Market Overview:  Construction volume is increasing 20-25% annually, creating an increased demand for high quality façade bricks. The industrial capacity of façade bricks is estimated at 200 million bricks per year. In 2006, a construction boom is expected in southern Ukraine, where the plant is located. The product is used mainly by construction companies and private companies.

Project Overview:

• Using KSE-400 (Germany)
• Equipment supplier offers trainings for the buyer’s staff
• Can produce 30 million bricks per year including high quality hollow façade bricks, ordinary bricks, molded bricks, white and colored bricks

Competitive Advantages:

• Production of lime-sand bricks is considerably more energy efficient than the production of ceramic bricks. Moreover, the project envisions the reconstruction of one of the two pit-type 50-ton lime-burning kilns; using coal, automatic blending, loading, and burning will save on gas
• Plant produces its own lime; a sand-pit is located close to the plant
• No high quality lime-sand hollow bricks are produced in southern Ukraine
• Due to the considerable decrease in the weight of the bricks, delivery and transportation becomes much easier; bricks can be transported by auto, railway (via the plant’s rail track), or by water (a river port is 8 km away)
  Investment Project Progress:  Market research has been conducted

Key Financials:

• Total Investment - € 1.5 mln
• Investment Needed - € 1.5 mln
• Payoff period - 5 years