Do paper cup manufacturing projects achieve the desired results? Will investors generate the expected high profits?
There are many questions that come to mind for anyone considering investing in a paper cup factory.
And of course, the answer was amazing. Studies have proven that paper cups are compatible with nature and decompose in a shorter period of time than plastic cups, which take many years to decompose.
Another factor contributing to the success of this project is the spread of epidemics and infectious diseases, which have led to an increase in the use of paper cups and their subsequent rapid disposal.
That's why many investors have recently been concerned about conducting a feasibility study for a paper cup factory project.
Feasibility study for a paper cup factory project
There is no doubt that a paper cup factory project is a profitable, successful, and guaranteed business venture. This is due to the current lifestyle that requires the frequent use of paper cups throughout the day in restaurants, hotels, schools, hospitals, cafes, offices, clubs, supermarkets, and fast food outlets.
When conducting a feasibility study for a paper cup factory project, the investor should consider the following:
Types of paper cups
The investor should be aware that there are only two types of paper cups and should be neutral in manufacturing between the two types to achieve the maximum possible benefit, which are:
- Plain paper cups of different sizes and thicknesses.
- Plain paper cups of different sizes printed with the company or office name.
- Preparing a study for the project
There is no doubt that studying the project before starting its implementation is one of the factors for the project’s success, because following a systematic, organized and well-thought-out plan will only lead to success.
The feasibility study is prepared by identifying the financing entity necessary to establish the project, then determining the technical aspect of the project and conducting a financial analysis based on the data mentioned in the sub-aspect of the project.
- Develop an ideal plan that includes all the project goals that the investor wants to achieve.
- Knowing how to manage a project in a way that achieves returns and profits.
- Develop an operating plan and a workforce plan.
- Monitor all expenses and costs incurred by the project.
- Monitor all competitors and analyze information about them to know how to deal with them.
- Estimate the quantity to be manufactured.
- Set limits on the size and value of the investment.
- When studying the feasibility, consideration should be given to sales distribution, marketing, and transportation costs.
- Costs of purchasing machinery and inputs.
- Develop a plan to identify the target audience as well as a business plan for the current market.
- Estimate order size, quality and price.
- Review pre-prepared feasibility studies to learn how paper cup production plants are managed.
- Obtaining licenses and work permits.
- Cups are easy to manufacture and market, as they are a daily necessity in many governmental and private establishments and institutions. They are widely used in tea kiosks, fast food shops, cafes, hotels, and other places.
Is a paper cup factory project profitable?
It's a profitable idea that has been tested across the Arab world. Companies have achieved significant returns on investment, with paper cup consumption now accounting for 80% of total consumption, with this percentage increasing during holidays, special occasions, and wedding seasons.
Plastic cup use has reduced to just 20% of total consumption, thanks to the spread of health and environmental awareness through technological means.
It is worth noting that there has been a 2.72% increase in the production and consumption of paper cups during the recent period, which indicates the success and profitability of the paper cup factory project.
How much does a paper cup factory cost?
The project requires an area of approximately 500 square feet and an automatic or semi-automatic cup-making machine. Regular-speed machines are available, and their prices range from a minimum of $10,000 to a maximum of $150,000.
High-speed machines may cost between $25,000 and $35,000, and require tons of paper. The price varies depending on several factors.
How many paper cups does a ton produce?
There is no specific number of paper cups produced per ton of paper due to the difference in weight. Cups may be designed based on several weights and sizes, such as 180-gram cups and 250-gram cups.
However, if the weights are standardized, normal speed machines can produce approximately 45 paper cups per minute, medium speed machines approximately 70 paper cups, and approximately 140 cups per minute.
The price of one ton of pre-manufactured paper ranges from approximately $1,300, while the price of paper used in the base of the cup ranges from only $1,100 to $1,300.
How are paper cups made?
Paper cups go through three basic stages until the manufacturing is complete and they are transformed from the paper stage to the shaping and design in the form of a solid cup with a firm handle. These stages are represented in the following points:
- The first stage is the stage of designing the paper cup paper in the required size.
- The second stage is to design the base of the paper cup with a side wall design to hold the cup firmly.
- The third stage is heating the paper cup and fixing the bottom.
Paper Cups Factory Riyadh
There are many paper cup factories in Riyadh, the most prominent of which are:
1. Arab Factory for Paper Products
The factory specializes in manufacturing paper cups in various sizes, but with the same precision and quality. The factory also prints on these cups as desired.
- The main factory is located in Riyadh, Second Industrial City - Riyadh Street 11383 - Kingdom of Saudi Arabia.
- The factory is open to employees and customers from 8:00 AM.
- To contact customer service inside the factory, call the following number: Tel: +966 55 225 9400
2. Ampco or Sahm Paper Company
It is a company specialized in manufacturing paper coffee cups. The company offers the best types of paper cups in various sizes and shapes. The company also manufactures airtight lids to prevent spills.
These cups are used for drinking tea, coffee, hot and cold drinks and are suitable for use in restaurants, hotels, fast food shops and cafes.
The company's head office is located in the Kingdom of Saudi Arabia - Riyadh - Al-Jaffal Commercial Center - Second Floor - Kingdom of Saudi Arabia.
The company can be contacted via the following phone number:
- Tel: 920022928
- Tel: +966555363275
- Tel: 966543487973
Contact the company via email: sales@ampco.com.sa, export@ampco.com.sa
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