Ready Mix Concrete Plant Feasibility Study

Description of ready-mix concrete plant

It is a ready-mix concrete plant where the project produces ready-mix concrete, which is a heterogeneous mixture of sand, gravel, cement and water. Some other materials (additives) can be added to obtain certain properties. The proportions of these materials in the concrete mixture are chosen according to the type of work required and the available materials. By mixing these materials together, concrete is obtained that begins to harden gradually over time until it becomes solid and strong, and its strength varies according to the basic components as well as according to the mixing method during pouring and the type of processing in terms of adding chemical enhancers. The idea of the project comes from the continuous demand for ready-mix concrete and the huge boom in various industrial and housing fields due to the current development and urban renaissance in which the construction field needs ready-mix concrete, making the demand for this project increasing, and because the raw materials needed for it are available, namely cement, sand, gravel and other additives, it increases the chances of stabilizing its production processes. The goal of the project is to meet the requirements and needs of the region due to the abundance of urban development and benefit from all the elements of sustainable development. The project targets the local market (contracting companies – real estate investment companies – contractors)

Why mashroo3k ?

Mashroo3k has over 10 years of experience in preparing feasibility studies, market research, and providing a wide range of consulting services, including administrative, economic, financial, and others.

Mashroo3k has offices in 7 international branches, located in Saudi Arabia, the UAE, Egypt, Qatar, Oman, Yemen, and Iraq, in addition to its agents in China, Singapore, and other countries.

Mashroo3k has provided over 7,000 services and feasibility studies, helping thousands of clients achieve their investment goals.

Mashroo3k’s services are accredited and trusted by all financial institutions and entities in the Middle East.

Mashroo3k’s service coverage extends to 35 countries across all continents.

Mashroo3k is a member of over 100 prestigious international institutions specializing in market research and business management.

Mashroo3k’s team consists of 350 consultants with extensive knowledge of economic sector indicators and opportunities. Thanks to the diversity of their expertise, they ensure effective solutions and strategies.

Mashroo3k is contracted with over 10,200 suppliers in 22 countries to support projects logistically with production lines, raw materials, machinery, equipment, and similar resources.

Mashroo3k possesses a vast database that enhances the accuracy of its predictions and analyses, as well as its ability to manage risks effectively.

Achieving good returns and cash flows with added economic value.
Optimal utilization of the project’s resources and assets.
Achieving a high level of quality.
Contributing to covering part of the increasing demand for the project’s products.
Contributing to creating new job opportunities for citizens.
Using the latest technologies in ready-mix concrete manufacturing and training workers on them.

Executive summary

About the project
Financial indicators
Justifications for establishing the project
Government investment incentives in the project field
Target markets
Indicators and final results of the project

Study project services/products

Project Description and All Its Products/Services.
Project Advantages and Production Requirements.

Market Size Analysis.

Understanding Distribution Channels.
Consumer Behavior, Preferences, and Habits.
Competitors’ Products or Services, and Their Strengths and Weaknesses.
Market Nature and Characteristics.
Demand Size for the Product or Service Offered.
Available Market Share of the Target Market.
The Optimal Marketing Method.

Risk Assessment.

Risk Identification.
Impact of Risks on the Project.
Risk Mitigation Methods

Technical Study

Detailed description of the project’s products.
Expected production capacity.
Identification of investment costs.
Determination of electricity and water requirements.
Identification of the project’s labor needs.
Identification of the project’s supplies.
Calculation of construction and building costs.
Calculation of total capital.
Determination of annual operating costs.
Determining the working capital.

Financial Study

Total investment costs required for the project.
Organization of cash flow statements, income statements, and balance sheets for the first ten years of operation.
Estimation of expected annual revenues in light of defined operational capacities.
Optimal financing structure for the project based on investors’ capabilities and funding conditions.
Financial indicators for the project and sensitivity analysis.

Organizational and Administrative Study

Workforce for the project.
Organizational structure.
Job responsibilities.

Risk Study

Identification of risks.
Impact of risks on the project.
Risk prevention methods.

Given the importance of the sector, Mashroo3k presents below the key indicators for the construction sector in the GCC countries:

Kingdom of Saudi Arabia (KSA):

The construction and building sector’s GDP value: 168.75 billion SAR.
Contribution of the sector to the GDP: 4.66%.
Number of companies operating in the sector: 148,026 companies.
Number of employees in the sector: 3,541,977 individuals.
Value of projects executed in the sector (latest statistics): 311.56 billion SAR.
Saudi Arabia leads the region as the largest contracting market, with an annual value exceeding $100 billion USD.

United Arab Emirates (UAE):

GDP value of the construction and building sector: 123.953 billion AED.
Sector’s contribution to the GDP: 8.3%.
Number of companies operating in the sector: 42,428 companies.
Number of employees in the sector: 1,564,095 individuals.

Kingdom of Bahrain:

GDP value of the construction and building sector: 936.79 million BHD.
Sector’s contribution to the GDP: 7.70%.
In 2016, the sector’s value did not exceed 857 million BHD, but it has grown over a few years to reach 945.51 million BHD.

Sultanate of Oman:

GDP value of the sector: 1.943 billion OMR.
Sector’s contribution to the GDP: 6.7%.
Number of employees in the sector: 548,999 individuals.
- The construction sector employs the highest percentage of workers in Oman, representing 22.4% of Omanis in both the private and public sectors.
- It also employs 29.6% of the total expatriate workforce in Oman.

Kuwait:

GDP value of the construction and building sector: 838.9 million KWD.
Sector’s contribution to the GDP: 2.14%.
Number of companies operating in the sector: 1,502 companies.
Number of employees in the sector: 187,705 individuals.

Qatar:

GDP value of the construction and building sector: 81.215 billion QAR.
Sector’s contribution to the GDP: 12.1%.
Number of companies operating in the sector: 5,629 companies.
Number of employees in the sector: 840,999 individuals.
- The construction sector accounts for over 40% of the total economically active adult population.

Global Construction and Building Sector:

The construction and building sector is considered one of the most promising industries. Investment in this sector is expected to yield substantial returns due to population growth and infrastructure improvements.
Experts forecast that the sector will grow at a rate of 4.2% over the next three years. Market indicators suggest the value of the sector will increase to $10.5 trillion USD in 2023.
In 2020, the global construction output was estimated at $10.7 trillion USD, and it is expected to grow by 42% (an additional $4.5 trillion USD) between 2020 and 2030, reaching $15.2 trillion USD by the end of the decade.

The construction sector contributes about 13% to the global GDP and this percentage is expected to rise to 13.5% by 2030. According to the statistics available to us, infrastructure will be at the top of the list of the fastest growing sub-sectors in the construction sector at a rate of 4% during the period (2020-2030).

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