My records and visits to many pelleting plant , be it Wood or EFB Pellet , till todate the failure is nearly approaching 20 plant , big and small included . Definitely the number is much higher than this figure .
Potential Investor must understand the reason behind it to figure out why so many failure in this industries .
I append the major factor for the failure :
1 ) Wrong Machineries
- Pelleting process need very high pressure to bind the dust back into pellet , many machineries are not able to cope with the HIGH PRESSURE and thus will be damage before it even start to really produce pellet .Talking about pressure , do you know how it work ?
- Pelleting need dry dust , dryer are needed to do the job , that is why American Dryer price are in the range of USD1 Million and above , the reason is you need consistent Moisture Dust to be able to produce consistently good grade pellet , otherwise there will be no pellet at all . I doubt many understand the science of drying !!
- Small Pellet Mill smaller than 500 kg / hour are a definite no no unless you are willing to put your money to burn , go calculate the returns !!!
- Go look at my video on Wood Pellet Manufacturing again , look at the rate of output and then compare the price of machineries . Then go visit the supplier and look at their output to be convince .
The above are only 20% of the main factor , if you do not know about the above , please do not invest , do your homework again , don't waste the precious cash for FAILURE .
2 ) Service and Training
- I did mentioned earlier about this . The machineries from China is cheap because they do not provide proper Service and Training , this cost will easily increase their pricing by at least 20% . Low price act as an inducement for potential investor , so many will jump in but end up without anyone to turn to when failure stare at them
- Supplier of machineries are just supplier , I am convince many are great Marketeer , they have never run a pelleting plant before . So when the going gets tough the supplier do not get going , they just ignore you .... , sounds familiar I guess .
- Supplier are from China , they are not locals , they cannot stay long to guide and train local staff , so you can guess what will happen if problems start to crop up , who you gonna call !!
3 ) Experience and Skill
- Ask yourself , how much you know about Biomass and Manufacturing , I would say , if you are going to invest based on the so many inquiries you get from the market , please keep your cash in the Bank , at least it earn interest . If you do not have over few years on Material experience and few years in manufacturing it is a definite no no to invest
- Do you have an enquiring and analytical mind ? Every action will have a reaction , when something happen there must be REASONS why it happen , it cannot happen just out of nothing . There is a Chinese saying , Die also don't know because of what !! I am saying this because this will happen many many times and you will need your skill and experience to overcome it
Mark my word , go check around before you really decide to invest in this industry . There are too many failure which is not good for this industry overall .
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