PLASTIC RECYCLING AND PELLETIZING PLANT BUSINESS PLAN

Table of Contents

1.0 Executive Summary
1.1 Business Overview
1.2 Mission and Vision Statements
1.3 Objectives
1.4 Business Ownership and Legal Status
1.5 Key Success Factors
1.6 Startup Capital Requirement
1.7 Summary of Financial Projections

2.0 Company Description
2.1 Company Background
2.2 Business Concept
2.3 Strategic Position and Competitive Advantage
2.4 Location and Facility Overview
2.5 Core Values and Operational Philosophy

3.0 Market Analysis and Competitive Landscape
3.1 Industry Overview
3.2 Market Size and Growth Potential
3.3 Target Market Segmentation
3.4 Feedstock Supply Mapping
3.5 Competitive Landscape and Key Players
3.6 SWOT Analysis
3.7 Pricing and Distribution Strategy
3.8 Marketing and Sales Strategy

4.0 Production Plan and Technology
4.1 Overview of Production Process
4.2 Process Flow Description
4.3 Equipment List and Estimated CAPEX
4.4 Plant Layout and Capacity Planning
4.5 Raw Material Requirements and Sources
4.6 Utilities, Energy, and Waste Management
4.7 Workforce and Shift Planning
4.8 Five-Year Financial Model Inputs
4.9 Sample Profit & Loss and Breakeven Analysis

5.0 Organizational and Management Structure
5.1 Organizational Hierarchy
5.2 Management Team and Key Personnel
5.3 Staffing Plan and Job Descriptions
5.4 Governance and Decision-Making Framework
5.5 Human Resource Policies and Training

6.0 Operational Plan
6.1 Daily Operations and Workflow
6.2 Supply Chain Management
6.3 Inventory Control and Quality Assurance
6.4 Customer Service and Relationship Management
6.5 Health, Safety, and Environmental (HSE) Compliance

7.0 Implementation Timeline
7.1 Pre-Operational Activities
7.2 Startup Implementation Plan (Gantt Summary)
7.3 Monitoring Milestones

8.0 Risk Analysis and Mitigation Strategy
8.1 Key Operational Risks
8.2 Financial and Market Risks
8.3 Environmental and Regulatory Risks
8.4 Risk Mitigation and Contingency Measures

9.0 Sustainability and Expansion Strategy
9.1 Environmental Sustainability Strategy
9.2 Economic and Social Sustainability
9.3 Long-Term Expansion Roadmap

10.0 Monitoring and Evaluation Plan
10.1 Monitoring Framework
10.2 Evaluation Process
10.3 Feedback and Continuous Improvement Mechanisms

11.0 Conclusion

12.0 Appendices
Appendix A: Summary Financial Tables (Years 1–5)
Appendix B: Key Performance Charts and Graphs
Appendix C: Risk and Mitigation Matrix
Appendix D: Equipment Specifications and Vendor Estimates
Appendix E: Regulatory and Compliance Documents

1.0 Executive Summary

1.1 Business overview

LagosPlast Recycles Limited is proposed as a medium-scale integrated plastic recycling and pelletizing plant to be located in Lagos State (Ikeja/Agbara corridor). The company will collect, sort, and convert post-consumer and post-industrial plastic waste (PET, HDPE, LDPE, PP) into clean, quality plastic recyclate pellets (regrind/pellets) meeting industrial specifications for use in manufacturing film, bottles, packaging, crates, and moulded components.

The plant will focus on:

• High-value PET and HDPE pellet production for bottle and packaging industries, and
• LDPE/LLDPE film regrind for packaging film manufacturers.

By combining efficient waste collection partnerships, modern washing and extrusion technology, solvent-less processes, and quality pelletizing, LagosPlast will reduce plastic leakage into the environment and supply cost-competitive raw material to local manufacturers facing import and price pressures.

1.2 Vision and mission

Vision: To be Nigeria’s largest and most trusted circular-economy plastics recycler, turning waste into quality feedstock and regional export volumes by 2030.

Mission: To collect plastic waste at scale, apply world-class recycling technology and quality control, and supply consistent, certified plastic pellets that reduce manufacturers’ reliance on virgin resin and imports — while creating local jobs and reducing environmental pollution.

1.3 Products and services

Primary products:

• PET Flake & PET Food-grade Recycled Pellet (rPET) — for bottle-to-bottle (where feasible) or bottle-to-fibre applications.
• HDPE Recycled Pellets (rHDPE) — for bottles, crates, and molded items.
• LDPE / LLDPE Regrind & Pellets — for film extrusion and packaging.
• PP Regrind — for moulding and fibre.
  Services:
• Waste collection and segregation (B2B and community programs).
• Toll recycling and contract pelletizing for brands.
• Quality testing & certification (batch certificates).
• Logistics and packaging (big-bags, 25kg sacks).

1.4 Market opportunity

Nigeria’s plastic processing industry consumes an estimated over 700,000 metric tons of plastics/year (all grades). Local resin production is limited and most high-quality pellets are imported. The domestic demand for recycled pellets is growing due to rising resin prices and import costs. Conservative market entry capturing 1%–3% of national demand for pellets (7,000–21,000 MT/year) is viable and scalable.

Key buyers: film manufacturers, bottle blowers, pipe manufacturers, packaging converters, and export traders in West Africa. Corporate buyers are increasingly required to meet sustainability targets; brands and FMCG firms are interest­ing in recycled content.

1.5 Competitive advantages

• Proximity to Lagos — tap major waste streams, ports, and manufacturers.
• Vertical integration: collection network + washing + pelletizing lowers feedstock cost and ensures traceability.
• Modern technology: friction washing, hot-wash, float-sink separation, and twin-screw extrusion with degassing for high-quality pellets.
• Quality control & certification: in-house lab for IV (intrinsic viscosity), MFI (melt flow index), and moisture; ability to meet buyers’ spec sheets.
• Sustainability credentials: ESG-ready operations, solvent-free processes, and capacity for corporate recycling programs.

1.6 Capital requirement & funding

Estimated total startup capital: ₦610 million – ₦820 million (range depends on land/lease option, new vs. refurbished equipment, and working capital buffer). Indicative split:

• CAPEX (equipment + civil works): ₦360M – ₦520M
• Working capital (6–9 months): ₦150M – ₦220M
• Pre-operational & compliance: ₦25M – ₦35M
• Contingency (8–10%): ₦30M – ₦45M

Funding plan example:

• Promoter equity: 35–45%
• Debt: 45–60% (BOI, commercial banks, green financing)
• Grants/Impact investors: 5–10% (optional; climate/ESG funds)

1.7 Financial snapshot (high level)

(Conservative first-year operations — 40% utilization)

• Year 1 revenue (conservative): ₦540M
• Year 3 revenue (target, 70% util): ₦1.35B
• EBITDA margin (year 3): ~18%–24% depending on feedstock mix and product mix.
• Payback: expected within 3–4 years under central case.

1.8 Social & environmental impact

• Divert thousands of tonnes of plastic from landfills and waterways annually.
• Create direct employment (approx. 120 full-time roles) and hundreds of indirect jobs in collection and logistics.
• Reduce CO₂e footprint by substituting virgin resin with post-consumer recyclate.

1.9 Key success factors

• Securing steady, quality feedstock at competitive cost.
• Reliable power strategy (hybrid solar + generator + grid).
• Strong quality assurance to meet industrial specs.
• Timely regulatory compliance (NESREA, Lagos State waste permits, SON where applicable).

2.0 Company Description

2.1 Registered name and location

Company: LagosPlast Recycles Limited
Proposed facility site: Agbara / Ikeja industrial estate (final site to be chosen based on logistics and feedstock access).
Legal form: Private Limited Liability Company (CAC).
Business start date objective: Q3 2026 pilot operations; full commercial Q1 2027.

2.2 Business activities

Primary activities: collection of post-consumer and post-industrial plastics, washing and flake production, extrusion and pelletizing, packaging and sale of recycled pellets (rPET, rHDPE, rLDPE, rPP) to local processors and regional exporters. Secondary: provision of toll-compounding / toll-pelletizing services and consultancy for corporate recycling programs.

2.3 Rationale and industry context

• Nigeria produces significant plastic waste with insufficient formal recycling capacity. Markets for recycled pellets are underserved and often supplied by imported lower-grade recyclate or virgin resin.
• The rapidly growing FMCG, bottled water, packaging, and film sectors (and pressure from international buyers for recycled content) increase demand for domestically-produced recyclate.
• Lagos state generates the highest municipal solid waste volumes in Nigeria — offering large feedstock potential if separated/collected efficiently.

2.4 Ownership and proposed management

Ownership (proposed):

• Founder / CEO (Promoter) — 50%
• Technical Partner (Recycling tech provider or international JV) — 20%
• Local investor(s) / Impact investor — 20%
• Employee stock option / reserve — 10%

Key management (initial):

• CEO / Managing Director — business lead and investor liaison.
• Technical Director / Plant Manager — polymer engineer with recycling experience.
• Operations Manager — logistics, collection partnerships.
• Quality Manager — lab and QA control.
• Finance Manager / CFO — accounting, cash management.
• Sales & Marketing Manager — off-take agreements and export.

2.5 Start-up summary (indicative)

(Above range reflects lease vs. land purchase, new vs refurbished machines, and initial working-capital policy.)

2.6 Operational objectives (first 24 months)

• Formalize collection network with 300+ collection points and 20+ collection aggregators in Lagos.
• Ramp to 10,000 MT/year input and produce 7,500 MT/year pellets (after process yield) by Year 3.
• Obtain third-party quality certification and ISO 14001 (environment).
• Achieve 80% plant uptime and >90% product specification compliance.

2.7 Strategic position

LagosPlast Recycles Limited positions itself as:

• A traceable, certified supplier of recycled pellets for Nigerian industry.
• Operator of a vertically integrated chain (collection-to-pellet) reducing feedstock cost volatility.
• An ESG partner for brands seeking recycled content and waste diversion goals.
• A regional supplier with export capability to West African markets within 3–5 years.