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The Sawdust Charcoal Briquettes Industry

There are investors who venture into the industry to solve the waste disposal problem for their related wood industries and there are also investors who venture into the industry lured by the lucrative (only moderate) project paper from some machine vendors. In either case, the failure rate is very high as recorded in the present producing countries. The common problem faced by the manufacturers are lack of technical backup/know-how, marketing, unexpected financial investment and raw materials.

Those who have visited a similar industry will be convinced for his/her confidence at the first glance, unfortunately all manufacturers suffered from heavy losses when they first venture into the business. Even those who owns a similar plant when expanding into a new plant differently located, suffered from operation losses when the raw material changes. They take a long time, months or years perhaps, to perfect the operation. Those who are new to the industry, usually will takes many years to get the operation right. There is no complete researches done on the industry by any non-profit organisation, the know-how are developed in-house individually with trial and error method, a very expensive way of learning. Most give up their business when facing excessive unsolved technical problems and unexpected financial expenditure beyond their means.

Sawdust Charcoal Briquettes

Many investors are only quoted for the cost of the machineries (by vendors) without realising other expenditures such as kilns, infra structure, pollution control and other incidental cost that may cost three to fivefold of the initial machineries investment.

The market for the product has not appreciably increased since the last decade. Despite of that, the market is saturated at the moment by excessive supply with the increasing number of producers.

Sawdust Charcoal Briquettes

The technical know-how - as was mentioned no one will share their expensive experience. free transfer of technology, Some producers pinch away skilled workers from their successful counterpart with a great hope to have a fast and cheap technology transfer, this immoral trick has not been proven workable so far and everyone has to undergo trial and error rule to adopt to the new enviroment such as raw material and different set-up of the plant. The know-how covers raw material, briquetting and charring process. No one has ever developed a comprehensive written instruction for their plant, there are too many variants to consider and decide, only those who are long enough in the direct operation will able to interpret it more correctly/instantly. This is even tougher for those operation utilising the tropical wood waste where hundreds species of wood wastes are available in their stock yard unsorted at any moment.

Marketing - other than those who are established, marketing is another tough challenge in the industry, many new comers do not even carry any true statistical figure on the demand of the product globally. Many are lured by the illusion painted by irresponsible traders who fivefold or even tenfold the actual demand when he/she is desperated for the supply during the peak season in the purchasing countries. Many manufacturers expand their plants and regret when they realised otherwise. Many producers are caught in this unpleasant dilemma today. The ready market are found in only Korea, Japan and Taiwan, unfortunately most already have their contractual tie with the established producers (for the assured quality) and the supply is in excess than demand today. On some occasions, those who promote the industry also promises the same and no one will escape from the same tragedy.

Capital investment - many have been promised for the low investment cost for the industry, it has never been true. A profitable, minimum/optimum sized plant will cost Million(s) (USD) when the plant is perfected for quality and marketable product. Many started with a projected cost of quarter Million (USD) perhaps, and ended with paying Million(s) (USD) when he/she is advised to provide additional infra structure and other facilities in stages, losses in the course of improvement/rectification is unpredictable.