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Project Planning, Funding, Engineering and Project Management Links: International Business Solutions International Fiber Consultants
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BC&T Group Value-Added Mini-Mill
Business Model
Executive Summary
In 2000, BC&T Group created a “value-added mini-mill” business model, utilizing an innovative compression molding technology produced by Sorbilite Inc, a U.S. press manufacturer. This business model allows for the conversion of waste fibers (wood waste such as sawdust, shavings, chips, pallets, etc., or agri-fiber such as wheat and rice straw, corn husks, sunflower seeds, etc.) into molded, finished panel products such as cabinetry, doors, molding, roofing and siding panels, etc.
Samples of molded and laminated products. The plan is modular, allowing for the addition of more manufacturing lines later. The base system comprises a grinding system, a dryer and mixer to achieve the correct moisture levels and add a binding agent, a double opening Sorbilite press which has a capacity of 5 pressings per hour, and a finishing line including a Sorbilite membrane press. Details of the technology may be found at www.sorbilite.com. This system requires a 30,000 square-foot building, with no special load bearing or electrical requirements. An example of the application of this business model was the construction of the first pilot plant in North America. The plant opened in 2001, and is presently being re-configured to run a multi-shift operation with three Sorbilite presses.
Interior view of the North American pilot plant operation.
BC&T Group in conjunction with its sister company, Sorbilite, is currently working with groups who intend to build similar plants in North Carolina, South Carolina and Louisiana. BC&T Group has completed feasibility analyses, the marketing strategy, a complete business plan, financial pro-forma, and equipment selection. The cost of the mini-mill, including engineering design, construction, land and building, all equipment, installation and start-up capital is in the range of $5MM to $7MM depending on configuration. The lead-time from funding closing to plant start-up is between 9 and 12 months. The “base” plant employs some 24 people when in full production, and - using approximately 6,000 tons of waste fiber annually - manufactures over 3 million square feet of finished product, typically producing EBITDA earnings of over $4.5MM. For further details on the project, please contact BC&T Group President Keith Brinksman at 412 344 9522, or ceo@bctgroup.com. |
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