The [China Aluminum Industry Network] relies heavily on the initial investment required for aluminum extrusion production lines. This includes the cost of importing extruders, aluminum rod heating systems, and other processing equipment. The total project cost is 36 million yuan, covering land, factory construction, facilities, equipment, and installation.
The estimated payback period is five years, with an annual operating time of 6,000 hours, totaling 30,000 hours over five years. Dividing the total cost by the total operating hours gives a capital expenditure of 1,200 yuan per hour.
Once the aluminum extrusion line is operational, additional costs include energy (industrial power and fuel), mold manufacturing, labor, consumables, and maintenance. These are estimated at 1,000 yuan per hour. The extrusion press itself costs 2,200 yuan per operation, excluding other company-related expenses.
All costs must be recovered through the sale of aluminum products. Revenue must not only cover management and operational costs but also post-extrusion processes like spraying, anodizing, and deep processing. Each kilogram produced contributes to covering the plant’s overall input costs. A production halt can lead to greater losses than the cost of the extrusion process itself.
To compensate for other company costs, an additional 50% is added per hour, raising the total hourly cost of running the extrusion press to 2,860 yuan. The goal is to sell qualified aluminum profiles to customers. Increasing the output from 800 kg/hour to 1,000 kg/hour reduces the cost per kilogram:
- 2,860 yuan ÷ 800 kg = 3.58 yuan/kg
- 2,860 yuan ÷ 1,000 kg = 2.86 yuan/kg
Aluminum waste before extrusion incurs costs related to remelting, homogenization, heating, and storage. However, since it hasn’t undergone the extrusion process, it doesn’t affect the loss of finished products. This is a key consideration when evaluating aluminum defects.
In the West, the aluminum extrusion industry has shifted toward reducing the number of extruders while investing more in advanced extrusion lines. This involves using high-cost porous molds to increase the yield of high-quality products per unit time. A new extrusion line can achieve 82–86% efficiency in aluminum rod consumption, leading to larger shipments.
1. The cost of setting up an aluminum extrusion line is significant, and this must be recovered through the sale of high-value aluminum profiles.
2. Since aluminum profiles are the main revenue source, extrusion operating costs are directly tied to them. Therefore, increasing production output is crucial for maximizing profit.
3. Other operational costs and company profits depend on selling aluminum profiles, which often exceed the costs of the extrusion process itself.
Because all costs rely on the sale of quality products, every business decision must focus on improving the shipping rate of aluminum profiles.
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