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BRASS & BRONZE ITEMS CASTINGS BUSINESS IN UGANDA

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Introduction

Brass is an alloy of copper and zinc and the proportion of copper and zinc vary in this alloy depending upon requirements of the end product. Copper alloy with tin is known as gun metal or tin bronze. This has wide application in engineering, marine and automobile industry. Copper alloy with aluminium is known as aluminium bronze. It is also extensively used in manufacturing of decorative items for our daily use. It costs US$ 36,035 with a capacity of 15,000kg yielding estimated revenue of US $ 44,994 per year.

Production Process, capacity and technology

The process of casting involves melting of the desired composition, preparation of mould cavity of sand, pouring the molten metal into mould cavity, knocking the mould after solidification and cooling of the castings, fitting and cleaning. The envisaged plant has a minimum m plant capacity of 15,000kg per annum but output can be increased tremendously when a grip on the market has been made.

Capital investment Requirement in US $

Capital Investment Item Units Qty @
Oil fired tilting furnace No 1 1,000
Weighing balance No 2 30
ladle & tongs No 2 15
Hand moulding equipment No 1 1,200
Bench grinder No 1 80
Mixing Machine No 1 500
TC of Machinery & Tools

Production costs assume 312 days per year with daily capacity of 48.1 Kgs.

Depreciation (fixed asset write off) assumes a 4 year life of assets written off at 25% per

year for all assets.

Direct costs include materials, supplies and all other costs incurred to produce the product.

A production month is 26 days and Currency used is US Dollars.

Production and Operation costs in US $

(a) Direct materials, supplies and costs

Cost Item Units @ Qty /day Pdn cost /day Pdn cost /mth Pdn cost /yr
Direct Costs
Copper & Zinc kgs 1 32 32 833 10,000
Mould release agent ltrs 6 0.16 1.0 25 300
Other reagents ltrs 1.25 1.00 1.3 33 390
Packaging material pkts 2 3.21 6.4 167 2,000
Subtotal 41 1,058 12,690
General Costs (Overheads)
Labour 1,200 14,400
Selling & distribution 200 2,400
Utilities (Water, power) 200 2,400
Administration 50 600
Rent 100 1,200
Miscellaneous expenses 100 1,200
Depreciation 95 1,145
Subtotal 1,945 23,345
Total Operating Costs 3002.9 36,035

 

Project product costs and Price structure in US $

Item Qty /day Qty /yr @ Pdn cost/yr UPx TR
Brass & Bronze casting 48.1 14,998 2.40 36,035 3 44,994

 

Profitability Analysis in US $

Profitability Item / day / month / year
Revenue 144 3,749 44,994
Less: Production &operating costs 115 3,003 36,035
Profit 29 747 8,959

 

Market

Brass and bronze items have very good market potential. The demand for use of brass and bronze art ware for decoration purposes in houses and offices has increased considerably. With increased industrialization in Uganda and an improvement in the quality of living, demand for the castings is bound to go up.

Source of Equipment and Raw materials

Can be locally fabricated in Uganda by Tonet Ltd kanyanya Gayaza Rd or imported and raw materials can easily be mobilized locally or even imported.

Government incentive

Startup costs 25% granted on actual cost over the first four years in four equal installments.

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