Cement production as a business

Business ideas by directions

Cement can be called, perhaps, the most common material in construction. Despite the huge number of new technologies used in construction, cement continues to serve as the basis for most other building materials .
Without a doubt, cement has become one of the most important inventions of mankind.
The ability of cement to quickly harden, creating durable waterproof structures, made it possible to completely change both the method of construction and the architecture of structures. Demand for cement is constantly growing, despite the significant supply of this material on the market. Therefore, the desire of many entrepreneurs to make money in the production of cement is quite understandable and understandable.

High competition in the production of this material makes entrepreneurs carefully calculate their costs and take seriously the planning and management of the enterprise.

Important components of success in this type of business are a sound business plan and an accurate economic calculation.

To create cement production as a business, as a first step, you need to conduct market research, which will allow you to choose the best technology option.
The choice of cement production technology depends not so much on the possibility of investment, but on the composition of the raw materials that are available.
For the production of cement, various components and related additives can be used. The main components are clay and various carbonate rocks such as limestone, chalk, gypsum and so on. Often, ash and various plasticizers are also used in the production of cement. In some technologies, water is used as another main component of the raw material. Although more often in the production of materials, a dry processing method is used.

Cement production technology

The principle of cement production provides for the crushing of the constituent parts of the future product, followed by firing, to create the so-called clinkers, particles that serve as the basis for the future building material.
The most important elements of equipment, in almost any technology, are crushing devices and kilns.
Since clay and limestone are the most common raw materials for the production of cement, it is extremely important for the organization of production to have nearby deposits of both materials. When planning a business, it must be taken into account that in order to develop deposits, it will be necessary to obtain rather expensive licenses. Of course, the raw materials for cement production can also be purchased from third-party organizations, but this will significantly increase the cost of the finished product and reduce the profitability of production. The extracted limestone is crushed in special crushing machines. At the same time, in mill-mixers, it mixes and grinds clay with the addition of water. Then the components are mixed in ball tube mills, the composition is corrected and the resulting mixture is sent to a special kiln, where the components are sintered into clinker particles.

Cement production equipment is quite expensive. Depending on the volume of production, the price of equipment can range from several thousand to several hundred thousand dollars. For start-up entrepreneurs who plan to produce limited batches of cement, it is much more profitable to purchase a ready-made cement production line, in which all production operations are combined into a single complex. This is especially convenient in the presence of small deposits of raw materials, and allows you to avoid large losses during the curtailment of production.

The profitability of cement production is quite high: it ranges from 20 to 25%, so the investment pays off within 3-5 years. For mini-factories, subject to the demand for manufactured products, the payback period can be 1-1.5 years.

The complexity of organizing such a production, as well as high initial costs, require particularly careful planning of such an enterprise. Ordering a business plan on our website provides a good opportunity to prepare the initial data for setting up a cement production facility, as well as pre-evaluate its profitability for specific conditions.