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¶ … cardboard factory in Jeddah, Saudi Arabia. The factory will be able to produce 50 tons of cardboard per month. The plant requires 10,000 m2 of land, which has already been acquired in an industrial area.
Finances
The budget for the plant is $700,000 U.S., with $400,000US going towards the equipment. The equipment needed for the project will be:
layer corrugated cardboard production line
Gluing machine
Flexo printing machine
Stitching machine
Die cutting machine
Box making machine
The remaining funds will be used as follows:
Working Capital ($100,000)
Raw materials Inventory ($100,000)
Building upgrades and leasehold improvements ($100,000)
The Market
Saudi Arabia is a growing economy and the demand for materials such as corrugated boxes is high, to support the nation's growing manufacturing base. Much of the industrial capacity of the country is situated along the Red Sea coast, especially the cities of Jeddah and Mecca, home to multiple economic development...
The combined population of the area is close to 7 million people (just under 1/4 of the country's population). However, Jeddah is also 3-4 hours from the industrial area of Yanbu. Thus, our factory will serve two of the four largest industrial markets in the country, the second-largest city (Jeddah) and the country's largest and most important port. The potential market therefore is substantial, much more than our proposed initial capacity.
Organizational Structure
The organization will be based on a traditional hierarchical structure, with the CEO and President at the head of the company. There will be four divisions, based on functions. These are operations, human resources, finance and marketing. Each division will have a Vice President, reporting back to the CEO. There will be sub-managers for each area of the different departments.
Human Resources
The plant is expected to have a high level of automation. The requirement for the entire plant including office staff is expected to be 50-60 workers in total. The…
References
Saudi Embassy. (2013). Industrial cities. Embassy of the Kingdom of Saudi Arabia to Washington, DC. Retrieved February 25, 2014 from http://www.saudiembassy.net/about/country-information/economy_global_trade/industrial_cities.aspx
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