Summary

Great opportunity to by this plant at a fraction of its value! PLASTIC BAG & TUBE MAKING MACHINERY/PLANT, INCL. EXTRUDER, 2 COLOUR FLEXO PRINTING MACHINE, AUTO BAG CUTTER/SEALER AND HYDRAULIC HANDLE PUNCH MACHINES and lots of other extras. FULL TRAINING, 100% WORKING CONDITION. Business Plan options and formulas to MANUFACTURE SHOPPING BAGS FROM RAW MATERIAL TO FINISHED PRODUCT.

1. History Background

Fully describe the business's activities?

This is a complete production line to manufacture a variety of plastic bags, from shopping bags to clear firewood bags in a wide range of styles and size in a very straight forward process. Customized label's for advertising or other purposes are printed as part of the production process.

How long has the business been established?

less than 2 years

How long has the owner had the business?

less than 2 years

2. Present Market

How does the business operate on a daily basis?

Currently not operating.

What competition exists?

Only one competitor in Rustenburg. This competitor does not have the capacity to fill all his orders.

What are the seasonal trends?

Wood-bags in winter time @ 75c each x 25 000 per month. Other trends would depend on the area.

3. Financial

Is the business VAT Registered?

Yes.

How could the profitability of the business be improved?

Depends on the market.

Is Seller finance available and for what amount?

No. With a 50% deposit, outside financing could be arranged.

What is the payback period?

If applied well in the right market the costs could be recouped in a matter of months.

4. Staffing

What is the total staff complement?

One full time operator will be needed. Training will be provided.

6. Assets

Is a full asset list on file?

INVENTORY LIST (machines to be included in purchase price and checked on collection) - SD-A 65 FILM BLOWING MACHINE/EXTRUDER & POWER STATION - HDPE EXTRUDER HEAD & TUNNEL ARM - SD-A 65 WINDER WITH EXTRA SHAFT - MICROMETER worth R5500 - HW2001-2006 CORONA TREATER & TREATMENT ROLLERS - S-YDJ-2800 2COLOUR FLEXO PRINTING MACHINE WITH 6 PRINTING CYCLINDERS small-medium-large (2x3) - GFQ800 T-SHIRT BAG COLD CUT & SEALING MACHINE - GFQ600 T-SHIRT HYDRAULIC AUTOMATIC VEST BAG PUNCH MACHINE - SMALL COMPRESSOR - PIPING, CABLES & TOOLBOXES X 2

What is their overall condition?

Very Good!

Do any require repairing?

No - The production line is ready to go. Demonstrations can be arranged.

Which assets are on lease/HP and with whom?

None

7. S.W.O.T. Analysis

Strengths?

Quality plant able to operate at very low cost. To import this plant could easily take over a year and cost close to R1million after shipping and duty has been added.

Weaknesses?

New owner would need to move the entire plant ton their premises. This is however much easier and cheaper than ordering from abroad.

Opportunities?

The opportunities are endless! A variety of plastic bags, from shopping bags to clear firewood bags in a wide range of sizes can be manufactured in a very straight forward process. Customized label's for advertising or other purposes are printed as part of the production process.

Threats?

Depend on the area where the plant will be operated. Bags could be distributed nationally!

8. Reason For Sale

What is the reason for the sale?

The owner of this production line specialises in litho printing, signage and digital printing with 2 leading branches in North West. They imported the entire production a couple of years ago at a cost of close to R700,000 but never got around to focusing on plastic bags and only seldomly used the production line. They have decided to stick to their core business and want to replace this plant with a 4 color litho printing machine that is more in their game and control. They are also moving towards newspaper printing but need to get rid of this equipment to free up space for other equipment.

9. Conclusion

Why is this a good business?

Full production line ready to run at a fraction of the value.

What is the price plus stock and the net profit?

R250,000 Included in Purchase 1) 1 Week training included in price on our premises 2) All existing stock & chemicals to be taken with machines 3) All machines to be loaded in buyer's carrier ready for road freight from sellers premises.