Pellet Manufacturing

Choosing the Right Pellet Line
I received many enquiries from potential investor on setting up wood pellet or EFB pellet Plant .
Most of the questions asked are as follows :
1 ) Price of Pellet Production Line
2 ) Capacity per Hour per Pellet Mill
3 ) I want to visit your factory in production
We are more than glad to received any visitors and offer quotation for our pellet line .
In my opinion , what potential investors should have asked are :
1 ) Effciency of the Pellet Production Line
2 ) Maintenance of the machineries especially the pellet mill
3 ) Return on Investment ( ROI )

We claim that our pellet mill and the whole line can produce > 1 TPH for a pellet mill with 420 internal diameter die , CONSISTENTLY over prolong period of production time . I believe not many can claim this !!!
You can buy Pellet Mill from so many supplier from China are reasonable price , most can produce 1 TPH consistently but not over prolong period of time .
Pellet Mill from China are still in infant stage as the same pellet mill are for feed production . Therefore it is not as robust as machines from USA or Europe which price are at least double .
Efficiency are very important in Pellet Production as the capacity are very small i.e. 1 TPH per machine , you need to be efficient to make profit . If your machine can only run 8 hours per day but others can operate 15 hours per day , others will make double your profit .
In short pellet manufacturing is a race against time .

Many stories from friends regarding their pellet mill performance .
Die cracking , roller bearing need constant change , pellet refused to come out , need additives for smooth production and etc .
1 piece of Die cost RM5,000 , should last 500 ton production , if the die crack by 250 ton , then your cost will go up to RM20 per ton instead of RM10 per ton . Not mentioning down time and failure to deliver to customer will cost you more .

Return on Investment
I am not sure how many of the potential investor have data on the profitability of wood pellet manufacturing . But I believe most do not have complete and accurate data and depends on the fact that they want to go into this business as there is so many enquiries for this product .
This business are definitely lucrative as of now if you have this advantages :
1 ) ample supply of raw material
2 ) good wood pellet production line
A friend of mine once said if you get the correct combination of raw material , machines and customer , you are simply printing money every second .
Conservatively , Our Wood Pellet Line should have payback within 2 year and ROI of over 6% per month .

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