Feasibility of Starting a Waterjet Fabrication Plant in Amman, Jordan
This project is an attempt to investigate the feasibility of starting a waterjetfabrication plant in Amman, Jordan to precisely cut marble, granite, andceramics. The frame work of the feasibility study included analyzing theproposed product/service, market size, price and profitability, governmentregulations, culture and religion, and business infrastructure in Jordan.Based on the findings detailed in this field project, it is feasible to start awaterjet plant operating at full capacity of the waterjet machine to produceand sell tiles that compete in quality and price with the local products. Thetable below shows the three-year operating statement for this new venture. (OMITTED HERE) Expense growth is based on the 2009 inflation rate (1.7%) for Jordanwhich is reported by the World Fact Book - managed by the United StatesCentral Intelligence Agency. In addition, business growth rate is based onthe 2009 GDP growth rate of 3.1% which is reported by the same agency.Rent and operating expenses are based on responses obtained fromquestionnaires and interviews with local tile experts with a minimum of 25years of experience and exposure to the customer demands for marble,granite, and ceramics.Sales estimate are done based on the machine capacity of operating at 22hours a day with two hours used for maintenance. It was not feasible toconduct a sales forecast using standard methods due to lack of historicaldata. However, during the business planning, a professional sales forecastshould be conducted at full range.The size of the market in Jordan and the Middle East at large cansupport this new venture. According to Jordan Investment Board, there arenew projects in the construction field planned for the next five yearstotaling $1.3 trillion dollars. In addition, Jordan has introduced many lawsthat protect foreign investments and investors. As a result, manyconstruction projects such as the $6 billion dollar renovation project inAbdali are taking off thereby boosting demands for marble, granite, and ceramics. Moreover, Jordan has signed free trade agreements with theArab states, the European Union, and the United States of Americathereby opening exports to these countries.Local and imported marble, granite, and ceramics tiles are commonlyused in the constructions and decorations of buildings in Jordan. Waterjetcutting technology can be used to capitalize on cutting irregular shapesfrom locally produced marble and granite slabs as well as imported ones.The technology is very precise that it could compete with Spanish andItalian imported tiles especially that the labor rates in Jordan are five to sixtimes less than those in Spain and Italy.
|Year of publication:||
|Authors:||Ahmad, Khaled A.|
|Type of publication:||Other|
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