THE FEDERAL UNIVERSITY OF TECHNOLOGY, AKURE

SCHOOL OF ENGINEERING AND ENGINEERING TECHNOLOGY

DEPARTMENT OF INDUSTRIAL AND PRODUCTION ENGINEERING

A FEASIBILITY REPORT ON ECOPLAST RECYCLING COMPANY

IPE GROUP 01

S/N NAME MATRIC NO

1 ABEBI JAMES BOLUWATIFE IPE/20/5705

2 ADEDIWURA ABUBAKRY ADEDAYO IPE/20/5710

3 AKANGBE SOFIAT OMOTOLANI IPE/20/5717

4 ARIYO ANSLEM AYOMIDE IPE/20/5725

5 FAJUYI DANIEL AYOBAMI IPE/20/5733

6 GODMAN PROSPER OLUWAROTIMI IPE/20/5738

7 MUDATHIR ABDULMUJEEB ADEWALE IPE/20/5747

8 OLUWAFEMI COVENANT OLUWASEYIFUNMI IPE/20/5760

9 OSENI DANIEL TIOLUWANIMI IPE/20/5764

10 SAMUEL GBEMISOLA RACHAEL IPE/20/5771

11 KUKOYI QAZEEM OLUWAGBEMILEKE IPE/22/2167

SUBMITTED TO:
DEPARTMENT OF ENTREPRENEURSHIP MANAGEMENT TECHNOLOGY
IN PARTIAL FULFILLMENT OF CONTINUOUS ASSESSMENT
FOR
INTRODUCTION TO ENTREPRENEURSHIP (ENT 301)
LECTURER IN CHARGE: DR. (MRS) DORCAS OKE. 23RD APRIL,

2024.

EXECUTIVE SUMMARY

Our feasibility report outlines the establishment of a plastic recycling plant company dedicated to
addressing environmental challenges and promoting sustainable practices. This summary
provides an overview of our business venture, focusing on our mission, market strategy, and
competitive advantage.

EcoPlast Recycling Company aims to revolutionize the plastic recycling industry by providing
innovative solutions for plastic waste management. We are committed to mitigating
environmental degradation while fostering economic growth. Through cutting-edge technology
and efficient processes, we seek to transform plastic waste into valuable resources, contributing
to a cleaner and greener planet. EcoPlast Recycling Company will secure funding through a
combination of equity investment and loans, enabling the acquisition of state-of-the-art
equipment and the development of necessary infrastructure. With a robust financial strategy in
place, sustainable growth and profitability will be ensured.
Our operation will require a comprehensive array of cutting-edge recycling equipment, including
shredders, washers, extruders, and pelletizers. These technologies will enable us to efficiently
process various types of plastic waste, ensuring high-quality output.To establish a strong market
presence, we will adopt a multi-faceted marketing strategy. This includes forming strategic
partnerships with waste collection centers, industries, local scavengers and consumer recycling
programs. Additionally, we will leverage digital marketing and social media platforms to
enhance brand visibility and engage with potential customers. By targeting various sectors such
as manufacturing, packaging, and construction, we aim to tap into diverse market segments and
meet their recycling needs effectively.
The global demand for sustainable solutions to plastic waste management is on the rise, driven
by increasing environmental awareness and regulatory pressures. Our business aims to capitalize
on this growing market, catering to the needs of industries, municipalities, and environmental
organizations worldwide. By providing high-quality recycled plastic materials, we aim to address
the demand for eco-friendly alternatives and contribute to the circular economy.
EcoPlast Recycling Company will ensure a robust production capacity, capable of processing
1500 metric tons of plastic waste annually. We will establish flexible production lines and
efficient workflow management so as to ensure optimal utilization of resources, minimizing
downtime and maximizing output. By operating at full capacity, we aim to maximize revenue
generation and enhance profitability
Additionally, our experienced management team brings a wealth of knowledge and expertise in
both the environmental and business sectors, positioning us as leaders in the industry.

Based on extensive market research and projected demand, we anticipate steady revenue growth
over the next several years. Our comprehensive financial plan includes achievable sales targets,
cost management strategies, and investments in marketing and expansion initiatives. With
prudent financial management and a focus on operational excellence, we are confident in our
ability to achieve sustainable growth and profitability.
 1. INTRODUCTION

Name of Company
EcoPlast Recycling Company
A Limited Liability Company
Project Location
Asejire Industrial Area, Ibadan-Ilesha, Express Way, Oyo State. This Location is selected among
the list of locations considered due to many factors taken into consideration this includes factors
such as proximity to plastic waste source, transportation infrastructure, environmental impact
assessment, space/size and cost requirements.
The selected location is a former plastic recycling site that is listed for sales due to financial
issues faced by the company. This helps in reducing the cost of the project since most facilities
are available with purchase whereby renovation of buildings and construction of few others will
be required.
Due to the location of the site being in an industrial area, transportation infrastructure as a good
road is readily available without the need of providing this from scratch.
Adequate space is also available for construction of administrative offices and also for future
expansion.

History of the Business

The plastic recycling business in Nigeria has a relatively recent history, marked by both
challenges and opportunities. While recycling as a concept has been practiced informally for
decades, organized and large-scale plastic recycling operations began to emerge in the country in
the late 20th century.
In the 1990s, Nigeria experienced a surge in plastic consumption due to rapid urbanization,
population growth, and industrialization. This led to a corresponding increase in plastic waste
generation, posing significant environmental challenges such as pollution of waterways, clogging
of drainage systems, and degradation of soil quality.

Recognizing the need for sustainable waste management practices, various governmental and
non-governmental organizations initiated efforts to promote plastic recycling in Nigeria. These
initiatives aimed to raise awareness about the importance of recycling, establish recycling
infrastructure, and encourage the adoption of recycling technologies.
Despite these efforts, the plastic recycling industry in Nigeria has faced numerous challenges,
including inadequate infrastructure, limited access to technology and equipment, insufficient
investment, and regulatory issues. Informal recycling activities, such as scavenging and manual
sorting of plastic waste, have been prevalent in many communities, but often lack proper safety
standards and environmental considerations.
In recent years, there has been a growing recognition of the economic and environmental
benefits of plastic recycling, leading to increased interest and investment in the sector.
Government policies and regulations aimed at promoting waste management and environmental
sustainability have also provided impetus for the growth of the recycling industry.
Today, the plastic recycling business in Nigeria continues to evolve, with both small-scale and
large-scale operations striving to address the challenges of plastic waste while creating
employment opportunities and contributing to the economy. Efforts to improve recycling
infrastructure, enhance technological capabilities, and promote sustainable practices are essential
for the continued growth and success of the plastic recycling industry in Nigeria.

Nature of Industry
The plastic recycling industry plays an essential role in mitigating plastic pollution and fostering
a circular economy. It operates as a comprehensive reprocessing system, transforming discarded
plastic waste into valuable resources for new products.
The process commences with the collection of plastic waste from diverse sources such as
households, commercial establishments, industrial facilities, and public spaces. Collection
strategies encompass organized municipal programs, informal waste picking, and even
community-based initiatives. Establishing efficient collection systems forms the cornerstone of
plastic recycling, guaranteeing a steady stream of raw material for processing.

Once collected, the plastic undergoes a meticulous sorting and processing stage. This phase
involves meticulously separating various plastic types, often employing a combination of manual
sorting, advanced machinery, and automated systems. This segregation is critical as different
plastics require specific recycling processes to optimize results. Following sorting, the plastic
undergoes cleaning, shredding, and transformation into usable raw materials like flakes, pellets,
or granules, essentially preparing them for their next life cycle.
The industry utilizes a diverse portfolio of recycling technologies to achieve this transformation.
Mechanical recycling, the most prevalent method, involves melting down the plastic waste and
remolding it into entirely new products. However, innovation is constantly driving progress.
Chemical recycling breaks down plastic molecules into their basic building blocks, enabling their
utilization in the production of entirely new materials. Additionally, some technologies focus on
energy recovery, employing processes like pyrolysis or gasification to convert plastics into fuels
or even electricity.

The culmination of this recycling journey is a range of valuable materials employed in everyday
products. Recycled plastic finds its way back into packaging, construction materials, textiles like
clothing, automotive parts, and even consumer goods. A robust market demand for these
recycled materials is vital for the economic viability of the entire plastic recycling industry.
Factors such as government policies promoting sustainability, consumer preferences for
eco-friendly products, and corporate commitments to environmentally conscious practices all
significantly influence this market demand.

Project Objectives
We aim to build a sustainable future through plastic recycling.Our company is committed to
environmental responsibility and economic prosperity. We aim to achieve this by:
● Preserving our planet: Diverting plastic waste from landfills and ecosystems to conserve
resources and combat pollution.
 ● Recovering valuable resources: Recycling plastic reduces reliance on virgin materials
and lowers greenhouse gas emissions.
● Promoting a circular economy: We prioritize reusing and repurposing plastic to minimize
waste and maximize resource efficiency.
● Stimulating economic growth: We create jobs and invest in recycling infrastructure to
benefit the economy.
● Fostering collaboration: We engage with communities and stakeholders to raise
awareness and promote responsible waste management.
● Embracing innovation: We actively explore new technologies to improve plastic
recycling processes and product development.
● Operating responsibly: We adhere to all environmental regulations and industry
standards for sustainable plastic recycling.

By prioritizing these objectives we can create a circular economy where resources are used
efficiently, waste is minimized, and environmental impacts are reduced for the benefit of present
and future generations.

Founding Partners

1. Chief Executive Officer (CEO)

Mr. Fajuyi Daniel brings extensive experience in company leadership, strategic planning,
and business development within the business sector. His proven ability to navigate
complex environments and drive growth will be invaluable in establishing the plastic
recycling company.
2. Chief Financial Officer
Dr. Kukoyi Oluwagbemileke leverages his Ph.D. in Financial Accounting to ensure
financial stability and strategic resource allocation. His expertise will be crucial for the
company's financial success in the plastic recycling industry.
3. Chief Operations Officer
 Mr. Abebi James - While his background lies in economics, Mr. James' proven track
record in sales operation, project management, and leadership provides a strong
foundation for managing the day-to-day operations of the recycling facility.
4. Chief Marketing Officer
Dr. Godman Prosper’s expertise in marketing and market research will be instrumental in
developing and executing successful marketing strategies to promote the company's
recycled plastic products and build brand awareness.
5. Head of Legal
Ms. Samuel Gbemisola- Ms. Samuel's legal expertise, gained through her law degree and
experience as a practicing attorney specializing in corporate law, ensures the company
remains compliant with regulations and safeguards its interests.
6. Head of Technology
Dr. Ariyo Anslem- Dr. Ariyo's Ph.D. in Industrial Engineering provides a strong
foundation for exploring innovative technologies and advancements that can potentially
optimize the plastic recycling process.
7. Business Development Manager
Mr. Oluwafemi Covenant- Mr. Oluwafemi’s experience in business development and
communication skills will be crucial in securing strategic partnerships and establishing
new client relationships within the plastic recycling market.
8. Quality Control Manager
Dr. Adediwura Abubakry an experienced Production Engineering will be responsible for
ensuring that quality product are produced and also quality equipment are supplied this
will be crucial for creating a better image for the recycling company
9. Customer Service Representative
Ms. Akangbe Sofiat's communication skills and experience offer a valuable asset in the
role of Customer Service Representative. She will be responsible for educating customers
about the company's recycling services and fostering positive relationships.
10. Logistics Coordinator
Mr. Mudathir Abdulmujeeb's experience in logistics and supply chain management is
essential for the sourcing of supply and also in transporting of products to the customer.
11. Health Safety Environment (HSE) Manager
Dr. Oseni Daniel has a background in environmental science and safety engineering, with
a strong understanding of environmental regulations and safety protocols. His will will be
required to ensure strict compliance with the safety and environment regulations .
 2. MARKET FEASIBILITY

Market Description
The primary market for plastic recycling business comprises plastic manufacturing companies
located throughout Nigeria, with a focus on major consumption centers like Lagos, Kano,
Ibadan, Port Harcourt, and Abuja. Additionally, export opportunities exist to neighboring African
nations and potentially overseas markets. Our company will focus and operate within the local
market in the country by serving the plastic manufacturing industry in Nigeria since our product
is a raw material for these industries.
Road transportation remains the dominant mode for plastic pellets due to the limited reach of the
Nigerian railway network. EcoPlast Recycling Company will enlist the use of trucks for
distribution of our product to our customers. To ensure efficient delivery and control, EcoPlast
will employ a direct sales model. We will establish relationships with manufacturing companies,
eliminating the need for intermediaries. Strategically located warehousing will minimize
transportation costs and ensure timely deliveries.

Marketing Programme
The plastic recycling industry is undergoing a significant transformation, driven by growing
environmental concerns and rising demand for sustainable materials. Presently, the major
marketing practices of the existing companies includes Specialization. Many companies are
moving away from a "one-size-fits-all" approach and specializing in recycling specific plastic
types (e.g., PET bottles, HDPE containers). This allows for optimized processing based on the
unique characteristics of each plastic and caters to specific market demands. Apart from
specialization Collaboration is crucial. Recycling companies are forming partnerships with waste
collectors, municipalities, and even manufacturers to establish a steady supply of plastic waste.
Additionally, partnerships with manufacturers who utilize recycled plastic create a closed-loop
system and ensure a stable market for the company's outputs.

Selling Organization:
Our company will build an in-house sales team that allows for close relationships with target
customers, particularly manufacturers actively seeking sustainable materials for their products.
This approach enables customization of offerings and fosters long-term partnerships. Despite the
direct sales method being employed, we also aim to leverage established distribution networks to
provide a wider market reach and quicker access to potential buyers. Partnering with distributors
who specialize in recycled materials can be particularly beneficial.

Terms of Sales:

Our term of sales to our client will be competitive and clear by establishing formal contracts with
customers which will help solidify relationships and outline pricing structures. Pricing will be
based on the type of plastic, volume purchased, and current market conditions.Also by offering
flexible payment terms, such as credit periods, we can incentivize new customers and improve
cash flow.

Channels of Distribution:

EcoPlast will employ the use of efficient and cost-effective distribution methods. This includes
Delivery Trucks and Logistics Partnerships. Owning a fleet of delivery trucks allows for direct
transportation of recycled plastic pellets to buyers, particularly those located within a reasonable
distance while collaborating with established logistics companies provides access to a wider
network and expertise in handling bulk materials across the country.

Promotion and Advertising Plans

Considering that our target for sales are the industries with a high consumption of plastic
materials, a multi-pronged approach is most effective:
Development of a Professional Website: This will showcase our company's recycling process,
highlight sustainability efforts, and provide clear information about the types of recycled plastic
we offer. We also plan to participate in Industry Trade Shows. This will help us to network with
potential customers, generate leads, and promote our brand.
Digital Marketing Campaigns: We will utilize targeted social media advertising and search
engine marketing to reach our ideal customers online.

Packaging of Plastic Pellets

Bulk bags are the industry standard for storing and transporting plastic pellets. These are
typically large, durable woven polypropylene bags that can withstand significant weight and
protect the pellets during transportation. We Consider incorporating our company logo and
branding elements on the bulk bags. This will promote brand recognition and professionalism.

Economic Contributions
Plastic recycling companies are crucial contributors to a nation's economic well-being. The influence
extends beyond environmental benefits, generating a positive ripple effect across various sectors
Our company will act as a significant job creator, offering opportunities at various skill levels. This
includes:
Operations: Collection and sorting personnel, machine operators for processing facilities, quality control
technicians, logistics coordinators
Technical and Professional: Engineers for optimizing processes, technical staff for equipment
maintenance, research and development personnel exploring new technologies.
Sales and Marketing: Professionals dedicated to promoting recycled plastic pellets to manufacturers and
fostering market demand
Management and Administration: Business leaders, administrative staff ensuring smooth operations and
financial management.

Apart from employment generation, our company like others in the plastic recycling industry will ensure
Manufacturing Enhancement by providing recycled plastic pellets as a reliable source of raw material,
directly supporting domestic manufacturing. Hence lessens dependence on imported virgin plastic,
promoting self-sufficiency and potentially lowering production costs for utilizing manufacturers and also
creates a stable supply chain for recycled plastic, fostering growth and innovation within the plastic
products sector.
In Addition, our company will also contribute to environmental and economic sustainability through the
diversion of plastic waste from landfills, minimizing environmental pollution and associated costs of
landfill management. Reduction in greenhouse gas emissions associated with virgin plastic production,
aligning with national and international sustainability goals. Promotion of circular economy where plastic
waste is transformed into valuable resources, minimizing environmental footprints and creating long-term
economic benefits.

Taxes Revenue Generation

As registered business, our plastic recycling company will contribute significantly to government tax
revenue through various channels:
● Corporate Income Tax: These are Taxes levied on the company's profits, providing a direct source
of income for the government.
● Value Added Tax (VAT): VAT are taxes collected on sales of recycled plastic pellets, contributing
to government revenue streams.
● Import Duties: This is the tax the company pays when the company imports the start up
equipment and machinery, import duties generate additional tax revenue.
● Withholding Taxes on Employee Salaries: Taxes deducted from employee salaries contribute to
government coffers.
 3.TECHNICAL FEASIBILITY
This section of the report outlines the technical feasibility of establishing our plastic recycling
company, focusing on the production of high-quality recycled plastic pellets.

About Products
Recycled Plastic Pellets. The primary product will be commercially viable recycled plastic
pellets derived from post-consumer plastic waste. These uniform pellets will be free of
contaminants and meet industry standards for various applications.
The pellets will be of consistent size of 5 mm diameter and of natural color, with density varying
based on the specific plastic type recycled.
Tensile strength, impact strength, and melt flow index (MFI) will be rigorously tested to ensure
they meet industry standards for targeted applications.
Chemical composition will be analyzed to guarantee freedom from impurities and adherence to
regulations for recycled plastic content in various products.
Sales prices: The price of a recycled plastic is typically cheaper than that of virgin plastic. As at
present the recycled plastic is sold at #200, 000 per ton while that of virgin plastic is priced at
#600, 000 per ton in Nigeria.

Raw Materials
The primary raw material for a plastic recycling plant is post-consumer plastic waste. This
encompasses various plastic items discarded after use. The six most common types of plastics
which can easily be recycled. The plastics industry has
voluntarily devised a coding system which makes recycling plastics easier. Table 1 shows these
6 types of plastics with their identification code, general properties and common uses.

Type of Plastic Identification Code General Properties Common Uses

Polyethylene PET Clear, Hard, Tough, Mineral water bottles

Terephthalate Resistance to heat, Cooking oil bottles
(PET/PETE) grease/Oil, Barrier to Detergent Jars
gas and water Soda bottles
 Strappings

High Density HDPE Chemical resistant, Jerry can

Polyethylene (HDPE) natural milky white Milk packaging
color, Soft waxy Bottle caps
surface, Permeable to Toy
gas, Hard to semi Rigid Pipes
flexible, Strong

Polyvinyl Chloride PVC Good chemical Pipe and fittings

(PVC) resistant, Transparent, Credit card
Electrical insulation, Window frames
Long term Stability, Wire and cable
Hard and rigid sheathing
Floor covering
Shoe soles and upper

Low Density LDPE Tough, Flexible, Refuse sack

Polyethylene waxy surface, Soft, Bubble wrap
(LDPE) Stable electrical Flexible bottles
properties, Low Packaging films
melting point, Wire and cable
Moisture barrier application

Polypropylene PP Translucent, Strong, Car battery case

excellent chemical Medicine bottles
resistance, High Crates
melting point Plant pots

Polystyrene PS Clear to opaque Fast food tray

Glassy surface Disposable cutlery
Brittle Coat hangers
High clarity Yogurt container
Affected by fats and
solvent

Others Plastic OTHERS Mostly not available

in large quantities

Table 1: Types of Plastic

The specific requirements for plastic waste as a feedstock depends on chosen processing
technology and target market. Here are some general considerations:
Cleanliness: Plastic waste should be relatively free from contaminants like food residue, labels,
or other materials that can hinder processing and compromise the quality of recycled pellets.
Moisture Content: Excessive moisture content can negatively impact the recycling process.
Ideally, the plastic waste should be relatively dry.
Resin Type: Accurate sorting by resin type is crucial. Mixed plastics can create challenges during
processing and may require additional separation techniques.
Cost: Cost: The cost of plastic waste feedstock can fluctuate based on market demand, oil prices
(virgin plastic prices often influence recycled plastic prices), and transportation logistics. In
Nigeria as of present the price for plastic waste commonly bottles is relatively stable at 1kg at
#30 equivalent to 1 ton at #30, 000.

Availability, Continuity of Supply, and Sources

The availability of plastic waste feedstock can vary depending on location. Our supply of raw
material will be;
Municipal Waste Collection: Collaborating with local waste management authorities to access
plastic waste collected through curbside recycling programs.
Commercial Waste Haulers: Partnering with waste haulers who collect plastic waste from
commercial establishments like restaurants, offices, and retail stores.
Industrial Plastic Scrap: Manufacturing facilities often generate plastic scrap during production
processes. We will explore opportunities to collect these clean scraps directly from industries.
To ensure supply continuity, we will ensure diversification of our source by not relying on a
single source. By establishing relationships with multiple suppliers, we will mitigate the risk of
disruptions and ensure a more consistent flow of plastic waste feedstock. Also we will consider
sourcing plastic waste from a wider geographical area to minimize dependence on local
fluctuations in availability. These include sourcing from all South western parts of Nigeria.

Processing Activities
Collection of waste plastic
An important first step in starting a plastic recycling business is setting up a collection system of
waste plastics. A constant supply of raw materials to the factory is of utmost importance for the
existence of the business. Collection of waste plastic may already happen through the activities
of scavengers, middlemen and traders. It is possible to integrate this system by letting them know
that the factory is willing to buy plastic waste material. Another option is to cooperate with the
municipality to get involved in collection schemes accompanied with a public awareness
campaign. In this way the public can be informed about the advantages of plastic recycling. Our
mega suppliers are from South west of Nigeria as this is feasible with the project location.

Storage
The plastic recycling enterprise needs quite a large storage space in order to store all collected
waste items, processed materials and finished products. Plastic waste items, especially chemical
barrels and cans which we have planned to collect, have a large volume and therefore a large
storage place is necessary. Hence we plan on expanding and renovating the existing storage area
of the plant site.

Sorting and identification

Plastics sorting operations may be carried out manually or automatically using appropriate means
of identification. The more accurate and efficient the means of identification, sorting and
separation, the better is the quality of the recovered product obtained. Best suited for sorting
plastics is a manual process and we will use full time man power for this task. The secondary
raw material obtained by hand sorting is of high quality and offers an excellent basis for
producing high quality products by small and medium scale industry. To aid in identification, it is
now common for plastic containers to have a polymer identification code. Unfortunately, other
plastic applications do not carry such identifiers and are, therefore, more difficult to identify by
polymer type without some experience. There are several simple tests that can be used to
distinguish between the common types of polymers so that they may be separated for
processing.We will be applying the water test for identification of plastics. In this test the plastics
are mainly classified as low density and high density types. A piece of plastic is put into a
container of water and if the plastic floats, the plastic belongs to a low-density material such as
PP, HDPE, LDPE, HDPE. And if the plastic sinks, then the plastic belongs to the high-density
plastic group such as ABS, HIPS Kerasin,PBT, acrylic, PC.
However in our company this separation or segregation process, in many cases, will be achieved
by manual process utilizing the availability of cheap and expert labor force. In case the waste is
contaminated with embedded metals, proper method of separating the metals / other
contaminants are required

Washing
The scale of cleaning depends on the type of waste. Whenever a cleaning operation is involved,
it is to be ensured that the water or any other cleaning material used, should be discharged after
ascertaining that the discharge does not contain any objectionable substance. A proper Treatment
Devices may have to be deployed – like a water treatment plant / effluent treatment plant. For
drying, a suitably designed drier will be used. Many smaller industries use open space for
natural drying of the cleaned waste. If the plastic is dirty, cleaning is necessary.
The main cleaning steps which we are planning to apply:
- Draining of remaining fluids from containers into prepared collection barrels.
-Rough cleaning of plastic containers and other pieces of plastic.
- Removing paper, plastic or metal stickers.
- In the case of PET bottles removing caps and etiquettes.
- Intensive washing in cold or hot water with addition of detergents or caustic soda. The waste
water can be reused by installing a simple waste water treatment system like a sedimentation
basin

Cutting and Shredding

Cutting is usually carried out for initial size reduction of large plastic objects. It can be carried
out with a plastic cutting machine, specifically designed to cut plastic into smaller plastic pieces.
Shredding is suitable for smaller pieces. A typical shredder has a series of rotating blades driven
by an electric motor, some form of grid for size grading and a collection bin. Materials are fed
into the shredder via a hopper which is sited above the blade rotor. The product of shredding is a
pile of coarse irregularly shaped plastic flakes which can then be further processed.
Extrusion / Pelletisation
This is the most important part of the process wherein the sized / chipped plastics are plasticized
(melted) and granulated to make the plastics material ready for fabrication next. The type and
size of the Extruder depend on the type and volume of the plastics waste. The project will
commence the palletisation with new investment.

Fig 1: Production process with Flowchart

Alternative Process Considered

The method considered in the above listed processes is the mechanical recycling method.This is
the chosen process due to its established technology, proven effectiveness, lower investment
costs compared to chemical recycling, and suitability for a wide range of plastic types.
Alternatively, another method that can be used for recycling is chemical recycling. This
advanced process breaks down plastic molecules and reforms them into virgin-like plastic. It
remains costlier and more complex at present.
The mechanical recycling method is considered due to the reason below;
● Proven technology with a well-established track record.
● Lower capital expenditure compared to chemical recycling.
 ● Versatility in handling a broad spectrum of plastic resins.
Technological Assistance
We planned on consulting with reputable plastic recycling engineering firms These experts can
provide invaluable assistance in process design, equipment selection, quality control procedures
implementation, and overall plant layout optimization.
Company size and production schedule
The anticipated production capacity will be to process 1,700 tons of plastic waste annually,
translating to roughly 5 tons per day. Production forecasts are crucial for effective planning and
budgeting. Initial production volumes may be strategically lower, gradually increasing as the
company establishes a customer base and expands its operations.

Machines and equipment

Fig 2: Machine and Equipment Layout

List of Machinery and Equipment
The machine and equipment for establishing the plastic recycling plant is divided into six parts
which is listed below.

A. Pre-Processing & Sorting

1. Trommel Screen: A rotary cylindrical mesh screen that efficiently separates plastic
waste by size fractions..
2. Manual Sorting Stations: Dedicated workbenches equipped with conveyor belts allow
for meticulous manual sorting by trained personnel. This stage is crucial for removing
contaminants, managing non-recyclable materials, and ensuring high-quality feedstock
for subsequent processing.

B. Size Reduction

1. Granulators/Shredders: These robust machines utilize powerful blades to cut plastic

waste into smaller, uniform flakes or granules. Different blade configurations cater to
various plastic types and desired flake size for optimal processing downstream.

C. Washing Line

1. Washing Tanks: Large tanks equipped with agitators and precisely formulated washing
solutions thoroughly cleanse plastic flakes, removing contaminants like dirt, debris,
labels, and adhesives.l
2. Drying System: Employing either centrifuges or efficient dryers, this stage removes
residual moisture from the washed plastic flakes to guarantee optimal processing
conditions during melting and extrusion.

D. Melting & Extrusion

1. Extruder: The heart of the recycling process, the extruder heats and melts the plastic
flakes into a homogenous molten plastic mass, preparing it for shaping into pellets.
 2. Die Assembly: This component shapes the molten plastic into strands as it exits the
extruder. Different die configurations can produce pellets of varying sizes to meet market
demands.

E. Pelletization & Finishing

1. Pelletizer: This equipment precisely cuts the extruded plastic strands into uniform pellets
of the desired size, ready for packaging and distribution.
2. Water Bath/Cooling System: This system rapidly cools and solidifies the extruded
plastic strands or pellets, ensuring proper form and stability for storage and
transportation.
3. Silos and Storage Bins: Secure and appropriately sized storage containers hold the
finished recycled plastic pellets until packaging or transportation to customers.

F. Additional Equipment:

1. Air Classifier System: Utilizing air pressure, this system separates lightweight
contaminants (like labels or films) from heavier plastic flakes, further refining the
processed material.
2. Metal Detectors: Ensuring the integrity of the recycling process, metal detectors identify
and remove any metal fragments that may have entered the plastic stream, preventing
equipment damage during processing.
3. Conveyor Systems: A network of conveyors efficiently transports plastic materials
between different processing stages throughout the facility, optimizing workflow and
minimizing manual handling.
All the machines and equipment listed above will be sourced for and purchased both locally and
internationally. This is done so as to ensure quality, consistency of the product produced, also to
make production easier, faster and efficient while ensuring cost benefits balance.

Building and Facilities

The success of a plastic recycling plant hinges on a well-designed and strategically developed
site. This includes selecting appropriate building types, ensuring cost-effective construction, and
implementing essential land improvements that prioritize both functionality and environmental
compliance. Building requirements are:

Main Processing Building: This primary structure houses the heart of the operation. It should be
spacious enough to accommodate the chosen processing equipment layout, including sorting
lines, size reduction machinery, washing systems, extruders, pelletizers, and storage silos. We
will consider incorporating design elements that allow for future expansion as production needs
evolve.

Warehouse: A dedicated warehouse provides secure storage for incoming plastic waste feedstock
and outgoing finished recycled plastic pellets.

Office Building: This structure houses administrative offices, staff facilities, and potentially a
quality control lab for testing the produced pellets.

Building Consideration

Geographical location significantly impacts land and construction costs. A thorough cost analysis
for potential sites is crucial. As stated in the introduction of this report the location of this project
is Asejire Industrial Area, Ibadan-Ilesha, Express Way a former plastic recycling site with
existing facilities. All existing facilities will be upgraded and renovated while new machines and
equipment moved in.

Building Size: The total square footage required for the processing building, warehouse, and
office space will significantly affect the overall budget. Optimize space allocation based on
chosen equipment and operational needs.

The selection of materials (e.g., prefabricated metal buildings, concrete structures)will be done
to impact both durability and cost. The road accessing the site will be restructured so as to
ensure efficient transportation of raw materials and finished products. Factors like graveling and
paving will be considered. Also, an effective drainage system is critical for managing rainwater
runoff and preventing wastewater contamination of surrounding areas, this will be provided.

Utilities and Supplies for Plastic Recycling Plants

Electricity

This is an important utility needed for the day to day operation of the company. It will be
required for powering machinery throughout the processing line (sorting systems, shredders,
extruders, pelletizers), operating lighting and ventilation systems and supplying power for
control systems and automation.

The amount of electricity required will depend on the size and capacity of the plant, the chosen
machinery, and the level of automation. For our medium scale plant we will require 150 kWh per
ton of plastic processed.

Tentative source for supply is the Local electric grid which is readily available at the site, backup
generators in case of outage will also be made available.

Water

This is required for the washing of plastic flakes to remove contaminants and also for cooling
processes during various stages (e.g., extruder cooling). Water consumption varies depending on
the washing process efficiency, size of the plant, and the chosen equipment. For the size of our
plant, 4 cubic meters of water per ton of plastic processed will be required. Our tentative source
of supply will be Industrial well which is also available on site because of the nature of the site
as an Industrial area.

Supplies

This included other supplementary equipment needed such as;

Cutting blades and screens (for shredders and sorting systems)

Conveyor belts (for material transport)

Wash solution chemicals (for cleaning plastic flakes)

Lubricants and coolants (for machinery maintenance)

Personal protective equipment (PPE) for staff.

Plastic Recycling and Waste Disposal

Within the plastic recycling industry, effective management of non-recyclable plastic waste is
critical for both economic and environmental sustainability. This section details the typical waste
pstream, disposal methods, alternative approaches, and cost considerations.

Non-recyclable plastic waste encompasses materials unsuitable for conventional recycling

processes due to various factors such as contamination due to food residue, oil, or other
substances adhering to the plastic render it unusable in the recycling stream. Plastics that have
become brittle, cracked, or significantly degraded lose their structural integrity and cannot be
effectively reprocessed, this also becomes a source of waste. Plastic that are not suitable for
processing is also a source of waste.

Typical Waste Disposal Method

Landfilling remains the most common disposal method for non-recyclable plastic waste. While it
offers a seemingly cost-effective solution, it presents significant drawbacks like limited Landfill
capacity and Environmental degradation. Hence, several alternative approaches are gaining
traction as the limitations of landfilling become more apparent these alternatives imcludes;

Waste-to-Energy Facilities: These facilities utilize non-recyclable plastics to generate electricity

through a controlled combustion process. However, concerns regarding air pollution emissions
necessitate stringent regulations and advanced technology adoption.

Chemical Recycling: This emerging technology breaks down plastic waste into its base chemical
components, enabling their reintegration into virgin plastic production. While promising,
chemical recycling requires further development to become a commercially viable and
environmentally sound solution.

A Breakdown of Unit Production Cost

OPERATION UNIT BREAKDOWN

Collection and Transportation - Labour

- Fuel
- Vehicle Maintenance

Sorting and Processing - Labour Cost for manual sorting

Washing - Wastewater Treatment

Size Reduction - Maintenance Cost

Labour - Machine Operators cost

- Packaging Laborer

Facilities Overhead - Lease

- Utilities ( electricity and water)
- Administrative expenses

Waste Management - Transportation

- Landfill Fee

Table 2: Unit breakdown Cost

NB: The above information will be used for financial analysis.

 4. FINANCIAL FEASIBILITY
Financial Assumptions and Financial Arrangements
In arriving at financial estimates various realistic assumptions were made. The assumptions are:
1. 50% of the initial capital outlay will be sourced from the bank at 20% interest
opportunity cost of capital.
2. The current price per kilo gram of recycled plastic is #200.
3. The engine can work for 300 days in a year and produce 3 tons(3000kg) per day.
4. Loan repayment will start as from the first year of the business and on equal
installments.
5. Interest will be calculated using declining balance with equal installments.
6. Depreciation (straight line method) for the various machinery and equipment are as
follows:
- Machines like Shredder, Extruder and others can last for 10 years
- Machine operators equipment can last for 10 years.
- Both the machine shed and operator's office will last for 10 years.
- The vehicle has no depreciation value after 5 years.
- The spare parts include saw shredding blade, rewinding of the motor, bearings and other
accessories.
7. Variable costs will be rising yearly by 15%.
8. Revenue will be rising yearly by 5%.
The project both secure capital using both Equity and Non equity funding
Based on the above, various measures of investment worthiness were
undertaken and the results are as shown below.

Table 4: Estimated Start up Cost

Initial capital outlay Price (₦)

Trommel screen 12,800,000

Manual sorting room/benches 1,722,775

 Granulators/Shredders 7,500,000

Washing tank 4,500,000

Drying system 3,000,000

Extruder 8,000,000

Die assembly 950,000

Pelletizer 120,000

Water bath/cooling system 950,000

Silos and storage bins 60,000

Air classifier system 29,000

Metal detectors 4,500,000

Conveyors Systems 400,000

Trucks 15,000,000

Site Acquisition 3,500,000

Building/Site Restructuring 1,950,000

Preliminary and Pre-operative expenses (Consultancy, e.t.c ) 800,000

Registration with CAC and SMC 90,000

TOTAL ₦ 65,871,775

Table 5: Operating Expenses for the First Year

1 Manager( #50, 000/ month) 600,000

2 Operators and 4 assistants 1,000,000

Laborers 600,000

Equipment servicing ( every month) 240,000

Electricity 6,000,000
 Fuel and Diesel 1,150,000

Security guards 120,000

Raw material supply 10,800,000

Packaging 600,000

Taxes 2,000,000

TOTAL 23,010,000

Table 6: Summary of Cost

Fixed Capital 65,871,775

Operating Cost 23,010,000

Contingencies at 2.5% of the fixed Capital 1,646,795

Table 7: Return for the First Year

Recycled plastic Pellets @#200/kg 180,000,000

Transportation of customers product 3,000,000

TOTAL 183,000,000

Table 8: Total cash flow for the first 5 years of running the company

Yea Cost Revenue Incremental Discounted Factor NPV @20%

r benefits @20%

0 67,518,567 - (67,518,567) 1 (67,518,567)

1 23,010,000 183,000,000 159,990,000 0.8333 133,319,667

2 26,461,500 192,590,000 166,128,500 0.6944 115,359,630.4

3 30,430,725 201,757,500 171,326,775 0.5787 99,146,804.7

4 34,995,409 211,845,375 176,849,966 0.4823 85,294,738.6

5 40,244,700 222,437,650 182,192,950 0.4019 73,223,346.6

788,969,624 438,825,620

NPV = #438, 825, 620. 23

Payback period = Cash Outlay/1 year Cash inflow * 12

= 6758567/159990000*12

= 5 month

Profitability Index = 133319667/67518567

= 1.97
 5. CONCLUSION AND RECOMMENDATION

Our comprehensive feasibility report on establishing a company plastic recycling facility paints a
nuanced picture. While the market for recycled plastic exhibits undeniable growth potential,
fueled by heightened environmental consciousness and stricter regulations, navigating the
industry's complexities and managing operational costs effectively will be paramount to success.

As regards the calculated value done from Table 8, the NPV value shows that the project is
profitable with good margins. Also from the calculation, it has shown that it will take the
company 5 months to pay back the loan given that the discount rate is at 20%. Profitability Index
is further used to determine the profit index and from the value obtained (1.97) it proves that the
project can be invested on as the value is greater than 1 . Considering the financial projections
and market analysis, we recommend one of the following courses of action:

● Full Project Development: The compelling market outlook and potential for
profitability warrant proceeding with the development of the plastic recycling facility. To
achieve this, a meticulously crafted implementation plan is crucial. This plan should
encompass robust strategies for cost management, securing reliable partnerships with
both waste suppliers and plastic buyers, and navigating the regulatory landscape with
agility.
● Further Due Diligence: If significant uncertainties persist regarding market demand,
operational cost structure, or the evolving technological landscape, further due diligence
is recommended. Options for this could include conducting pilot studies, undertaking
in-depth competitor analysis, or engaging in consultations with established industry
experts. These steps will refine the project plan and mitigate potential risks.

Whichever path is ultimately chosen, an unwavering commitment to sustainability should be

central to the company's mission. Integrating energy-efficient technologies, actively exploring
innovative recycling methods, and establishing partnerships that promote responsible waste
management practices throughout the plastic lifecycle are all essential considerations. By
adopting these practices, the company can not only achieve financial success but also contribute
significantly to a more sustainable future.