Plastic Storage Tanks Production in Nigeria

Plastic have played a vital role in the growth phase of the Nigerian economy and continue to do so. From packaging to agriculture, automobiles and electronics plastics have revolutionized all areas because of its functionality, economics, aesthetics and reliability.

Plastic tanks and water tanks store substances utilized in industrial processes, such as water, sewage, petroleum and chemicals.  They are utilized in numerous industries such as the agricultural, oil/gas, water, waste treatment, medical, scientific and pharmaceutical industries. The structure of the plastic tank varies.

Common tank shapes include cylindrical, square, rectangular, hexagonal and octagonal.  The heads and bottoms of plastic tanks also differ, according to their function.  Tanks can vary shape and size, even within the same type of application; for example, water tanks can be cylindrical, square, or funnel-shaped, and can hold anywhere from a couple gallons of water to tens of thousands.

The rotational moulding process is the most versatile area of the plastic processing industries.  Rotational moulding can be used for making stress free mouldings consisting of several layers of even different material.  The rotational moulding process is adaptable to a wide range of plastic raw materials.  Raw materials used for rotomoulded process are syntheric polymers in powder from or synthetic resin paste. With rotomoulding, parts can be moulded economically in a variety of shapes and sizes, many of them being impossible to produce by any other process.

Common rotationally moulded products include shipping drums, storage tanks, material handling pins, fuel tanks etc.

Plastic   tanks   have   several   advantages   over   the   traditional   steel   tanks.   Their   seamless construction provides them with greater impact strength and superior resistance to rust, corrosion and fuel additives.  These virtually indestructible tanks have a longer lifespan than steel tanks, which can fracture and leak. Plastic tanks can easily be moulded to fit tank compartments, unlike metal tanks, and are simple to install.  These characteristics provide savings in size, weight and cost. Plastic tanks also cost less overall than steel tanks.

Machinery and equipment needed includes rotational moulding Machines, stainless steel moulds with auxiliary machines, transformer, project vehicles, forklift, wood pallets, AGO / PMS storage tank, generator and weighing scale.

Utilize rotational molding technology to produce seamless, durable plastic tanks of varied sizes/designs

Implement stringent quality control processes and acquire relevant certifications (FDA, NSF, etc.)

Produce diverse tank range (cylindrical, vertical, horizontal, double-walled) for varied end-use applications

Financial Viability

The estimated total capital investment covers expenses for plant, machinery, molds, and working capital. Revenue projections anticipate significant growth by year 5, assuming a 70% capacity utilization rate. The financial metrics demonstrate attractiveness, with a projected payback period of under 4 years and an Internal Rate of Return (IRR) exceeding 25%. There is potential to expand capacity and product range in response to future market growth.

Key Success Factors

Ensuring reliable and cost-effective sourcing of quality plastic resins (HDPE, PP, XLPE),

Achieving production efficiencies through optimized processes and quality control,

Developing strong relationships with major industrial customers through customized solutions,

Investing in effective branding and distribution network for residential/retail tank sales

This feasibility analysis concludes that the proposed plastic storage tank manufacturing project represents a commercially viable and financially lucrative opportunity based on the considerable market demand, import substitution potential, and positive economic indicators. However, strategic sourcing, production efficiency, customer relationships, and effective marketing are critical success factors

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