Sunday, October 31, 2010

how to deal with Bitumen business - packing sector

Packing industry has a big stake in bitumen business in Iran (also worldwide). the most common ways are bulk bitumen carrying, steel drums and Polybags. all the 3 methods are used widely in Iran and business in this regard sound promising for investors and medium size business owners. I've heard a lot from companies from EU and China about new inventions in this sector but haven't yet met any trader or refinery using these methods.

I personally prefer Polybags, as a business to start. why? because it's more innovative, needs less capital and has some advantages comparing to two other elder brothers! Some advantages using Bitumen packaging bags are:

  1. Bitumen Packed In 35Kg (+/-5%) so it's easier for lifting & carriage
  2. Environment friendly and  safer than Drums. Polybag melts along with Bitumen in melting process at site.
  3. No waste Residual Bitumen left compared with Iron/steel drums.
  4. Cleaner process all the way until reaching the end-user.

regarding Steel drums, let me advise you one thing: never go for used drums!! neither as a trader, nor as a customer. cold rolled steel drums coated in anti rust black with description as Follows:
Height: 98 cm
Diameter: 50 cm
Thickness: 5/6 mm
Gross Weight: 190 Kg
Net Weight: 180 Kg
Tolerance: +/-3%
these drums are much more expensive and the size of company capital needs to be tremendously higher.
and there are many big companies active in this field. the last dis-advantage about this business is you are always affected by fluctuations of metal prices world-wide.

costs: polybags are 20 USD per MT, Drums 30-35USD per MT and Bulk depends on transportation costs
also polybags are 50% cheaper in regard of human labor cost during the packing process.
Cargo charges, melting process, waste handling and disposal, loss of material are other facts to be considered by traders.
the problem is the environment temperature, which should be lower than 30 degree Celsius.

well, if you have made up your mind and want to start a business in Iran regarding packing bitumen, you have to know many traders, buyers and all the main and major suppliers. for this reason maybe I can help you!