Due to the excellent physical properties of the foam, this material is in demand in various fields.

It is inexpensive, environmentally friendly and practically harmless to humans, which allows it

to be used both for the manufacture of disposable tableware, containers for storing various
products, and to use it as insulation material.

If you are interested in what kind of business it is better to do in Russia, then the production of
expanded polystyrene is one of the most profitable types of cash investments.

Polyfoam has a high thermal conductivity, excellent insulating properties - practically does not
let sound, cold air and moisture into the premises, therefore it is used in large volumes at
construction sites. In addition, with its help it is possible to reduce by an order of magnitude the
amount of expendable materials for plastering walls. The affordable price of equipment and raw
materials for the production of polystyrene foam allows any entrepreneur to buy them profitably
to open a highly profitable business.

About the benefits of foam

Polyfoam is a low-density foamed plastic mass. This is easily explained by the presence of gas in
the granules, which is formed during manufacture, so the material is lightweight, which makes it
easy to transport. In addition, due to the porous structure, the foam has excellent sound-
absorbing and heat-insulating qualities, for which it is so much appreciated in construction and in
other sectors of the national economy.

The internal and external decoration of the walls of buildings can significantly save on the costs
of equipping the premises with heating. Also, the foam has a number of characteristics, which
should include:

 durability;
 resistance to temperature differences;
 high fire resistance;
 excellent durability.

Due to its versatility, foam will always be a demanded material in construction and other fields,
the purchase of which is carried out in large volumes (for obvious reasons). Therefore, if you are
interested, you should seriously think about the production of expanded polystyrene. Let us
consider in detail the features of the manufacture of this material.

Polyfoam production - equipment, price

Let's look at the main features of the production process and equipment necessary for the
manufacture of foam, which is obtained from expandable polystyrene granules. At the initial
stage of production, the granules are foamed in a special pre-foaming chamber:
 1. Foaming is performed one-time or repeatedly, on which the density of the finished
material will subsequently depend. In the process, the granules are inflated, taking the
form of balls of small diameter. It can be increased with repeated repetition of this
process, while the density of the foam is low. It is the main value of the finished product
quality indicator. Density is called the actual weight of the material and is measured in kg
/ m³.
2. When the granules are foamed, they go through the curing step, and from the pre-foaming
agent they are fed to the holding hopper using a pneumatic installation. In the process of
aging in polystyrene granules, stabilization of internal pressure is carried out, as well as
their drying. Depending on the brand of equipment for the production of foam, this
process can take from 12 to 24 hours.

Tip:   it should be noted that the aging process after a single foaming is carried out once, if it is
necessary to obtain high density foam. To obtain low-density material, the balls must be aged as
many times as the foaming of the raw material.

1. Aged balls during the aging process are an amorphous mass, which is subject to further
molding. To do this, they are poured into a special tank, called a block form. The process
is carried out in a confined space in which hot steam is supplied to the granules under
pressure, resulting in the expansion of the balls in the volume and their strong connection.
The finished formed block must be maintained for 24 hours. After this, the foam is given
the necessary shape, which needs further drying. If the foam is cut without prior drying,
the cut will turn out with torn curved edges.
2. As for the equipment necessary for the production of polystyrene foam, there are two
ways: to find European manufacturers and invest a very large amount of money in a
purchase or to limit yourself to acquiring Chinese equipment. In either case, the
manufacturers will commit themselves to the preparation of customs documentation and
the delivery of equipment to the specified address. Perhaps, as a discount, you will be
asked to advertise the brand of equipment for a certain period of time in your production
(your partners and potential buyers, of course). This is a good option to save money on
the acquisition of production capacities, especially since in the future it can be produced
in your company.

Now we will analyze the equipment itself and consider the approximate prices:

 A production steam generator will cost about 70 thousand rubles in the purchase. You
can purchase such devices running on diesel fuel, as well as solid fuel units (peat,
firewood). The apparatus equipped with a utilizer (a special afterburner of fuel), which
will function when burning tyrsa, wood shavings and other waste, is twice as expensive.
As practice shows, the last version of the unit is most profitable, since the cost of buying
fuel is significantly saved, and its purchase pays off after a few months.
 The pre-foamer will cost you at a price of 180-210 thousand rubles. Please note that when
you purchase it from scratch during the first loading of granules, the output per hour will
be about 5-6 m³. All subsequent foaming of polystyrene raw materials takes place much
faster and reaches 10-12 m³ (in the presence of containers with liners).
 Equipment for secondary foaming - 30 thousand
  Block form - 90 thousand
 Drying hopper - 17-20 thousand
 The device forcing air into the chamber - 15 thousand
 Crusher with exhaust ventilation - 40 thousand
 Trimmer - 30 thousand
 Stationary table for cutting foam - 35 thousand

Starting a large production is a rather long and expensive process. You, as a novice entrepreneur,
can open a small foam production with a daily volume of 40-50 m³. It will be worthwhile to ask
the seller about the cost before purchasing capacities. Parallel placement of this line can
significantly increase revenue, in addition, these product groups will always be in demand in any
household.

Foam production at home

The small foam production that you can organize at home yourself (of course, if the area allows
you), will be complete if you purchase a pre-blower with a steam generator, a block mold, a
drying fan, a steam accumulator, a secondary foaming unit and a grinder.

The table for cutting the finished foam can be equipped with a transformer that allows you to
heat the strings. It is also equipped with a range finder or face saw. At the initial stages of the
production of polystyrene at home, finished products can be manually packed using polyethylene
and also shrink film, saving at the same time on the purchase of a machine.

Most start-up entrepreneurs are looking for ways to save on the cost of purchasing production
capacity, and this step is fully justified. One of them is the acquisition of used cars and plants of
foreign production.

Say, manufacturers sell 4-year-old German units at a price equal to cost (minus depreciation
costs). For example, a foaming agent of the famous Heitz brand can be purchased at a price of
about 60-70 thousand rubles. For this money, you will receive excellent quality equipment, wear-
resistant parts and components of machines, as well as a long service life.

Polyfoam raw materials - price

As we have already said, polystyrene foam is used to produce the finished foam. This raw
material has the form of expandable granules of various fractions. Its cost depends on the quality,
manufacturer, package weight. The price of polystyrene granules can vary from 120-150 rubles
per 25 kg package.

Save the article in 2 clicks:

If you want to get high-quality polystyrene foam and production with a minimum amount of
rejects, you need to pay great attention to the quality of the purchased raw materials. Today, the
main supplier of polystyrene granules is China. You can save on the purchase of raw materials
by purchasing pellets from Russian manufacturers, which in most cases leads to low quality of
finished products. Imported raw materials are worth the money spent on buying, because in the
end you will get exceptionally high quality material with a minimum amount of rejects at the
output (finished products).

In contact with

Foam production is profitable even in conditions of high competition, which is explained by its
demand in various business fields. According to analysts, by 2020 the demand for foam sheets
will increase by 15% compared to 2016.

[Hide]

Foam business presentation

The foam manufacturing business has the following advantages:

 lightweight creation technology;

 inexpensive raw materials;
 minimum amount of equipment;
 lack of need for licensing of activities;
 product safety for human health;
 non-waste production;
 polystyrene is not affected by temperature conditions;
 quick payback of the project.

Raw materials required for the production of foam

The main component of the foam is polystyrene. Semi-transparent foaming granules with a
diameter of 0.3 to 4 mm are used in production. It should be borne in mind that the weight of the
finished product depends on their size - the smaller the granules, the heavier the finished product
will be. Polystyrene for the creation of polystyrene should not be old, otherwise it will be
difficult to foam, which will provoke the occurrence of a large amount of marriage. In addition,
cold water is used in the manufacturing process, which is converted to steam in a special
installation.

The average cost of Russian polystyrene granules is 80,000 rubles per 1 ton, Chinese - 100,000
rubles. The latter is preferable due to the good opening of the balls during the foaming process.

It is important to pay attention to the labeling of raw materials:

 EPS (expandable polystyrene) - the international designation of well-foaming

polystyrene, the abbreviation FS is allowed;
 PSB (polystyrene foam suspension non-pressurized) or PSB-S (polystyrene foam
suspension self-extinguishing) - Russian production.
Relevance

The relevance of the business idea is based on the widespread use of expanded polystyrene in
such areas as:

 metallurgy (casting parts by LGM method);

 production of clothing (insulation);
 medicine (thermostabilizing container);
 architecture (layout creation);
 construction (heat and sound insulation);
 trade and logistics (packaging);
 radio engineering (dielectric);
 shipbuilding (vests, boats);
 production (filler for furniture, raw materials for creating disposable tableware).

Polyfoam can be made of any shape. This allows you to use it for different designs: insulation of
sewer pipes or the creation of 3D-models for decorating rooms. With its help, mobile and
stationary refrigeration units (refrigerator, isothermal van) are insulated.

The video reviews the production of expanded polystyrene with an assessment of the relevance
of a business idea. Taken from the channel "Peasant".

Description and market analysis

To characterize the market for the production and marketing of expanded polystyrene as follows:

1. 60% of manufactured products are used in construction for insulation of house facades.
2. According to independent studies, foam has been widely used in the process of large-
panel construction as an internal heat and noise insulation. There are 50 m2 per 1000
people.
3. The lightness of the products allows them to be used in the reconstruction of old
buildings, when the load on the walls is important.
4. With the advent of special machines, the creation of volumetric layouts for celebrations
and advertising campaigns has gained popularity over the past 5 years.
5. The largest producer of expanded polystyrene in Russia is the petrochemical holding
SIBUR, located in Perm.
6. Russian plants annually purchase 120 thousand tons of imported (the main suppliers are
China and Korea) and 12 thousand tons of domestic polystyrene.

The target audience

Foam production is focused on the following consumers:

 construction companies;
 advertising agencies;
 enterprises engaged in manufacturing and logistics;
  supermarkets and other stores;
 restaurants and food service outlets;
 metallurgical companies.

Competitive advantages

The following can be used as competitive advantages:

 free delivery for orders over 5,000 rubles;

 payment of foam by installments;
 cumulative discount (from 3 to 10%);
 giveaway among premium card holders (large customers);
 promotions dedicated to holidays;
 production of curly products.

Advertising campaign

To quickly gain a production niche, an advertising campaign should be organized, which

includes:

 video on television;
 information block at the leading radio station;
 banner in crowded places and near factories;
 stretch marks along central roads and places of mass stay of potential customers;
 distribution of brochures and business cards;
 website development;
 Internet advertising.

Step by step opening instruction

Starting a business is necessary in stages:

1. Market analysis. You can order monitoring of competitors and an assessment of

opportunities and risks from marketers.
2. Writing a business plan. The finished document can be downloaded on the Internet and
taken as a basis for developing your own project. The second option is to pay for the
services of specialists (from 18,000 rubles).
3. Company registration.
4. Opening a bank account.
5. Search for premises and staff.
6. Acquisition of equipment.
7. Selection of suppliers and ordering raw materials.

Documents
A businessman can register as:

To do this, you will need to provide the following package of documents:

 photocopy of passport;
 statement;
 receipt of tax payment in the amount of 800 rubles for individual entrepreneurs and 8,000
rubles for a legal entity;
 Charter (upon registration of LLC or OJSC);
 Protocol of the meeting of founders (for OJSC).

The process of issuing a certificate takes from 3 to 7 business days. At this time, the businessman
can deal with the choice of the bank and opening an account.

With the certificate (and a copy of the passport), you must contact the following authorities:

 tax service (the rate is from 6 to 15%);

 fire safety service;
 Pension Fund.

Determining the location of the enterprise

The main requirement for the location of the enterprise is the availability of a convenient
entrance for bulky transport. There must be a place where cars awaiting the loading of finished
foam boards (or other products) can park. Moreover, the location of the production line can be in
any part of the city. To save on rent, it’s best to do it below his line.

Selection of premises

Choose a room according to the following criteria:

 the area of \u200b\u200bthe production workshop is from 70 m2;

 warehouse - from 50 m2;
 ceiling height - 4 m;
 voltage in electric networks - 380 V;
 the presence of ventilation systems and cold water supply.

Production technology and selection of necessary equipment

The full foam production cycle looks like this:

1. Polystyrene is placed in a special machine, into which water is poured. Gradually

warming up, it acts on raw materials, which leads to its expansion. Depending on the
production technology, this step can be repeated several times.
2. The resulting mass is dried with a stream of hot air for 2 minutes.
3. Then it is packed in bags for 15-20 hours for complete drying.
 4. Aged semi-finished product is subjected to steam processing in special forms having the
appearance of the finished product.
5. The drying and aging process is repeated (7-14 days).
6. Dry polystyrene is cut and the edges are treated.
7. Sheets are packed in polyethylene.
8. Scraps and scraps are sent to the machine, inside of which crushing into small granules
takes place. After that, the process starts over.

Manufacturing process

To produce foam, you will need to purchase:

Cycle pre-foamer Thermal cutting table

Staff recruitment

For the successful functioning of the enterprise will need to staff it with the following staff:

Number Salary
Requirements for a
Position of Job responsibilities in
candidate
persons rubles
 knowledge of  organization and
equipment and control of the
production process; production process;
Technologist 2 25 000
 experience from 2  equipment repair and
years. maintenance.

 polystyrene
 composure;
production;
 a responsibility;
Working 8  keep the equipment 17 000
 teamwork skills.
clean.

 a responsibility;
Cleaning
2  hard work.
lady
 work experience of 4
years;
Accountant 1  special education;
 financial literacy.
 cleaning the premises.
10 000
 preparation and
submission of reports
to the tax service;
 issuance of
30 000
accompanying primary
documentation;
 inventory taking.

Sales 2  work experience in a  procurement control; 20 000

manager similar position from  supplier search;
3 years;
  sociability;
 financial literacy;
 correct speech;  tracking orders.
 knowledge of
English is welcome.

Total 15 276 000

Financial plan
The following data are used for calculations:

 rental of premises on the outskirts of the city;

 purchase of new equipment;
 purchase of Chinese raw materials;
 round-the-clock work of the production workshop;
 advertising on banners and radio stations;
 development of your own website.

Starting investments

To start a business you will need to invest in the following way:

Regular costs

Monthly cost items look like this:

Income

 the sale of foam per month - 800 m3;

 the cost of 1 m3 - 1000 rubles.

Thus, monthly income will amount to 800,000 rubles, and net profit - 402,000 rubles.

Calendar plan
It will take 8-11 months to implement a business idea for organizing the production of
polystyrene foam:

1 2 3 4 5 6 7 8 9 10
Stage
month months months months months months months months months months
Market analysis + +
Preparation of a
+
business plan
Registration of
a package of +
documents
Website
+ +
development
Search and
rental of + +
premises
Marketing +
Equipment and
+
installation
Staff
+
recruitment
Raw material
+ +
purchase
Opening +

Risks and payback

The business will fully pay off 3 months after the start of production.

An entrepreneur may face the following risks:

Possible problem Decision

 careful study of suppliers and the goods offered;
Poor quality raw materials  timely extension of concluded contracts.

 purchase of high-quality machines with a valid

warranty;
Equipment breakdown  scheduled maintenance;
 respect and cleanliness.

 careful selection of candidates;

 motivation system - bonuses and fines;
Workers dishonesty
 organization of corporate events.

 quality control of products;

The emergence of a strong  conducting an advertising campaign;
competitor  monitoring of new products in the field of production.

 monitoring the economic and political situation in the

country;
Crisis in the country
 order of analytical forecasts.
Video
The video describes the technology for the production of polystyrene and an overview of the
necessary equipment. Taken from the official channel of the manufacturer "Vikrus Kirov".

Polyfoam in its current form was first created in 1951. The first production lines were
inaccessible to private entrepreneurs, as they were bulky and expensive. However, since then,
many affordable mini-factory projects have appeared on the market, turning the production of
expanded polystyrene into a profitable area of \u200b\u200bsmall business.

A well-developed business plan for the production of foam should take into account the activity
of competitors in a particular region: it is believed that the company will be profitable if no one
is engaged in this type of activity within a radius of fifty kilometers. Finding a free niche is not
easy, however, success in the search will allow you to fully use the advantages of this area:

 Simplicity of foam manufacturing technology;

 Availability of finished projects and production complexes;
 Low prices for raw materials;
 Payback within two to three months;
 High demand for products.

Where is polystyrene used?

  Due to its low weight and high thermal insulation properties, the foam is used in many
industries, and in everyday life its use is due to its durability, resistance to environmental
influences and the absence of toxic compounds in the composition of the material.

The specific gravity and strength characteristics make it possible to distinguish several major
brands of foams: PSB-S15 (the lightest), PSB-S25, PSB-S35 and PSB-S50 (the heaviest).
Similar materials are used in industries such as:

1. Building. Polyfoam has the lowest thermal conductivity among common building
materials, which allows it to be used as an effective insulation material in the
construction of buildings in cold regions. Using this material, pipelines are insulated and
heat losses are reduced in cold rooms and storage rooms. In addition, the so-called
sandwich panels are produced on the basis of foam plastic - modern composite materials
with high rates of heat transfer resistance;
2. Healthcare Polyfoam is used as an insulator for protection against shock and overheating
of the contents of special containers intended for the transport of drugs and donor organs;
3. Shipbuilding. The hulls of boats and yachts are lined with foam inside to achieve positive
buoyancy. Fishing gear floats and life-saving appliances — circles, vests and belts — are
made from the same material;
4. Engineering. The manufacture of foam products allows you to quickly develop and
prepare for production complex models for investment casting;
 5. Packaging. Any fragile equipment can be protected from mechanical stress through the
use of packaging made of foam or granules of expanded polystyrene;
6. Architecture. Foam elements are used as decor for the exterior and interior decoration of
buildings. Most often imitate gypsum stucco, stone or other natural materials.

Production Features
Available options for technological lines allow us not only to create a full-fledged enterprise
capable of producing 50–3000 m² of products per day, but also to engage in the production of
polystyrene at home.

Of course, in this case we are not talking about our own apartment, since even a minimal set of
equipment requires an area of \u200b\u200b50 m² and a ceiling height of at least three meters,
and the production process is accompanied by the release of some harmful substances into the
atmosphere. However, using your own garage or outbuildings, it’s quite possible to open a small
workshop and start manufacturing products for your own needs or for sale to private customers.

Depending on the scale of production of polystyrene foam at home, the price of equipment can
be 450-600 thousand rubles. Such a mini-plant allows you to receive 10-30 m² of products of
acceptable quality per day. However, the high profitability and technological simplicity of this
business nevertheless makes it advisable to consider the possibility of creating a fully equipped
workshop, since capital investments with adequate load will pay off literally within a few
months.

Raw materials
  In the most common production technology, polystyrene is produced using the following
materials and resources:

 Water (converted to hot steam in steam boilers);

 Electricity for powering the process line electric drives;
 Fuel for the steam generator - coal, firewood, gas, fuel oil;
 Raw materials for the production of polystyrene - expandable polystyrene granules.

Foaming polystyrene PSV is a solid translucent polymer balls with a diameter of 0.3 to 4 mm.
Fractions are selected depending on the desired density of the foam - the smaller the initial
granule size, the harder the finished product will be.

In the raw materials market, offers of both domestic and foreign manufacturers of PSV are
available. The cost of a ton of Russian granules is 70–85 thousand rubles, Chinese - 95–105
thousand rubles. The difference in price is justified by the fact that imported granules are 10%
better open when foaming.

Production technology
The foam manufacturing technology is based on the ability of PSV granules to repeatedly
increase their volume during heat treatment. The full production cycle includes the following
steps:

 Foaming. PSV is loaded into the container of the machine for the production of
polystyrene foam and heated using water vapor supplied under pressure with a
temperature of 105–115 ° С. Within 4-5 minutes, the granules increase their volume by
30-50 times. The process can be repeated to obtain larger balls used in the manufacture of
lightweight foams with a specific density of less than 12 kg / m²;
 Drying. The mass of expanded polystyrene moist after steam treatment is continuously
mixed and dried with a stream of hot air for several minutes;
 Exposure The semi-finished product is kept for 15–20 hours in bags up to 20 m². During
this time, the final drying, stabilization of the size of the granules and equalization of the
 internal pressure in them occur. The holding step should be repeated after each repeated
foaming;
 Formation. The foam mass is poured into special molds for the production of foam and
again subjected to steam treatment under pressure. When expanding, the balls interlock
with each other and form a ready-made block of a given size - for example, 1.2x2x0.6 m;
 Repeated exposure. Blocks are sent to a warehouse, where they are kept for 1-2 weeks.
During this time, the foam is dried and becomes suitable for further processing;
 Cutting into plates. On a cutting table with a heated string, the block is divided into sheets
with a thickness of 20, 30, 40, 50 or 100 mm, the edges are processed and packed in
polyethylene. Theoretically, the equipment allows you to get plates of any thickness and
shape specified by the customer;
 Recycling. The cuttings obtained at the previous stage, as well as defective sheets with
defects, are sent to a mechanical crusher, where they are again crushed into granules. 12-
15% of such raw materials can be reused in the process of forming blocks. Thus, the in-
house production of foam is completely waste-free.

Workshop arrangement
To place a foam production line that allows producing up to 50 m² of products per shift, a room
is required that meets the following requirements:

 The area of \u200b\u200bthe main workshop is not less than 150–200 m²;
 Ceiling height - not less than 4 m;
 Air temperature - not lower than 15 ° С;
 Three-phase power line voltage of 380 V;
 Connection to a water supply system or other permanent sources of water;
 Ventilation system.

In addition to the workshop, the production of foam suggests a separate warehouse of 50–75 m²
for holding blocks and storing finished products. As such, you can use the site, protected by a
canopy from sunlight and precipitation.

With the maintenance of equipment for the manufacture of foam can handle two workers. In
addition, some models of steam boilers that work on wood or coal require the constant presence
of a stoker. Support staff consists of a part-time accountant and a sales manager.

Equipment
When buying machines for the production of polystyrene foam, one should take into account not
only their cost, but also the desired performance, determined by the potential capacity of the
market. In the absence of competition, it is advisable to consider installing a large-capacity line,
while in a small village where the number of consumers is limited, large-scale investments will
be more likely to be unjustified.

A typical set of equipment for the production of polystyrene foam, which allows you to get up to
50 m³ of products per day, includes:

Equipment list

  Name   Price, rubles

Solid fuel steam generator (firewood, coal, pellets). Alternatively, 190 000
boilers that are structurally adapted to operate on gas, liquid fuel
or electricity can be used.
Pre-foam blower of cyclic or continuous operation with a
280 000
capacity of up to 10 m³ per hour.
Secondary foaming device. 45 000
Receiving hopper with a capacity of 20 m³. 20 000
Hopper fan with air heating function. 16 000
Block form for thermal formation of foam blocks with a working
280 000
volume of 1.44 m³.
1.65 m³ steam accumulator. 150 000
Mechanical crusher of secondary raw materials with pneumatic
80 000
conveying
Fans for pellet holding hoppers. 2x11 000
Thermal cutting table with transformers and power control. 150 000
20 m³ insert bags for the hopper. 4x5,000
Total: 1 253 000

Given the additional costs of tools, shelving and awnings used in the production of foam, the
price of equipment will be at least 1.3-1.4 million rubles.

Financial investments
In addition to the initial investment in the purchase of equipment, the production of foam as a
business is also accompanied by current expenses. As a basis, we use the same workshop with a
capacity of 50 m³ per day:

The number of working days in a month is 22.

The total area of \u200b\u200bthe enterprise’s workshops is 250 m². Renting such a heated room
will cost 50 thousand rubles a month.

Attendants - two workers and a fireman. Monthly expenses for the payment of their labor will
amount to 60 thousand rubles.

Support staff - accountant (10 thousand rubles per month) and sales manager (25 thousand rubles
per month).

The business idea of \u200b\u200bthe production of polystyrene is based on the use of PSV
pellets of domestic production worth 73 thousand rubles per ton. From one kilogram of
polystyrene, one kilogram of finished products can be obtained, and the specific gravity of a
cubic meter of the most common PSB-S15 polystyrene is about 12-15 kilograms. Accordingly,
the cost of raw materials for the production of 1 m³ will not exceed 1095 rubles. To calculate the
cost should take into account other costs:

Monthly expenses
So, the cost of a cubic meter PSB-S15 will be 1308 rubles. This value can be reduced if you buy
equipment for the production of polystyrene, which does not run on solid fuel, but on main gas:
taking into account the price for enterprises, it is 1.79 times more economical than firewood.
Therefore, the corresponding costs will be reduced to 22,300 rubles per month, which will
further reduce the cost of a cubic meter by 20 rubles and refuse the services of a stoker.

Business profitability
When fully loaded and successfully sold, the specified foam manufacturing enterprise can
produce up to 1100 m³ of products per month. The average cost of a cubic meter of material
depends on the density and is:

 1850 rubles for PSB-S15;

 2500 rubles for PSB-S25;
 4050 rubles for PSB-S35;
 5400 rubles for PSB-S50.

We calculate the main economic indicators and the profitability of the production of foam brand
PSB-S15:

Economic indicators

Thanks to the manufacture of heavier grades of foams, the payback period will be reduced, since
at approximately the same cost of PSV pellets, finished products can be sold much more
expensive. Therefore, considering, it is necessary to keep in mind the high profitability of such
an enterprise.

Sales organization
Before you expand the production of polystyrene at home or start organizing your own
enterprise, it is advisable to study the sales market: 80–85% of consumers are construction
companies and private entrepreneurs engaged in facade insulation. First of all, it is necessary to
establish contacts with such companies and offer them wholesale deliveries. You can sell
polystyrene directly from the warehouse, since wholesalers are interested in volumes of several
tens or hundreds of cubic meters, and the absence of a margin on the distribution network
provides the manufacturer with an additional advantage.

The second sales channel involves collaboration with retail stores and supermarkets. A large
outlet can sell 30–40 m³ of products per month without any investment in advertising by the
supplier, which makes this method no less promising. However, retail sale of polystyrene is
accompanied by some additional costs.

Self-delivery of products to retail outlets leads to additional costs for renting or buying your own
truck, minibus.
Due to the fragility of the material, each cycle of loading, transportation and unloading leads to
breakage of 3-5% of sheets. To solve this problem, crushers for recycling recycled materials are
included in the foam production cycle.

As for the production itself, in this video the production of polystyrene as a technological process
is clearly demonstrated:

Video: Styrofoam Production Technology

Conclusion
The foam manufacturing business is notable for some seasonality, since in construction the
maximum activity of consumers is observed precisely in the warm season. Therefore, it is better
to start creating your own enterprise in advance, in order to accumulate sufficient inventories by
the beginning of the season.

The production of building materials has always brought a good income. This also applies to
polystyrene. Today this material is in great demand in the domestic market. If you decide to open
your own business and make a good fortune, pay attention to the business plan for the production
of foam. To realize this idea, you do not need a large start-up capital, as for example in the case
of, so any novice entrepreneur can do this.

registration
It’s impossible to open a workshop in a large room and install bulky equipment in it. The
production of polystyrene at home should in any case be legalized. This will allow you to sell
goods by bank transfer in large quantities. And this is a significant advantage.

At the start, you can register an IP and pay a single tax. To open a full-fledged company and pay
taxes in full at the stage of formation is too expensive. This can lead your business to
bankruptcy. When the company begins to expand, you can open an LLC and work on a
simplified tax system.

Location
To choose the right geographical location of the enterprise, it is necessary to conduct a thorough
market research. The most favorable for doing business are those regions in which the offers of
this product do not fully cover the demand. In such a place, you can safely launch your
commercial project.

Do not forget to clearly work out and include in the business plan the ways of marketing the
finished material. This is a very important point on which the profitability of your enterprise
depends in many respects. In addition, seasonality of the business should be taken into account.
At a time when demand for products is falling, it is possible to switch to the production of foam
products. This will allow you to ensure a stable year-round income.
The main consumer of polystyrene is. Each of them is already collaborating with other
manufacturers. You need to draw their attention to your product with low prices, but at the same
time good quality. In order to ensure stable sales of products, it is necessary to find regular
wholesale customers, for example, and conclude agreements with them.

Room
The building in which the equipment for the production of polystyrene will be located has
special requirements. The mini-factory should consist of three rooms, which are isolated from
each other by special fireproof shields:

 Production hall - 70 sq. M. meters;

 Warehouse - 50 square meters. meters;
 Warehouse for raw materials - 10 square meters. meters.

Water and electricity should be supplied to the workshop. The ceiling height in this room should
not be less than 5 meters.

As for the location of the workshop, it is best to find a room outside the city. Renting there will
be much cheaper, which will significantly affect the payback time of a business.
Schematic: Styrofoam Production Equipment

Necessary equipment
  Starting a small business is much easier than a large business. If you are limited in finances,
you can open a mini foam production with a production capacity of 50 square meters. meters of
material per shift. It will cost you much cheaper.

A complete foam plastic production line consists of the following units:

 Pre-foaming agent - 250 thousand rubles;

 Machine for secondary foaming - 40 thousand rubles;
 Steam generator - 80 thousand rubles;
  Block form - 150 thousand rubles;
 Fan for drying - 20 thousand rubles;
 Steam battery - 85 thousand rubles;
 Crusher - 55 thousand rubles.

This equipment does not require special maintenance. You can install it on your own. But, as in
any other business, there are some nuances that can further negatively affect the cost of the
product. Therefore, it is better to entrust the installation of equipment to specialists.

One block mold for the production of polystyrene will not be able to provide high performance.
It is advisable to purchase two units at once. If you plan to produce products in large volumes,
buy a cutting table equipped with an electric cutter.

Employee staff
Do not think that a modern polystyrene machine does not need maintenance personnel. To
ensure the continuous operation of the enterprise, it is necessary to form a staff.

To work in one shift, you will need 1 technologist and 4 workers. In addition, the staff should be
a person who is engaged in cleaning the premises. To solve issues related to taxation and
accounting, you need to hire a competent specialist.

Expenses
One of the most important steps in drawing up a business plan for mini-foam production is the
calculation of costs:

 Equipment - 900 thousand rubles;

 Salary to employees - 100 thousand rubles;
 Additional costs (rental of premises, payment of electricity, etc.).

If your company will work in two shifts 5 days a week, the initial costs will pay off in literally 3-
5 months. This applies only to the purchase of equipment and raw materials. The cost of renting
the premises and the salary of employees will be monthly.

Calculation of the cost of production

One cubic meter of material costs about 1 thousand rubles. The total cost of its manufacture is
600 rubles. Accordingly, if a foam plant produces 50 cubic meters of products per day, you will
make a profit of about 450 thousand rubles a month.

The profitability of such a business reaches 20%. These are excellent indicators that are difficult
to achieve in any other direction of entrepreneurial activity. If you are looking for a profitable
business idea, the production of polystyrene is an ideal option in order to open your own
profitable business.
Raw materials and technology
Polystyrene foam is made from special expandable polystyrene foam. Its cost largely depends on
the manufacturer and the fraction. The price of raw materials for the production of foam varies
within $ 2 per 25 kg.

When purchasing expanded polystyrene, pay special attention to its quality. Domestic raw
materials can be bought at a low price, but this can negatively affect the quality of the finished
product. Imported polystyrene foam allows you to get high-quality material with a small amount
of marriage. Recently, the main raw materials purchased in China.

Pay attention to the quality of polystyrene, as well as the duration of its storage. The older the
raw material, the longer the foaming process will take and the more difficult it will be to achieve
the density of the foam bead.

What is needed for the production of expanded polystyrene?

 Raw materials (expanded polystyrene foam);

 Steam (temperature about 110 degrees);
 Electricity (voltage 980 W);
 Cold water;
 Equipment.

Production technology

When the starting material enters the pre-foaming agent, the granules are inflated and turn into
balls. If necessary, this process is repeated. After foaming, the granules increase in volume. This
technology for the production of foam is used for the manufacture of material of low strength.

Related videos   Related videos

In the next step, the foamed granules are fed into the hopper. There they stand 24 hours. During
this time, the semi-finished product dries and the pressure inside the granules normalizes. After
that, it is poured into a block form and formed by acting on the granules with steam. If you are
interested in the production of polystyrene foam, a video of the process will help to understand it
in more detail.

More than 30 years ago, few could have imagined that foamed plastic mass from a conventional
heat insulator would turn into one of the most popular materials for various fields: construction,
shipbuilding and engineering, electrical appliances and others.

Specialized equipment for the production of foam is required, the minimum set of which
includes:

 Steam generators and batteries.

 Pre-foamers.
 Reception hopper.
 Block forms.
 Crushers.
 Cutting machines
 Coolers and compensators.
The manufacture and sale of polystyrene foam begins with a search for suppliers who can at the
same time prompt sellers of raw materials and auxiliary products. A huge amount of equipment
is supplied to the Russian market from China. Manufacturers ensure the delivery of goods to
their destination, the preparation of documents for customs control and payments. For
commissioning, a specialist visit is paid separately. European kits come out several times more
expensive, but the quality, warranty conditions, of course, are much better.

What do you need for self-made foam?

So, you have in your hands a complete business plan, there is an idea of \u200b\u200bthe amount
of work required investments. The next task is to buy equipment for the production of foam
products. Installation required:

1. Pre-foamer. At this stage, a preliminary whipping of polystyrene granules is carried out under
the influence of steam to a predetermined density level: 5-50 kg / cu. m. They differ in
parameters:

 material of manufacture (carbon or stainless steel);

 performance;
 volume of the chamber and receiver for granules;
 operating principle (continuous or cyclic);
 the presence of a built-in steam generator, hopper, feed dispenser.

2. Intermediate container with an insert bag for secondary foaming. This block is necessary to
obtain a foam with a density of up to 6-8 kg / cu. m. The dimensions of the frame are determined
by the technologist.

3. Receiving hopper with a built-in or plug-in fan with the option of heating the air. It is aged and
dried. They differ in useful volume and power.

4. A block form in which, under the influence of steam, polystyrene beads are sintered into a
monolith. Cooling can be vacuum or natural, control - through the remote control.

5. To speed up the process, a vacuum pump and compressor are required. Delivered separately
depending on the power and the specified density of the final product.

6. A table for curly cutting of foam into sheets of the desired size and thickness. They differ in
configuration; as additional options, range finders, transformers for heating strings, face saws for
tongue-and-groove and others are often present. For profile molded products (skirting, platband,
columns, slate insulation), a complex 3D machine is used instead of a table. Management is
carried out through a special computer program.

7. A packaging machine wrapping finished products with shrink film or polyethylene.

8. Crusher with exhaust fan, grinding waste from cutting foam. Subsequently, they are again put
into production.
9. Steam generators and accumulators providing continuous operation of pre-foamers.

This may also include scales, condensate drains, transformers, pneumatic conveying pipes and
the like.

Approximate price of equipment

Table 1. The cost of a kit with a capacity of 40 cubic meters. m. per standard shift (8 hours)

View Quantity price, rub. Total RUB

Steam generator 1 85 000 85 000
Pre-foamer with
2 80 000 160 000
dispenser
Receiving hopper 1 15 000 15 000
Heated receiver fan 1 14 000 14 000
Bag for aging hopper 2 8 000 16 000
Venturi pipes 2 3 000 6 000
Fans 2 11 000 22 000
Block shape electric drive 1 125 000 125 000
Vacuum pump 1 50 000 50 000
Intermediate Hopper Bag 1 5 000 5 000
Styrofoam Cutting
1 20 000 20 000
Machine
Pneumatic crusher 1 45 000 45 000
Steam accumulator 1 90 000 90 000
Pneumatic conveying
1 set 24 000 24 000
pipes for 2 hoppers
TOTAL 677 000

The minimum configuration will cost half the price. The warranty on the Russian and Chinese
products is 1 year.
To reduce costs, many novice businessmen prefer to buy used equipment
from sellers of used units. For example, in Germany the state provides
loans at a rate of 2-5% per annum plus tax incentives to modernize the
production base. Accordingly, it is profitable for them to sell 4-year-old
units at cost less depreciation.

So, used cars Kurtz, Heitz, Hirsch cost about 70,000 rubles, but at the
same time the buyer receives European quality, metal parts with Teflon
coating and a sufficiently large resource - at least 5 years. Whereas
applying a protective coating to the Russian block form increases its price by 25,000 rubles.

Styrofoam production steps

The manufacture of foam includes the following phases:

 Foaming polystyrene granules (preliminary, double, triple);

 Drying;
 Maturation for up to 24 hours;
 Forming in a single block;
 Drying up to 30 days;
 Cutting into plates of specified sizes;
 Recycling waste.

The whole process takes no more than a few days. Despite the fact that the product has a steady
demand, investments pay off in a year and a half. For this reason, many are interested in the
question of whether it is possible to organize the production of foam at home. This idea is quite
feasible, but a garage or an outbuilding on a summer cottage does not meet safety standards.

Firstly, the height of the ceilings in the room should be at least 4-5 m. Secondly, the availability
of water supply, sewage, a source of electricity of 380 W, a good ventilation or exhaust system is
mandatory. And thirdly, the warehouse for storage of finished products must be protected from
fire, moisture and direct sunlight, all this is detrimental to quality.

In addition to the purchase, installation and commissioning of equipment, the search and training
of workers, and the rental of premises, it will be necessary to obtain permits from various
authorities (sanitary and epidemiological surveillance, fire protection and others). After all, the
manufacture of polystyrene foam at home is a process associated with the release of toxic fumes,
fire hazard, toxic waste. It is better to approach the matter responsibly and acquire a turnkey
ready-made business for the production of foam in the industrial zone. At the same time, an
established supply and sales network, trained personnel and relevant documentation are
transferred to the buyer.
Business Plan "foam production"
Business Plan "foam production"

Table of Contents article:

 Selection of premises for the production of

 Market research
 Equipment for manufacturing of foam plastic
 Staff for the production of
 Financial part
 Conclusion






A+ but-

Business Plan "foam production" – a

profitable business idea.

such material, as a foam, It has a wide range of applications due to the inherent characteristics
(environmental safety, properties of heat- and sound), is an advantage over other materials. The
foam can be used to:

1. insulation purpose - building insulation and roof, repair of industrial premises, construction of
hangars, etc..
 2. Exterior insulation of buildings. In this case, the advantage of the foam is, that after the foam
insulation of the building can be plastered.
3. Insulation damage. It can be used for insulation of pipes, Storage of vegetables and fruit,
transport equipment and the internal insulating transport wagons.

Due to the extensive scope of the foam business, associated with its production, able to bring
substantial revenue. This requires the initial preparation of the relevant business plan (with the
calculation of the advisability of the project launch) and compliance with certain features of
doing business in this area.

Selection of premises for the production of

The business plan should first be described selection of premises, in which the planned
placement of foam production. Such premises are special requirements.

First of all they are in the, that the building of a mini-plant for the production of foam needs to
have a minimum of 3 room, isolated from each other by fireproof shields. Data refers premises:

1. Manufacturing facility. Its area shall not be less than 70 quarter. m, and the ceiling height - no
less 5 m. The room temperature should not fall below +10 degrees.
2. Finished products warehouse. The minimum area of its placement – 50 quarter. metrov.Sklad
can be placed outside the building and, but for this he must be specially equipped shelters and
protective plates from the adverse impact of natural.
3. Warehouse for raw material of approximately 10 quarter. metrov.Temperatura in the room
should not exceed +20 degrees.

Indoor production should be continuous supply of electricity and water supply system to function
properly.

Market research
In addition to the specifications of an industrial building should consider the geographic location
of the future mini-plant. For this pre-market structure should be examined in this area, consider
those regions, where there is demand for products offering outstanding foam. These regions are
the most favorable for the launch of the new plan there is a commercial project.

Besides, in the business plan for the opening of the industrial production of foam, It must be
clearly established and designated future product sales path. Also, the opening production of the
foam project in the calculation of basic economic indicators of some business seasonality should
be taken into account.
In the production must be present finished products warehouse

Equipment for manufacturing of foam plastic

Professional workshop for the production line of foam.

Everybody knows, it is easier to start a small business, than big business due to smaller start-
finance investments, and other factors. For this reason, it is recommended to start with the
opening on the foam producing mini-mill. To do this, the business plan should be counted
acquisition of most of the necessary equipment, required at startup of the production process. For
example, business production capacity 50 quarter. meters in 1 Time required following list of
equipment:

 Pre-blowing agent, automatic feeding and dosage of raw materials in it;

 Receiving hopper to the pipe;
 Block-form;
 Tables for cutting foamed plastic;

 waste crusher;
 Steam generators;
 Remote Control;
 Pnevmotrasport;
 Additional details for the installation of equipment.
Download a business plan for the production of foam for 350 rub., our partners, with a
guarantee of quality.

Staff for the production of

Advanced applications of foam – packaging

manufacturing

Should not assume, that through the acquisition of modern high-quality equipment for future
production staff do not need. To ensure itself of the production process and maintenance of the
equipment must be hired workers and technologist.

It is best to recruit the staff working on the basis of work in production 2 change. For work 1
shifts four workers should be involved and 1 technologist. Respectively, all should hire 8
workers and 1 technologist.

Besides, an employee must be employed for cleaning, and brought accountant (albeit coming) to
resolve accounting issues, accounting and taxation.

The business plan "foam production" in addition to the list of workers should also be given its
estimated wages.

Financial part
The result of preparation for foam production of a business plan (and its most valuable
information from the point of view of investors) a count Finance.

In these figures include:

1. Purchase of equipment - about 850 000 – 900 000 rubles.

2. Monthly wages of workers and technologist is not less than 96 000 – 100 000 rubles.
 3. Other expenses, related to the cost of utilities, contingencies, equipment repairs and other.

If you consider the fact, that foam production will be 5 days a week in two shifts, and will also
be established sustainable ways of marketing the finished products wholesale, the payback
period of such business will not exceed 3-5 months.

Total, the starting capital for foam production will be approximately 960 000 – 1000 000, but it
refers to the purchase of equipment and the production of raw materials. If the additionally
required space for rent or purchase, the amount of initial capital will increase significantly.

Additional costs would entail an advertising company and outdoor advertising funds.

Download a business plan for the production of foam for 350 rub., our partners, with a
guarantee of quality. Open access, on the Internet, it is not.
The contents of a business plan:
1. Confidentiality
2. Resume
3. Stages of the project
4. Feature object
5. marketing plan
6. Technical and economic data equipment
7. Financial plan
8. Risk assessment
9. Feasibility study of investments
10. findings

On offer visitors video page presents some advice on doing business, associated with the
production of the foam, and the technology itself:

Conclusion
foam production at the moment is a very popular area of the business in some regions of the
country. For this reason, if you choose the right region of the opening of business, as well as
comply with all the nuances of doing business in this area, then the profit will not take long.

For competent distribution of opportunities and resources, must be drawn up production of a

business plan foam.