An Asphalt plant is an investment with huge upside potentials. The only challenge one faces is factors to consider when investing in one. Knowing what to look for will make your investment a success. The following Asphalt Plant Selection Tips will guide you to make the right decision.
• Batch plant or Continuous Mix (Drum) Plant
• Portable or Stationary Asphalt plant
• Production Size
• Used or New Asphalt plant
• Cost and Choice of Brand
• Asphalt tank Size
Batch plant or Continuous Mix (Drum) Plant
A batch plant is most suitable if one does not intend to operate the plant continuously. They are also ideal if the mixing will be happening in one ‘run.’ This is where various mixtures are made in the same operation before pausing production. In a continuous mix aka hot mix recycling plant, the Asphalt plant works continuously for long hours. This is more common in a huge production environment. The batch plants have many moving parts which makes them expensive to operate per ton. The many moving parts also increase the cost of maintenance.
Portable or Stationary Asphalt plant
The decision to either buy the portable or the stationary plant is determined by the sit of operation. If the production site will be shifting say four to five times a year. It is best to buy a mobile asphalt plant. The cost of such a plant is obviously higher but it will be repaid in less three years of operation. A self erect silo is recommended for this reason. Cranes can be as costly as $6,000.00 per move. However if the site of production will be the same for at least a year, it will be more economical to invest in a stationary plant.
The size of production should be considered when choosing the size of plant to buy. This can be tricky but the best way to go about it is to take a use the busiest month. Use the average of the busiest month to get the average maximum production capacity per day. You should then buy a plant that can handle 120% of the average production. Production plants work best when they operate at 80% of their maximum capacity. It is better to have a small plant with a bigger storage, than a bigger plant that has to make constant start and stops. The stop gaps simply increase the cost of production.
Used or New Asphalt plant
A used machine has one main advantage, it is affordable. The only challenge will be to find one that has not been totally run down. The best option would be one that has been used by only one user and is still serviceable. You will need a technical expert who is impartial to asses it for you. When it comes to new investors, the new asphalt plant has one advantage; you get the installation support from the supplier. Most suppliers are willing to help in setting the machine up. They will also assist in Air quality compliance by proving their machine complies with industry regulation. You are also assured of its working condition.
Cost and Choice of Brand
The point to remember is that basically all machines meet the standards set by the industry regulator. They have been tested and will work as promised. The only major factor comes in the pricing in relation to quality. The cheaper price could be an indicator of some serviceable parts that will wear out faster. The specification sheets will offer the best indicator between competitors. Consult experts to find out the weakness of each machine. Finally, remember that the least expensive is not always the cheapest. When in doubt, seek the help of an expert in the industry. The money spent in consultation will save you a lot of repair work in the future.
Asphalt tank Size
It is best to use as much storage as possible. This will be more economical during production. You will never be at the mercy of the oil suppliers as long as you plan ahead. All you have to do is make sure that your silos are full. It is easier to add more to a larger empty silo, than adding less to a small full silo. Having constant supply of oil will guarantee that production goes on continuously even when there are delays with the delivery trucks.
The final step you have to take after considering the above factors is the permit. It is important to establish the possibility of you getting an Air Quality Permit. Buying a new Asphalt plant can help you get your permit faster. Permits can delay or stop your asphalt investment from taking off completely. Either way, you want to be sure that your business will conform to all laws before making any financial commitments.
Buying an asphalt plant is a huge investment step that needs a lot of research. You need to find out if there are potential customers waiting to engage new suppliers. If it is for your own paving operation, you need to know why you can’t source the mixes from someone else. Your research should totally satisfy you investment, and prove that the investment will repay itself, and make you some profit. You also need an exit strategy if it is not a long term operation. You need to know how much you are likely to re-sell it. If there is a likelihood of making a loss, then you have to consider other options. Keep the above Asphalt Plant Selection Tips in mind while doing so. Most important consider seeking expert advice on your specific situation.
For more info about the product. Please visit www.gpegroup.com.au