT


Project name

Preliminary project cost

Eurokeramika is the European company specializing in the manufacturing of ceramic hollow bricks and blocks.

2.000.000,00 euros

Project media partner The publishing group LIFE

(combined circulation 1300 000 copies per month)

www.glife.com.ua


THE LEADING PROJECT ADVISERS1. Lviv research and design institute “LvivbudmNDIProject" ( Licence AB №104993 on conducting the construction and designing work issued by the State Committee of Ukraine for Construction and Architecture (order №17-L of 24.05.2005) www.ndpibm.lviv.ua

2. The Spanish manufacturer of equipment for brick factories «TEZASA» www.tezasa.com


SHORT DESCRIPTION OF THE INVESTMENT PROJECT

According to this project the partners together with the investor plan to complete construction of a

modern brick company named Eurokeramika. The company will produce a regular brick, double brick

and hollow blocks with the hollowness from 40% to 60% with the help of the used equipment of the

Spanish company «TEZASA» (the output is 30 million bricks per year).

The planned launch date of the factory – November 2015.

We plan to fulfil the necessary building and construction work concerning the installation of production

line (the wet part) until May 2015.

Until August 2015 we plan to build the dryers with the forced blow-off of air and furnace in which the

bricks and blocks will be fired using coal, peat and chips. The planned furnace capacity is 12 million

normal bricks (bricks of the normal format(NF)) per year.


Company products

1. Regular brick(250х120х65)

2. Double hollow brick(250х120х138)

3. Hollow blockswide range


Consumer market

1. Construction companies in Ivano-Frankivsk

2. Ukrainian migrant workers and their families in Ivano-Frankivsk

3. The European market

As of the end of 2010, by estimate of the World Bank there are

6.5 million migrant workers from Ukraine.

The volume of private money transfers to Ukraine in 2013

amounted to $8.5 billion, which is 13.4% higher year-over-year,

according to the Web site of the National Bank of Ukraine (NBU).

.

Population of Ivano-Frankivsk as of the end of 2010 – 1 380 700 people.


FOUNDERS (PARTNERS)Three Ukrainian private businessmen


Present contributions of the partners1) used cleared Spanish line for the production of raw brick (company «TEZASA», output 30,000,000 bricks

per year);

2) used three cleared foreign trucks adapted to use in the dryers and furnaces;

3) used cleared Spanish equipment and tools necessary for working in the dryers and furnaces;

4) Spanish sketch of the furnace and dryers;

5) technological project concerning equipment location at the factory;

6) the former brick factory buildings with the property rights;

7) the right to use a quarry (13.6 hectares). Licence on using the clay from the quarry is valid until 2014 with an

option to extend for another 10 years/ Currently the documents are submitted for renewal for another 10 years

8) the right to lease land for the factory with the area of 4.9 hectares for 49 years. The land will be privatized to

May 2015.

9) the right for preferential advertising of factory goods on the pages of several print media in Western Ukraine

(1300.000 copies per month) which are owned by one of the partners.

Note: Two partners are the official representatives of the Spanish company «TEZASA» in Ukraine.


INVESTMENT DESCRIPTION

The partners invite investors to jointly launch a new production of hollow bricks and

blocks of the LLC Eurokeramika.

Investors are offered to invest not less than 700.000,00 euros. The investor will get

approximately 35% share in the authorized capital of the LLC Eurokeramika.

Partners are willing to consider other offers, namely regarding sales issues.

Investments will be used mostly to purchase building materials, construction and repair

work, to purchase additional equipment for furnaces and dryers, to pay engineers and

designers.


Company Address

The village of Pechenizhyn, Kolomiya area, Ivano-

Frankivsk region (70 km to Ivano-Frankivsk, 12

km to the railway station in Kolomiya).

The total factory area - 4,9 hectares.

Lease term – 49 years.

The total quarry area - 13,6 hectares.

The term of mining royalties – up to 2024. The

explored reserves of raw materials of excellent

quality and manufacturability for industrial

production of ceramic bricks and hollow blocks are

880 thousand cubic meters).


Facilities

Electricity – electricity transmitter with transformer substation of 630 kW.

Water supply – from their own well.

Gas - None. There is a possibility to be connected to the gas supply.

Cellular network (operators: MTS, Kyivstar)


PROJECT DEVELOPMENT

As of February 2015 the partners bought the old factory buildings, received documents for

land lease and are finishing with the technological project of equipment location.

Nowadays, the partners are developing and planning prior agreement with regional

authorities and control agencies on the enterprise city planning.

At the same time we have finished preliminary work on clearing the factory territory,

completed the reconstruction of the roof. We erect walls and ceiling of the building in which

the equipment will be installed.

We are exploring the possibility of certification of our bricks in Poland now. We investigate

the demand and prices of Polish market.

We have plan to sell at least 50% of production to Europe, transporting bricks by railway.

All mechanical equipment of the line has passed through inspection and is ready for

installation.

.


Advantages of the project Eurokeramika

1. The furnace will work not on gas, the price of which is increasing considerably, but

on coal, peat and sawdust. This advantage significantly saves money. The partners have

used equipment for grinding the abovementioned raw material and pass it on through the

special dispensers in the furnace.

2. Nowadays, there is no factory in Ivano-Frankivsk region that would produce hollow

blocks. The main factory-competitor is situated in Kolomyia but it “bakes” bricks with the

help of gas!

3. There are significant deposits of peat in Ivano-Frankivsk region which are used to a

little extent or are even not used at all and of which the company can make use in the

development. Total reserves of peat deposits in Ivano-Frankivsk region make 13324000

tons, confirmed reserves of peat – 5228000 tons. We have preliminary agreements with the

regional state administration.


Competitors and pricesNowadays, there is no factory in Ivano-Frankivsk region that would produce hollow ceramic blocks.

Approx. prices of our factory:

1. Regular brick(250х120х65) – 0,65 uah/pcs.2. Double hollow brick (250х120х138) – 1,20 uah/pcs.3. Hollow block (300х248х238) – 8,00 uah/pcs.

Competitor’s prices in Ukraine:

1. Regular brick(250х120х65) – 1,60 uah/pcs.2. Double hollow brick (250х120х138) – 2,80 uah/pcs.3. Hollow block (300х248х238) – 24,00 uah/pcs.

Competitor’s prices in Poland (kurs 1 PZL = 7,5 UAH):

1. Regular brick(250х120х65) – 1 PZL (7,50 uah/pcs)2. Double hollow brick (250х120х138) – 2,70 PZL (20,25 uah/pcs).3. Hollow block (300х250х238) – 5,35 PZL (40,12 uah/pcs).

Eurokeramika will sell its products at 10% lower prices than the competitors and will actively promote hollow blocks as economically more

profitable and as the better alternative to regular brick.


Number of employees of LLC Eurokeramika

25 employees

Monthly salary fund of the LLC Eurokeramika after the launching of production

5000 euros per month

Profitability

100 %


PAYBACK PERIOD

Payback period will depend on the demand for the products and on the bank’s interest rate concerning the home loans.We are planning to export to Europe at least 50% of bricks

We predict that the payback period is up to 4 years.

Contact information in Ukraine: Tel. +380-67-65-65-792 Mr. Mykhaylo, mail: [email protected] Tel. +380-50-585-91-41 Mr. Bohdan, mail: [email protected]

Contact information in Spain: Tel 963 890 867; Mob. 645 689 192 Mr. Mykhaylo


Manufacturing techniques of Eurokeramika ceramic hollow bricks and blocks

Extraction of raw materials

The raw material for ceramics is clay. The clay will be extracted from our own quarry

which is adjacent directly to industrial buildings.

Analysis of raw materials was carried out in the laboratory of Lviv Research and Design

Institute which certifies their full compliance with the requirements for the raw materials

of which hollow bricks and blocks are made. High clay plasticity makes 20 units.

Clay which will use Eurokeramika is environmentally safe and contains no additives

which may influence the exterior look of the building or change the technical and

physical properties of products during operation.

Stacking Clay in a Pile

For storing operating reserve of raw materials to achieve its homogeneity and to gain

the full control of production processes, extracted clay is stacked in a pile using an

excavator.



Processing

• 1 box feeder with the measuring of raw materials;

• conveyer belt;

• rolls of coarse grinding to remove the stones;

• conveyer belt;

• press SMK-21 with the mill;

• conveyer belt;

• 2 box feeders;

• conveyer belt for the press;

• vacuum press;

• the system of timber cutting;

• raw bricks packing on pallets.

The above line gives the possibility to receive the highest quality raw materials for further processing and additionally ensures the absence of undesirable impurities.



Drying raw materials

The raw materials on the pallet are transported by the first truck to the chamber and tunnel dryers

where the products are dried thoroughly. This process is very important because the absence of

cracks and the geometry of the brick depend on this.

Kilning of raw materialsDried bricks and raw blocks are transported to the furnace (tunnel or ring furnace) by the second truck. Nowadays, the partners negotiate on what kind of stove to design at the factory. In the furnace raw materials are transformed into the ready-made bricks and blocks under the high temperature kilning up to 1100-1200°C. Furnace is the heart of the brick-making factory.

The raw materials for burning in the furnace are coal, peat and sawdust that are previously crushed in a special crusher. After that they are transported to the furnace. There will be 5 measuring devices (spiders) on the top of the furnace. They will transmit in doses the raw materials to the furnace and control the temperature of kilning of the products.Warehouse storageAll ready goods are transported to the warehouse by the third truck.


Advantages of the hollow blocks

High heat and sound insulation

The air in the micropores of the block and in the closed hollows provides excellent heat

and sound insulation characteristics of walls that are three or four times higher than in the

regular brick. Porous ceramic blocks do not change their thermal parameters during the

whole period of operation.

High level of comfort accommodation

Porous structure of ceramic blocks allows walls to "breathe", maintaining optimum

humidity indoors.

Temperature changes inside the house in summer and in winter are not so tangible.

Ecological compatibility

Porous ceramic blocks are made exclusively from natural raw materials – clay. To have a

porous structure, it is necessary during production to add in the prepared clay substance

small-ground wood sawdust. This sawdust burns under heat treatment forming a lot of

closed micropores.


Advantages of the hollow blocks

Speed and convenience in erecting the walls

Due to the large size of the blocks it takes twice or three times less time to erect walls in

comparison with the regular brick. Blocks with "groove" and "crest" are easy to lay in a

wall and the errors of stonemasons during the laying of the bricks are minimized.

Low weight

The walls of porous ceramic blocks are almost twice lighter than the brick ones. This fact

allows to reduce the load on the foundation and makes it easier and therefore cheaper.

Saving mortar while laying the bricks

Due to the large size of the blocks while laying them it takes three times less amount of

mortar than while laying the regular bricks.

High mechanical solidity – mark 200


SEPARATE PARTS OF THE EQUIPMENT


PHOTO OF THE FACTORY BUILDING


PHOTO OF THE QUARRY

launching the factory producing hollow bricks and blocks 1 in the village of pechenizhyn, kolomyia...

Documents

euros project media

ivanofrankivsk region

european company

kolomyia area

village of pechenizhyn