One of the promising areas of business is the processing of scrap metal. But, as in any business, there are many nuances and various issues. First of all, it is necessary to find a suitable place for the construction of the enterprise, to equip the workshop taking into account modern requirements, to obtain documents permitting work with metal. Let's try to consider the main issues related to how to make money on scrap metal.
Is it worth it to open a business like scrap processing
Despite the fact that it is difficult to predict the long-term need for certain areas of metal processing, we can say with confidence that in general metal is always in demand, despite all the fluctuations in the economy.
Since metal does not lose its properties during recycling, it is successfully used in the manufacture of products after remelting. Therefore, the opening of such a business as scrap metal processing is always a stable income. It is only important to approach the organization of a business correctly.
Since the creation of such an enterprise requires large financial investments, you need to carefully consider everything so that your investments begin to generate income as quickly as possible. To begin with, we will consider what equipment for scrap metal processing is used at similar enterprises.
Baling presses
The baling press by its principle of operation is quite simple, therefore its cost is relatively low. The machine independently performs the entire process of creating and compacting a briquette from metal waste. The operator only starts the mechanism, and the press independently performs the work.
Scrap metal is fed into a special compartment for loading. When the baling press is filled to the required level, a signal is sent to the operator. After that, the press is launched directly, which, sinking on the metal, rams it.
Press shears
Press shears are also very often used in metal processing plants. Press shears are stationary and mobile. Mobile, of course, is more convenient in that they can be transported, but at the same time they are less powerful than stationary ones.
From the name of this equipment, you can understand that it is used to grind scrap metal. Special scissors are installed in the press scissors, which, when launched, crush metal into small parts. The productivity of such a unit can be equal to thirty tons of products per hour.
There is still a mass of various equipment that is selected depending on the specific production tasks.
Business plan
In order to open a scrap processing plant, it is necessary to draw up a detailed business plan, which includes choosing the location of the future enterprise, collecting documents, registering, calculating estimated costs and revenues, purchasing the necessary equipment and creating a customer base.
When drawing up a business plan, first of all, it is necessary to calculate the income and expenses of production. Initial expenses will mostly be associated with the rental of premises and the purchase of equipment. This amount depends entirely on the direction and volume of production. Part of the costs will be wages to workers.If you purchase the most advanced equipment, on which most processes are automated, then you can reduce the number of jobs, thereby reducing the number of monthly salary costs.
The calculation of income is carried out by deducting from the total profit the cost of utilities, wages, raw materials, etc. On average, the profitability of this business is about 15-20%.
What is a metal license
To open production aimed at scrap processing, it is required to obtain a license for metal. This is a government permit that gives legal entities the right to purchase, accept, trade and process non-ferrous and ferrous scrap. Without this license, buying and selling metal is prohibited.
In addition to providing all the necessary documents, in order to obtain a license for metals, it is necessary to pay a state duty.
To obtain a license, production must meet the requirements for work. These are the conditions regarding the premises, the complex of equipment and the working personnel. As for the equipment, it is necessary to pay special attention to it.
To obtain a license at any enterprise, the following must be installed: a press, equipment for grinding and sorting chips and a dosimeter.
Since each regional structure is loaded differently with the amount of work, and each state entity has its own legal acts regulating this sphere, the period during which the metal license will be issued is different. As a rule, environmental committees issue a license approximately 45 days after submitting an application and a package of documents.
Depending on the type of license being issued, its cost is differentiated. The state allows the company to obtain licenses for black and non-ferrous scrap both separately for each type, and a single one. Moreover, a license for both types of metals at a cost will be cheaper than two licenses.
Getting started with little financial cost
If you don’t have enough initial capital to purchase expensive equipment, you can start a business by creating a scrap metal collection point. And to hand over collected scrap metal to the scrap processing points. For such a business, you will need to purchase large-tonnage truck or suspended crane scales, and regular ones on which non-ferrous metal will be weighed will also be useful.
Two employees will be enough for such a business - one will weigh the scrap metal, and the second sort. We especially advise you not to save on employees' salaries, otherwise they will weigh customers, and this will negatively affect your business.
When this business will bring a stable income, you can think about expanding it, that is, purchase equipment for metal processing. Moreover, you will no longer have problems with where to look for scrap, as there will be regular customers who are steadily delivering metal.
Business Benefits
Besides the fact that scrap processing can be very profitable, it brings great benefits to society and the environment.
Since scrap metal does not lose its properties during processing, new products are created from it that do not require ore smelting.
As for ecology, nature is also a winner for here, since the oxidation of the metal in the soil causes irreparable damage to it. Therefore, the collection of scrap metal can be called not only resource-saving, but also a humane type of business.
Conclusion
Metal is still the main material used in a wide variety of industries. Due to the good demand for metal, scrap metal processing can become a profitable and stable business. This business requires a large initial investment, because in addition to payment for premises, sites and employee benefits, you will need to purchase expensive equipment.But if you correctly draw up a business plan, scrap will begin to bring a steady income in six months, fully recouping the initial costs.
