AAC Plant Business Plan:
Company Description:
Green Earth AAC, Inc. is formed for the sole purpose of operating an Autoclaved Aerated Concrete Manufacturing Plant in the state of Oregon.
Green Earth has contacted Hess AAC Systems for plant building, setup, and equipment.
HESS AAC Systems B.V. (previously Stork Bouwtechniek) possesses specific know-how on the building of machines and plants for the autoclaved aerated concrete and sand-lime brick industry.
About thirty years ago HESS AAC became active on the AAC market, concentrating mainly on manufacturing, installing, and maintaining the production machinery for the world market leaders in AAC. During this relationship, HESS built several production lines for key customers in Europe.
Today, HESS is known worldwide for its excellent craftsmanship, engineering know-how, and high quality of the products and services it supplies. The machinery is robust and equipped with first class components at a very competitive price level.
HESS offers the following Factory Key Advantages:
High quality, modern machinery
HESS is known worldwide for its excellent craftsmanship, engineering know-how, and high quality of the products and rendered services and worldwide excellent after-sale services. The machinery is very robust and equipped with first-class components, as can be established by systems that have been supplied 30 years ago and that are still in successful operation.
Tilt and back tilt system offers the best of both technologies
The tilting mould system using a tilting crane allows a controlled tilting movement of the cake, as it is transferred to the platform, which was part of the mould, and does not transfer this to a different product carrier that could cause cracks in the cake during tilting.
Cutting in a vertical (tilted) orientation allows for the advantages of a tilt-cake system, being mainly the possibility to make easy profiling and hand-grips in the green stage, as well as requiring shorter rising times and therefore less moulds.
However, the normal tilt-cake system has two major disadvantages, being the requirement for bottom-waste (bed) due to process reasons as well as the sticking of the horizontal cut layers caused due to the fact that these layers lie on each other during the autoclaving process. Both of these process-related waste combined cause a white waste volume of 5-8% of the production volume. This white waste cannot easily be recycled and, therefore, additional costs in raw materials and energy.
To overcome this, HESS has developed its back-tilt system, which tilts the cake back after cutting and, therefore, allows for horizontal autoclaving. Further, it is now possible to remove the bed waste in the green stage (during which it can still be reused in the process). Due to the horizontal orientation during autoclaving, the horizontal layers are not lying on top of one another, and sticking is reduced substantially. In some cases, it might even be possible to save the investment for a separating machine.
High volume at relative low operational costs
The factory concept and the installed machinery and equipment are designed for a total production volume of over 450.000 cubic meters AAC per year. When doing the initial design, they take great care in preventing any bottlenecks. Therefore, they have several stages not included for multi-functional machinery but rather two separate machines to ensure that this required high capacity can be achieved.
Flexible degree of automation
All machinery and equipment that will have an influence on the product quality, such as the mixing and dosing system and the cutting line, are designed with a high degree of automation. In order to reduce the initial investment, it is possible in some other areas of the plant to have certain functions fulfilled manually; however, they have included automation of these functions as an option. This will allow the company to determine the feasibility of these possible investments.
HESS has been contacted to build a manufacturing plant based on the tilt-cake technology (tilt-crane system) with back-tilt for the production of high-quality Autoclaved Aerated Concrete (AAC) blocks. The tilt cake with back tilt technology combines the advantages of the two systems for which HESS has proven solutions. The advantages of a vertical cutting are combined with the advantages of the horizontal autoclaving.
The plant offered is a standard KBT-1100 plant with the theoretical capacity of 1100 m³ per day and designed for 300 working days per year. Theoretically, the plant will also be able to produce at a faster cycle time and, therefore, further extensions of up to 1.500 m³ will be possible.
The plant can also be extended to be able to make reinforced products including panels up to 6 meters in length.
Green Earth AAC has in place specific plans by HESS to engineer and build the Autoclaved Aerated Concrete Plant. The plant will be equipped with the latest machinery and layout to increase productivity, eliminate waste, and operate efficiently to maximize profits.
It should be noted that though Green Earth AAC will be earning profits, this will not be the only factor driving decision making. Green Earth AAC will consider the effect on the environment, or social effects, before making decisions.
Location:
Green Earth AAC, Inc. will purchase land in Crook County, Oregon to establish the AAC Manufacturing Plant.
Crook County is a county located in the U.S. state of Oregon. The county was named after Major-General George Crook from Ohio who served in the American Civil War and afterwards fought in the Indian Wars. As of 2000, the population was 19,182. The county seat is Prineville.
The median income for a household in the county was $35,186, and the median income for a family was $40,746. Males had a median income of $32,166 versus $22,580 for females. The per capita income for the county was $16,899. About 8.10% of families and 11.30% of the population were below the poverty line, including 13.90% of those under age 18 and 8.10% of those ages 65 and over.
Forest products, agriculture, livestock raising, and recreation/tourism services constitute Crook County's total economy. Agriculture is supported by the development of irrigation districts, which permits the raising of hay, grain, mint, potatoes, and seed. Range and forest lands allow grazing for a sizable livestock industry. The Ochoco National Forest's stand of ponderosa pine is the main source of lumber. As the lumber industry suffers from restrictions on log cutting, tourism and recreation are helping to strengthen the economy. Thousands of hunters, fishers, boaters, sightseers, and rockhounds are annual visitors to its streams, reservoirs, and the Ochoco Mountains. The Prineville Chamber of Commerce provides access to over 1,000 acres (4 km²) of mining claims to rockhounds, who can dig for free agates, limb casts, jasper, and thundereggs.
Crook County, Oregon consists of beautiful country with sloping hills and lots of open spaces. The Green Earth AAC plant will be located in Crook County, but sale of the Autoclaved Aerated Concrete will be available to the construction industry of Oregon.
Management Team
Green Earth AAC, Inc. will be filed as a corporation in the state of Oregon. Green Earth’s organizational structure will be as follows:
James Pasmore 55%
John Wright 15%
Preferred Stock 30%
Mr. James Pasmore is an entrepreneur. He has the developed the following skills:
• Business Development
• Financial Planning
• Internet Marketing
• Website Building
• Launched Several Businesses including Pasmore Investments and Prosperity Canyon LLC.
• Able to Manage and Schedule Multiple Employees
• Profit Generation through Property Investment
• Multiple Diverse Business Contacts
Mr. Pasmore has the experience and knowledge to develop Green Earth AAC into a leader in the Concrete Industry.
Mr. Pasmore is an avid business leader, and he has consulted many businesses in the following areas:
• Developed Business Structures
• Developed Marketing Plan
• Communication Systems
• Research and Development Plan
• Financial Planning
• Marketing Strategy
• General Contracting Investor
James Pasmore will build Green Earth AAC into a manufacturing plant that will operate efficiently and at full capacity.
Mr. John Wright is currently a construction company owner. Mr. Wright has owned and operated Masonry Company for over 21 years. He knows the benefits of Autoclaved Aerated Concrete.
Mr. Wright has extensive experience with Business Development coupled with creative ideas for marketing development applications and a solid history of building success. He has strong analytical and planning skills combined with the ability to coordinate the efforts of many to meet organizational goals.
Mr. Wright has achieved the following throughout his career: (all projects listed were done in AAC):
• Partnership development of 48 units for the Winchester Bay Town home project
• Architect Conservator for Historical Restorations—State of Oregon
• Successfully developed 16 lots in the Falcon Ridge subdivision in Crook County
• Construction of Multiple multi-million dollar homes
1. Henderson, Nevada
2. Roma Hills Subdivision
• Constructed 40+commercial projects and 8+ industrial projects
• Land Development, Investor, Market Development, Engineering Consultant
• Developed specialty tools for the AAC industry
• Consulting for General Contractors
• AAC Application Trainer
• AAC Plant Design and Management
Together, the two principals, Mr. Pasmore and Mr. Wright, will ensure the success of Green Earth AAC, Inc.
Investment Highlights & Marketing
Autoclaved Aerated Concrete (AAC) is an ultra-light concrete masonry product. It can weigh as little as 1/5 as much as ordinary concrete due to its distinct cellular structure, featuring millions of tiny pockets of trapped air. This cellular structure gives AAC a number of exceptional physical characteristics.
This is not a "new" innovation. Autoclaved Aerated Concrete has been around for over 80 years. Invented in 1923, AAC has been used extensively in Europe and Asia. It comprises over 40% of all construction in the United Kingdom and 60% in Germany. More AAC is produced worldwide than any other building material with the exception of regular concrete. It has only recently been introduced in the United States.
AAC consists of basic materials that are widely available. These include sand, cement, lime, gypsum, water, and an expansion agent. Silica sand, the raw material used in the greatest volume in AAC, is one of the world's most abundant natural resources. The finished product is up to five times the volume of the raw materials used, with an air content that is between 70% and 80% (depending on the required strength and density). Due to this large increase in volume, AAC is very resource efficient.
Green Earth AAC's Keys to Success will be the manufactured product and the benefits it brings to the construction industry.
AAC Attributes
• AAC is lightweight, about a fifth the weight of concrete (it will float on water).
• AAC can be engineered for earthquake and tornado regions and in hurricane prone areas where it can withstand severe wind loads from storms.
• AAC works a lot like wood. It can be cut, drilled, shaped, and sanded with hand or power tools. Electric chases are easily sawn or routed in. A variety of fasteners are available to meet pull and shear requirements.
• AAC is non-combustible with a UL fire rating of 4 hours for a 4 inch non-load bearing wall. Also, when exposed to fire, AAC gives off no toxic gases. Given the current concern over wild fires in the South West, AAC can be an important choice for the building shell of a home.
• AAC has unique thermal properties because of its cellular structure. It combines high heat-loss resistance for a masonry material with excellent thermal inertia, resulting in an overall 'mass enhanced R-value'. AAC is renowned for its energy efficiency and gentle thermal motion in hot or cold climates, especially in areas that experience large day-night temperature swings.
• AAC has exceptional sound-absorbing characteristics. Because the material has a porous structure containing 60-70% air, it performs as an acoustic insulator to reduce sound transmission.
• AAC is impervious to termites and boring insects and will not rot or decay.
• AAC provides a vapor-permeable, breathable wall system
• The manufacturing of AAC materials is a pollution-free process that makes best use of a minimum amount of energy and natural resources, resulting in a premier green building material.
Aerated Autoclaved Concrete (AAC) is a light-weight building stone whose crystalline matrix combines the properties of insulation and thermal mass in one structural material. For decades the unique attributes of AAC have been utilized in architecture around the world, especially in harsh conditions of cold and heat, damp and dry climates, as well as earthquake and hurricane regions. One of its greatest abilities is to act as a thermal damper, to regulate daily high and low temperature extremes, and thereby reduce overall energy requirements in buildings. AAC is a multi-generational building material that will consistently out perform other materials over the ‘testing’ of time.
The United States is just now starting to realize the benefits of AAC. Green Earth will offer the Oregon area a choice of exceptional building materials that will last for future generations.
Autoclaved Aerated Concrete can now add another advantage; It is available in the United States.
And it's about time, too. For while AAC was invented more than seven decades ago it has been unavailable in the United States except for a handful of demonstration projects. It is produced in more than 200 factories throughout Europe, Asia, the Middle East, Africa, Australia, and Latin America and has been used successfully in almost every climate and building type. By some estimates, a greater volume of AAC is produced every year than any building material except regular concrete.
The introduction of AAC into the United States is driven by changes in the construction marketplace. Lumber price inflation has challenged builders to look for alternatives to wood framing. Many U.S. designers have become familiar with AAC while working on international projects. The environmental qualities of AAC have made it increasingly attractive. AAC can satisfy the more stringent construction standards promulgated in the aftermath of recent hurricanes and earthquakes. Anecdotal evidence also suggests an increased concern overall for the quality of construction and life-cycle value, due perhaps to the aging of the baby-boom generation.
These factors, plus the continuing strength of the construction economy, have given investors the confidence they need to commit the $20 to $30 million or more required to build an AAC plant.
The growing demand for AAC in the United States and the shortage of manufacturing plants will add to the volume of production of Green Earth AAC. They will not have a shortage of customers.
The bottom line on AAC is, of course, its affordability. AAC is competitive with other building materials, and it offers benefits that can reduce the total cost of a project. For example, the light weight of AAC compared with conventional concrete and masonry yields overall structural economies by reducing the mass that must be considered in seismic design and the dead load transmitted to foundations and superstructure members. AAC is economical to ship and handle and installs easily without special crews or equipment. Prefabrication and quick erection shortens construction time, reducing construction and financing costs. AAC's durability, fire resistance, and energy efficiency may reduce property insurance premiums and operating expenses, contributing to the product's life-cycle value.
Green Earth AAC will market their product by the following:
• Magazine Ads in Bend Living, Casade East, Luxury Homes, and others
• TV Commercials to increase knowledge of product
• Member of AACPA
• Networking with general building contractor in the state of Oregon.
• Web Site
• Radio
As knowledge of the product increases, the already overwhelming demand for AAC will increase. Green Earth AAC will track market and industry demand to determine expansion plans as it becomes a necessity.
Products and Services
Green Earth AAC will offer the following products:
• Blocks
• Bricks
• Lintels
• Clading Panels
• PowerPanels
• Value Panels
• Floor and Roof Panels
• Jumbo Blocks
• Wall Panels
Autoclaved Aerated Concrete is made from the following materials:
Green Earth AAC, Inc. will always try to accommodate the client. If a customer has a special need or size, they will adjust specifications to please the client.
Competition
Autoclaved Aerated Concrete (AAC) has been used throughout the world for decades; however, AAC buildings have been constructed in the United States with minimal national awareness. AAC, with an impressive list of benefits and projects throughout the United States, will be the building product of choice in the future. It is classified as a recyclable GREEN product.
The awareness and demand for AAC is beginning to grow in the United States. With few manufacturing plants available, Green Earth AAC will have a minimal amount of competition.
Financial Need and Use of Proceeds
Green Earth AAC, Inc. has invested around $10,000 and years of time toward the organization and start-up costs of the company. They are looking to acquire funding of $24 million in order to begin the building of the plant facility and begin operations.
Start-up Costs:
Land Purchase $ 2,000,000
Plant Construction and Equipment $18,000,000
Materials $ 1,500,000
Marketing & Education $ 500,000
Organizational Costs $ 300,000
Working Capital $ 1,700,000
Total: $24,000,000
Financial Projections
Investment Conclusion
Green Earth AAC, Inc. is offering up to 35 percent of its Company in the form of 25,581,395 Shares of Cumulative Convertible Preferred Stock. The Preferred Shares may be converted to Common Stock. The Maximum Offering of shares represents an ownership interest of 35% of Green Earth AAC, Inc. Each Preferred Share has a par value of $0.001 per Share, is convertible into two Common Shares, and carries a dividend of 5%. Shares will be purchased at minimum investment of $5,000. Equity in a growing industry such as the Autoclaved Aerated Concrete Industry is a great investment opportunity to get in on the ground floor of a start-up company before growth is imminent.