AffordableHousesHousefactorysummary241.Doc (1)

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Business Plan of Set Up An affordable House Materials Processing Factory

worldwide

________________________________________________Business SummaryHousing problem is popular in the world especially in developing and under developing countries. China Ministry of Construction has been developed a new housing system--Light Steel frame with sandwich wall house system-- which is fast in assembling and less costly than traditional housing We, INTERCONSULTING GROUP LTD., are working with the Zhongcai Huatai (Beijing) Investment Management Co.,Ltd. --- a partner of Genertec www.genertec.com.cn for technical support of this new system and broker of MIGA and China Imp and Exp Bank / World Bank to provide loan support to this house project and also supported by UNDP (United Nations Developing Programme)---hereby, introduce this new system by offering this business plan for real estate developers to know about this system and wish this plan will raise your interest and hopefully it leads you to a new way of success and make contribution for your beloved people.Lower cost and faster speed is this system's greatest features. 1/3 lower in cost than traditional clay brick or concrete house is because of its new wall system and quality but good price materials from China. We design to set up factory in buyers' countries, so as to make the cost still more lower. 10 workers assemble a 80 SQM house in one day time is not a magic because of its light steel frame s and pre-made wall and floor panel system.

What to import from ChinaThere are 6 - 8 production lines in one factory to process and produce house materials.We divide the importation into 2 -3 phases so that investment is less and venture is less.

Machines for 1st phase importation ( see quotation in bellow clause)90mm think wall panel extrusion machine

120mm think wall panel extrusion machineFloor panel extrusion machineU -shape steel shaping machineMachines for future importation Tile and floor production line 115,500 USD /setOutter looking wall panel machine 94,500 USD /set Door production lines 57,750 USD /set

Cost of 1st phase factory. 1. 120,750 USD for 3 lines ( see list bellow)2. 105,000 - 136,500 USD for A 2000 sqm workshop ,( see cost in bellow clause) Power and water supply system cost. Machines Shipping cost and import tax. Domestic transportation Chinese engineers training cost Management cost,etc. 设备引进Importation of Machines and devices

Three Lines and one processing machine

Name in Chinese Name in English90 地膜内墙主机 in house wall 90mm think extrusion machine120 地膜外墙主机out wall panel 120mm think extrusion machine楼板机 floor panel floor extrusion machine350型搅拌机 350 Diameter mixer500型搅拌机 500 Diameter mixer专用切割机 cutting saw侧翻运料车 side trolley破碎机 crusher切割锯 blue letter are main machines cutting saw运料车 Luck trolleys拉板车 panel trans troley起板器 panel lifter拉筋板总成 wire fixer托丝盘 wire holder端头板 end fixerU 型轻钢成型机 U -shape steel shaping machineTTL Quotation FOB 120,750 US$

Raw materials for wall and floor panel production

#350 Low standard cement, sand and water,Ash and particles from coal burning waste.

Workshop Cost ( Optional) 2000 sqm workshop cost (imported) (Shipping ,tax, assembling cost included)

125 -135 USD / sqm +5%

262,500 USD / light steel structure. Standard workshop

2000 sqm workshop cost Self -made in buyer's country 80 USD /

sqm +5%

168,000 USD / light steel structure. Economic workshop

Out put of 1st phase factory ( import three lines)The out put of three lines can supply 500 houses wall and floor panel( 80 SQM flat house . Other materials can be supplier locally or import from China.30 - 40 workers will be needed.( 3-4 Chinese engineers and workers)More of these lines can be imported if more houses want to be built.The products can not only supply buyer's project but also supplier other developers' project no matter it is traditional or our new housing system.

Cost of 10 sample house( 10 sample house of 80 sqm for example)With wall and floor panels made in the factory.Most of other materials from China and partly supplied locally.See cost list bellow: 10 Sample House Materials and Cost of 0thers

Cost Items and Materials List Cost

海运费Shipping cost 36,750 - 42,000 USD/ 40‘HQ x 10 containers

关税 Import tax %设备运输domestic transport / port to site

地基成本concrete base and drainage system specification: 200 W 250 H(mm)

人工 China Engineer / worker 1 worker 40-50 USD / per day / 10 persos?

当地工人 Local workers

管理费 Management

场地建设 workshop building high level grade材料购买local matrials

进口材料 imported materials Estimated 168,000 USD / 10 house (100M2)

水电设施water, electricity

税负 Tax wall panel, floor panel are produced in the factory 21,000 USD

Buyers decides what materials to buy Locally if cost lower

TTL other costs ( labour included ) 273,000 US$ ( estimated)Speed of assembling house:1.15 experienced can assemble a 100 SQM house in 2-3 days time.2.To finish internal basic decoration needs 7-10 days. So it takes 14-15 days to finish a house. ( Concrete base timeing is not included)3. For triditional house speed, local buyers know it.One 100 sqm house needs panel (sqm)

Square Meters

Wall panel 120 mm thick 200 Out wallWall panel 90 mm thick 150 Room wallFloor panel 100 Tile 120 Outer looking wall panel 200 Floor 100

3 workers use 40 Minutes to built a wall by using wall panel.12 workers use 450 Minutes to build a clay brick wall.

(traditional system) Smart Investment strategy We paln to set up one factory in each major city of buyer's country.Apart from 1st phase importation of production lines, we design a less investment method for buyers in neighbouring cities----(but have more local produced materials)In 2nd phase, each buyer imports a different line but they can exchange productsso they can invest less but have full production supplied locally.For example: ( for 2nd phase importation)A buyer imports TILE production line.B buyer imports Floor production lineC buyer imports Door making line.ETC. They can exchange products. In this way, they have more products that are self-made and will import LESS from China. This will greatly reduce production cost.

Process of introducing lines and import sample house materials

1. Buyer comes to Beijing to sign agreement with ZCHTIM . ( pay 10,000 USD +5 % for handling fee of witness and agreement registration in MinistryOf Commerce and Foreign Affairs)

2. Visit factory of house materials processing, Choose sample house models from factory sample house. Or buyer provide his own design and plan drawing.We give quotation for sample house materials.

3. Buyer pay 50% down payment for the lines and sample house order. Pay balance before shipping the order.

4. Supplier handles shipping.5. Buyer clear custom and transport order to work site of the factory.

Before this, buyer build workshop and ground ( 2000 SQM) ,Concrete base and drainage system of the house.

6. Instal machines, adjust machines, test sample making, initial production.7. Start assembling houses and finish internal decoration 8. Marketing for house sale and accept orders of buying house from

market,9. Prepare State level bank's letter of guarantee.Start asking for buyer's

own project loan from China bank or World Bank.10. Get ready to pay bank fee and MIGA insurance application surcharge.

(MIGA is like a 3rd party guarantee for refund loan). Without MIGA insurance, bank will not accept loan application. ZHCTIM will help to ask for loan .

Buyer's interest protection: 1.One buyer can have one state /province / large city exclusive selling territory. No another same factory will be set up within his territory. 2. Buyer should has providing market ability to import more lines so as to increase

production ability.

Concrete fance production lines for civil engineering projectand garden fence. ( for future importation)Information of Production lines of fence and garden wall are available for buyers who have interest in. See a pictures below:I