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Business plan for opening oxygen production plant

Business plan for opening oxygen production plant

When people talk about “making money from oxygen” we all mostly think about some illegal business. But it’s only in that case if we think metaphorically. In the literal sense of the phrase that is to make money by extracting the most important component from the air – oxygen, it is quite a respectable and profitable business.

Many think that oxygen production serves only to several specific industries such as metallurgy and chemistry industries but it is not entirely true.

Indeed, 8 of 10 liters of industrial production of oxygen is used in abovementioned industries yet 1/5th is used in other ones, such as:

  • medicine and recreation;
  • metals welding and cutting;
  • water treatment;
  • fishery in industrial scales (in artificial basins).

Oxygen is the most important element of life in general and industry in particular.

Bizplan.uzteam has developed this business plan according to PKM 110 ( 110) requirements andUNIDO recommendations.

The goal of our team was to forecast financial activity within 8 years taking into account project profitability and to help authorities and investors to understand if this business can provide necessary cash flow and income.

In order to decide if youd like to start your own business in the sphere, we offer you to have a look at cash flow report and contents of the business plan.

If youd like to get further information, please contact us viaphone numbersprovided on the website orby e-mail.

Contents of Business plan for opening oxygen production plant

1. Aim of the project

2. Customer

2.1. Company details, status, structure

2.2. Market position, current business affairs and reputation

2.3. Legal aspect of company establishment

2.4. Existing and forecasted potential

2.5. Economic and financial indicators

3. Project strategy

4. Market and marketing concept

4.1. Supply and demand

4.1.1. Market structure and features. Product features and market competitiveness

4.1.2. Existing demand, major factors and indicators showing grows

4.2. Marketing concept, sales forecast

4.2.1. Markets location and segmentation

4.2.2. Sales program

5. Material resources

5.1. Raw materials and components classification

5.1.1. Product quality and preparation methods requirements, correspondence of local raw materials with technological requirements.

5.2. Current section expenditures evaluation

6. Location of the project

6.1. Features of the chosen area

6.1.1. Evaluation of industrial and social infrastructure

7. Design and technology

7.1. Equipment

7.1.1. Justification of technology and equipment choice, technological process scheme, advantages and disadvantages, equipment safety and supplier warranty

8. Production establishment and overhead expenses

8.1. Project cost

8.2. Overhead expenses (overall plant, administrative)

9. Labour resources

9.1. Necessity in and availability of labour resources, staff requirements, necessity and organization of study cources

9.2. Evaluation of category costs

10. Financial valuation of project

10.1. Profit-and-loss report

10.2. Cash flow statement

10.3. Risks and ambiguity aspects

11. Appendix

Cash Flow

teo_oxygen_plant_1_eng.jpg

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