Styrofoam production as a business

Business ideas by directions

The widespread use of foam in modern industries suggests the idea of ​​​​creating a business in the production of this material. Indeed, polystyrene is in demand as a heat-insulating and sound-proofing material, used in the manufacture of furniture and clothing, light boats, pontoons, life belts.

The fragility of the foam is used as a protection in the sales of household appliances and any products that require protection. The structure of the foam, consisting of separate balls, connected into a single whole under the pressure of the press, is a good example of the use of artificial materials in various fields of human activity.
However, despite the breadth of application, organizing a foam plastic business begins with a study of demand, since high competition can bring production costs to the brink of profitability.

The level of supply of foam plastic by manufacturers is quite high, a large amount of this material is produced in China, and domestic manufacturers are ready to offer as much material as is necessary for the market. However, the production of this material in a region of high demand can make this business quite cost-effective and profitable.

Ideally, if the manufacturer manages to find wholesale consumers who are ready to purchase material in large quantities, or order templates for packaging of a certain shape. In this case, it is not difficult to achieve profitability, since the organization of the production of polystyrene is not so difficult.
If there is demand, production can be organized within a few months.
This will require a fairly spacious and high room, from 150 — 200 square meters. meters. Suitable hangars, warehouses or empty workshops. Since water vapor is used in the production of foam, water supply and sewerage must be connected. Styrofoam products are quite voluminous, therefore, when planning production, it is necessary to allocate space for storing finished products.

For production, you will also need a certain set of equipment:

  • foaming line,
  • receiving bunker,
  • feeding and dosing system,
  • dryer,
  • cutting device,
  • steam generator and other equipment.

It is necessary to spend about one and a half thousand dollars for the purchase of a minimum set of equipment, but it may be more effective to purchase an automated high-performance line worth several thousand dollars.
When planning costs, it is necessary to take into account the purchase of raw materials.
Granular polystyrene is usually used as raw material. For the manufacture of one cubic meter of polystyrene, approximately 15 kilograms of polystyrene is consumed. However, it should be taken into account that the consumption of polystyrene and the quality of the finished product significantly depend on the quality of the granules. If the granules are stored for too long, the foaming process becomes more difficult. The amount of foaming depends on the freshness of the raw material, during which the granules turn into balls of ever larger size.

The amount of foaming also affects the density of the finished foam, since different foam densities are required for different purposes. Low density foam is used for heat and sound insulation, denser foam is used to create packages and decorative panels.
The profitability of foam plastic production is from 20 to 40%, such a quick payback often affects the decision to create a business.
However, to achieve such profitability is possible only with a well-established marketing of finished products and the use of a business plan to organize production.

A business plan prepared by our specialists can facilitate the stages of preparatory work and increase potential profits.