The plant is calibrated to treat and recycle up to 100 tons of plastic waste materials per day 365 days a year. Incoming waste will be processed immediately eliminating any stoppage. Huge storage areas are not needed. The plant will be operated by a staff of 14 people spread in 3 shifts to work 24 hours a day. Panda Technology
will charge a “tipping fee” of 50 euros per ton of plastic waste, generating at full capacity a revenue stream of 1,825,000 euros.
However, the main source of income will come from the sale of synthetic diesel at a price of
0.4 euro per liter, i.e. roughly 20% below the pre-tax price of fossil diesel in Spain. Diesel will be sold to whole-sale distributors to avoid distribution costs. We estimate full capacity of net diesel sales at 66,300 liters per day translating into a daily revenue stream slightly below 27,000 euros or 9.7million euros per year. Total yearly revenues will top 11million euros.
The plant will work at full capacity after a 6month testing period at 30% of capacity. On the expense side, we estimate yearly operating costs slightly above 3million euros including land (50,000 euros), auxiliary materials (682,000 euros), maintenance (482,000 euros), salaries (1,300,000 euros) and miscellaneous costs (500,000 euros for administration, office, security and insurance). Our base case projects an EBITDA/Income ratio of 72.8% or 45.6% after debt repayment. Break Even Point (Percent capacity
to cover operating costs) is 23.6%.