Promising business: asphalt plant

* The calculations use the average data for the World

Asphalt is an indispensable material in the construction of roads, but it is also used in many other areas of human activity. It serves as the basis for the preparation of waterproofing, roofing, use it even in painting. However, in all these cases, the cooking technology is radically different, so an entrepreneur who decided to start producing asphalt should initially decide on the direction. The most promising is the production of asphalt concrete, which is used in the construction of road coatings, and it is advantageous to engage not only in the manufacture of the material, but also in the subsequent laying of asphalt, although it can be limited only to the creation of a production enterprise.

There are enough offers on this market in this area, and an entrepreneur who is just starting work is forced to offer his customers any advantages of his product. The most obvious is the reduction in the price of products, but this is not always possible, because it also depends on the supplier of raw materials, and if he is too far from the place of production, the cost of production will be significantly higher due to transportation costs. You also need to immediately take care of finding partners, especially if you plan to create asphalt for pavement - such material is suitable for use only immediately after production, then it cools and becomes brittle, it becomes impossible to lay it.

True, there are some technologies for the production of asphalt, which allow transporting asphalt to the place of laying, and today mobile plants have been developed that move from place to place. Mobile plants cost significantly less than stationary ones, and an entrepreneur should seriously consider this option of organizing his business. At the same time, there may not be other companies in the region that are engaged in such asphalt production.

In any case, before starting work, you need to carefully study the market, the offer of competitors and the prospects for your own growth. The customers for the laying of asphalt will be primarily municipal institutions that are responsible for the state of state roads. A significant share of the market is occupied by private construction companies, which carry out the refinement of the territory, and this range of work also includes laying access roads. Private entrepreneurs who want to equip their own territory, for example, pave roads, sidewalks or lay a parking space, can become customers for laying asphalt. However, it should be borne in mind that in most cases, large construction companies and especially municipal institutions have already established relations with asphalt producers, so they will have to be convinced that the new production is more efficient, offers a better product and services, and, if possible, a lower price . Otherwise, there is no guarantee that the entrepreneur will be able to find distribution channels for his products.

To get started, you need to register as a business entity. Individuals can register as an individual entrepreneur, but if there is a need to register a legal entity, the limited liability company is the preferred form. This is due to the fact that in this case a simplified taxation system will be available, which in turn allows transferring no more than 6 percent of revenues or 15 percent of operating profit to the state. It is important to choose the OKVED codes correctly, and such activities fall under the definitions (OKPD 2) 42.1 Automobile and iron roads; construction work on the construction of roads and railways and (OKPD 2) 23.64 Mixtures and mortars for construction. Given that now there is no need to comply with the state standard, an entrepreneur can produce asphalt using any selected technology, although municipal services will most likely prefer a company that supplies standard material.

Next, you need to determine the place of future production. If you plan to open a stationary plant, you need a large area for the placement of all equipment, providing access roads and communications, building or repairing premises. Depending on the planned production volumes, the territory of the complex may be different, in this case, the entrepreneur can start from a small plant, gradually expanding production as it develops. However, you should not think that a mobile plant is much easier to maintain, because to accommodate its equipment also require considerable area, as well as additional vehicles for transportation. It is important to consider that the asphalt plant should be located as close as possible to the road construction sites. A form of work is possible when an asphalt concrete plant is only a manufacturer of material, and the resulting product is taken away immediately after manufacturing by a partner who is engaged in asphalt laying.

The stationary asphalt plant should then cooperate with the maximum possible number of companies that conduct road construction works. Still, the launch of a mobile plant is still a more modern approach, because in this case transport costs are significantly reduced, and work is done much faster, moreover, a small mobile plant loses much less money during its downtime.

In most cases, it is better to be located within a large settlement, although if large-scale construction of the roadbed is planned on any part of the route, located far from the settlements, but close to the construction site, the asphalt concrete plant will probably receive a contract for the supply of material.

The technology for the production of asphalt involves the use of gravel, sand and gravel, which serve as the basis for the production of stone material, and the binding substance is bitumen or mineral powders. In simple terms, asphalt is produced by mixing all the components, however, all this is done only at high temperatures, because only in this case bitumen can fasten the components together.

The composition of the equipment may vary depending on the chosen technology, but usually includes a cleaning system, heating and mixing units, storage and dosing of bitumen, special installations for modifying the characteristics of mixtures, as well as a general control system.

The most favorable prices for equipment are offered by suppliers from China, European counterparts will cost an order of magnitude more expensive, but in this case more complete support will be provided and the quality of the machines will be guaranteed. You can find many representatives of foreign companies in Russia, which allows you to contact them directly without conducting other negotiations with foreign companies. The cost of a full mobile plant starts with about one and a half million rubles, equipping the smallest stationary plant will cost several times more and can reach 10 million rubles. In some cases, a relatively large plant may require investments of several tens of millions.

Equipment suppliers must train customer personnel to work with all devices. It should be noted that the manufacture of equipment may take some time, which is usually initially specified by the manufacturer. Also, an entrepreneur should think about buying his own fleet of specialized equipment, because it can be much more profitable for him to import raw materials to his own production on his own without contacting a third-party transport company.

To work in the company, a sufficiently large number of specialists will have to be involved, and if it is planned not only to manufacture, but also to lay asphalt, you need to hire a team of workers who will carry out construction work. At its core, this represents the conduct of two different types of business at the same time, which is why it makes sense to consider the option of cooperation with any third-party company. Equipment operators, loaders, drivers, auxiliary workers will be required, and several departments can be created at the enterprise to manage individual processes of the enterprise. Differentiation of functions and responsibilities will allow more efficient management of the organization and optimize the entire work of the production process. However, all business processes that are not related to profit-making by an organization can be outsourced. Depending on the size of the enterprise, a staff of several dozen people may be required, but a small plant can serve significantly fewer people.

The entrepreneur must also constantly monitor the latest innovations in the field of asphalt production. Due to the fact that this material is often used in construction and in large volumes, many companies are developing any more advanced technologies. In some cases, even franchise agreements are offered, and a businessman who does not dare to start his own business without the support of a more experienced company may consider such proposals. But in any case, you will have to spend a lot of effort on finding customers, this is especially true if there are a large number of competitors. However, you should post information about yourself on thematic portals on the Internet, perhaps even create your own website on which there will be a specified offer of cooperation companies.

Such a business can be a promising undertaking, if you select high-quality and reliable equipment, find nearby suppliers of raw materials, business partners and potential customers. However, the launch of this type of business will require several million rubles, and sometimes several tens of millions. However, such a direction may be of interest to investors or credit organizations, so it will be possible to find funds in the form of borrowed capital to start.

Matthias Laudanum

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08/18/2019

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