GoodRich MAGMA Industrial Technologies Limited OFFERS 40,000 M3/YEAR THIN MDF PRODUCTION LINE FROM WOOD OR BAGASSE WITH CONTINUOUS ROLLER PRESS FROM CHINA

INTRODUCTION - Thin MDF is made from wooden or bagasse fiber as raw material, added with Urea Formaldehyde resin or other adhesives. Proper density of thin MDF boards with even structure and smooth surface are widely used in a number of applications. Thin MDF line of 40,000 m3/year comprises of the following sections – Wood / bagasse preparation section Fibre preparation section Mat forming & hot pressing section, including continuous roller press Cooling, trimming & sanding section Fire extinguishing system & Electric control systems with PLC controls. 1. Wood / bagasse preparation section - In case of wood, this line consists of chipping, conveying and storing. The raw material is reduced into small sized wood chips by the chipper. Then wood chips are conveyed by bucket lift and belt into a moisture conditioning chips silo. Metal removers are equipped on belt conveyor to protect the refiner from impurities. In case of bagasse, the pith content of 30% is removed, as pith has no fibre value. The pith goes back to the boiler, while qualified bagasse is taken further. Metal detectors are set infront of the de-pithers and also in the conveyors. 2. Fiber Preparation section - Consists of screening, cooking, refining, glue regulating and applying, paraffin wax applying, drying, fibre conveying and storing. Wood chips or bagasse fibre in moisture conditioning silo are pre-heated by saturated steam and transported to the screw via vibrating discharger and then entering the digester to soften the same. Digesting time depends on source of fibre, moisture content, pressure and is controlled through the level trace and feedback system. The cooked wood chips / bagasse are reduced into fibers in refiner housing. Glue and paraffin wax dosing system is controlled and dosed according to the pulp output. Paraffin wax can be either added in housing or in blow valve with glue, in case liquid water-proof additives are used. Fibers after mixing with the glue will be dried by flash dryer which is equipped with spark detecting and extinguishing system, in case of fire. Dried fiber falls onto the belt conveyor and transported to dried-fiber-silo ready for mat forming. 3. Mat Forming and roller pressing section – Consists of forming, pre-pressing, mat sawing, conveying and continuous roller pressing. Dried fiber is transported at certain speed into forming via fiber sifter, and spread evenly onto belt conveyer to form mats with specific thickness and density. Loose mats are pressed by continuous press under pressure & temperature. Waste mats will be recycled and qualified boards are transported to the cooling & drying section via the moving roller conveyor. Heating medium can be steam or hot oil. 4. Cooling, trimming & polishing section – Consists of board cooling, edge trimming and stacking. The board with high temperature will be cooled effectively by cooling machine, equipped with exhaust hood. Passing through the transversal-longitudinal saw, centering machine, hydraulic lift and fork lift, boards will be stored ready for inspection. The whole line is controlled by PLC. The thin MDF made by continuous pressing line does not need sanding. However for thickness beyond 4mm, a light polishing machine gives shining to the board. By appropriate online finish paper coating machine, it is possible to laminate decorative paper on one side of the board, which will open-up new market opportunities. ADVANTAGES OF THIN MDF – 1. Good mechanical and acoustic properties, suitable density, size and     smooth surface. 2. Popular with furniture, package, room decoration, apparatus, car and ship     decoration & having bright future in the building materials market,     with great potential. 3. Can replace 3mm hardboard, both in terms of quality & price. The market     size for hardboard is 75,000 cubic meters in India.     In view of the large market potential, India needs atleast 10 thin MDF     plants over a period of next 5 years. APPLICATIONS OF THIN MDF – Furniture such as cabinet, drawer and door faces Core panel and shutters for door Subtracts for laminate flooring Packaging material Decoration Door and flooring of car, liner of train boxes and interior items for rail road cars Base panel for circuit board and electrical control surface panel Pad for drilling Surface panel for smooth OSB Surface and core of plywood Picture & photo frames Slate manufacturing TECHNICAL PARAMETERS OF THIN MDF PLANT– Description Unit Data Remarks Working System Annual working days D 300   Working shifts   3   Effective hours per day H 22.5   Board specification Length * Width mm 2440 x 1220   Thickness mm 2 – 6 Capacity calculated for 3 mm Density Kg/m3 760-900 Average density 850 kg/m3 Raw material consumption Wood / bagasse depithed t/a 34,000 On Bone dry basis Urea Formaldehyde resin t/a 4400 On 100% solid content basis Paraffin wax t/a 200   NH4CL t/a 100   Urea t/a 100   Process water including for steam t/h 10   Cooling water t/h 35 Can be recycled Compressed air m3/min 8 Pressure – 7 bar Steam for refining and glue preparation t/h 6 Pressure – 15 bar Hot oil for press and dryer Kcal / h 75 lakhs   Installed Power KW 3000   Total Size of the Factory Building m2 3600   Factory length for main line m 120   Factory width for main line m 30   PLANT LAYOUT FOR THIN MDF- LAYOUT OF CONTINUOUS ROLLER PRESS FOR THIN MDF- PHOTOGRAPHS OF CONTINUOUS ROLLER PRESS FOR THIN MDF- SCOPE OF SUPPLY – PLANT & MACHINERY OFFERED FOR MDF PROJECTS – 1. Thin MDF production line complete with more than 100 individual equipments lined up for continuous production, with a capacity of 40,000 m3/year (34,000 tons) - 1 set 2. Formaldehyde (optional) & UF Resin Plants including reactors, storage tanks & pipelines - 1 set 3. Oneline lamination Plant for overlaying melamine coated paper on MDF - 1 set 4. Boiler + thermic fluid heater Plant to supply steam, heated air & heated oil to MDF & UF Resin Plants - 1 set 5. Electrical control panels, motors, starters & cabling - 1 set 6. Erection, commissioning, trial run & training the staff - 1 set 7. Steam turbine & Super-heated boiler of high capacity, as suitable for Co-generation to supply captive Power of 3 MW for 40,000m3 Thin MDF line (Optional) - 1 set COST OF THE PROJECT-   (Rs.in crores)   36,000 m3 thin MDF plant Factory Buildings 4.50 Plant & Machinery including contingencies** (excluding co-generation)*** 27.50 Interest during construction period**** 1.50 Deposits & Preliminary expenses including Consultancy charges 1.50 Working capital margin (25%) 5.00 Total Rs.40.00 crores Notes: * Land requirement will be 7.50 acres Total Built - up area will be 85,000 sq. ft. ** The cost of imported Plant & machinery is mainly from China, with certain imported items out-sourced by them from Europe. In case the Plant & machinery are sourced from European suppliers, the minimum Plant capacity will be 1,20,000 m3 / year & the total project will be Rs. 125 crores. In case the customers prefer Refiner from Austria & Sanding lines from Switzerland, the same will cost Rs. 5.00 crores extra. China has already supplied 400 MDF Plants, which are capable of producing European quality Boards. *** The incremental cost of Co-generation equipments will be Rs. 6 crores. However, the pay-back period for co-generation is less than 3 years. **** The lead time for setting up the project will be 15 months. MEANS OF FINANCE-   40,000 m3thin MDF Plant Share capital - From Promoters & associates - From Foreign institutional investors & Venture capital companies 8.00 8.00 Total 16.00 Term loan from Banks / All India financial institutions / Foreign Finance Corporations 24.00 Total Rs.40.00 crores COST OF PRODUCTION & PROFITABILITY – 1. Average imported prices of Plain MDF in India USD 240 per m3 Add: Customs duty @ 36.736% USD 88 per m3 Add: Port handling charges and importers margin USD 22 per m3 Total cost of imported thin MDF USD 350 per m3 In Indian rupees (average conversion rate is 1 USD=Rs.45) Rs. 15,750/- per m3 Cost per ton (average density is 850 kg/m3 Rs. 18,500/- per ton Less:Excise duty+ transport @ 19% Rs. 3,500/- per ton Suggested Ex-factory price Rs. 15,000/- per ton   Or Rs. 15,000/- per ton 2. Cost of Production per ton - 15,000m3/year A. Wood waste / firewood / round logs of Eucalyptus / other plantation timbers or fresh bamboo,cotton stalks or bagasse with average moisture of 45% -1.5 tons @ Rs.1,500/- per ton Rs.2,250/- B. Cost of UF Resin & Chemicals Rs.2,400/- C. Electricity – 450 KWH @ Rs. 4 per KWH Rs.1,800/- D. Water -2 m3@Rs.100 per m3 Rs.200/- E. Thermal Energy-3,200 kgs of steam & hot oil =800 kgs of firewood or sanding & chipping wastes @ Rs. 1.50 per kg Rs.1,200/- F. Labourers , Staff & Managers - 125 nos. @ Rs. 1,20,000/- per year each Rs.600/- G. Miscellaneous expenses including factory maintenance, administration & sales Rs.550/- Total cost per ton Rs.9,000/- 3. Plant capacities 40,000m3/year 4. Average weight of the board per m3 is 850 kg. Hence the capacity in tons 34,000 Tons/year 5.  Revenue per year from MDF @ Rs. 15,000/- per ton value - addition by way of decorative coating on thin MDF, which is Rs. 3 crores per year Rs.54.00 crores Less: Cost of production @ Rs.9,000/- per ton Rs.30.60 crores 6. Gross profitability before interest & depreciation Rs.23.40 crores 7.  Estimated cost of the project Rs.40.00 crores 8.  Pay-back period (assuming the capacity utilization of 60% during I year, 80% during II year & 100% during III year) Less than 31 months TECHNOLOGY TRANSFER & TURN-KEY CONSULTANCY ON THIN MDF PROJECT– Goodrich’ offers this highly profitable thin MDF board production line for the Indian entrepreneurs. Our services include technology transfer, Co-ordination in design & installation of the Plants as under – 1. Feasibility studies – Goodrich provides complete evaluation of potential panel board project, such as – a. Fibre feed stocks, including sustainable volumes, collection & delivery systems. b. Market opportunities and panel properties needed to meet market demands. c. Economic analysis & operating forecasts. 2. Plant design & Engineering – Goodrich co-ordinates the engineering of manufacturing process, including working drawings for all the building & equipment requirements. 3. Equipment selection & procurement – Goodrich helps to design a panel board plant based on pre-determined requirements & carefully selects the best combination of equipments available to meet these specifications. 4. Project management – Goodrich delivers complete co-ordination of equipment installation from beginning to start-up. 5. Maintenance & spare-parts – Goodrich is fully committed to after – start-up service & pays special attention to potential problems before they arise. For this reason, a full compliment of both standard & specialized equipment components is suggested. 6. Complete Plant operations training – Goodrich co-ordinates for a thorough program at start-up, to ensure that personnel are properly trained in both the operation of the equipment & the management of the facility. Often, many of these individuals have already helped in some phases of erection & the plant specialists will stay at the site to complete the training process. 7. Overseas Marketing support – Goodrich can secure orders for MDF boards from the overseas customers, either on regular basis or till the highly remunerative local market is established. 8. Technology transfer – Goodrich will ensure the smooth transfer of technology from the domestic & overseas suppliers. TECHNOLOGY TRANSFER FEES– Goodrich will charge a fee of 1% to 2% on the total project cost for effecting the Technology Transfer and for providing Turn-Key project consultancy from concept to commissioning. Thin MDF project has been conceived with the increasing global concern for our environment & conservation of timber. Today, thin MDF boards are well established & fully proven with a track record, that includes highly successful installations throughout the World. They provide an environmental–friendly solution to the growing demand amongst consumers & manufacturers alike. At the time of widespread deforestation & with timber reserves under pressure from the growing worldwide demand for wood timber & panel products such as plywood, thin MDF offers low-risk entry into a potentially lucrative market. For more details, please contact – GoodRich MAGMA Industrial Technologies Limited No. 704, 4th 'A' Cross, HRBR Layout 1st Block, Kalyan Nagar, Bangalore - 560 043, Karnataka, India. Ph: 0091 - 80 - 41138200 Email: [email protected] /            [email protected] Website: www.goodrichmagma.com /               www.goodrichsugar.com