Feasibility study for cast metals factory

Prepared by Khalil F. Shehadeh

Scope of feasibility:
Operations and financial feasibility for casting
foundry for brass, bronze and aluminum casting
products
Purpose of feasibility study:

The purpose of this feasibility study is study the operational and financial
feasibility of establishing foundry that could produce aluminum and bronze
castings, this foundry could also produce castings for ferrous and non-
ferrous metals like steel, stainless steel, brass, zinc and a lot of other metals.

The request by Mr. Samer Nurridin from M/s Alumco UAE to prepare this
feasibility due to the need for this plant to execute the castings for
presidential palace to achieve the desirable quality of casting desired with
the budget available.

This plant will produce those castings using two production methodologies
which is gravity die casting and investment casting.

Investment casting process (lost Wax) is the only right process to produce
precise casting with intricate designs for aluminum, brass, bronze and
precious metals and the presidential palace that contains a huge amount of
such castings that could be done only on this process.

After establishing such factory it will be the first type of foundry that using
this methodology and opens a lot of opportunities to lead the market in
whole GCC and Middle East to produce precise castings.

Also the setup will be able to produce castings with different methodologies
like sand casting and gravity die casting.

Also this setup will have the right infrastructure for future development and
expansions like high pressure casting using cold chamber, vacuum casting
and centrifugal casting.

What is investment casting process:

Investment casting is near net shape made by the lost wax, the process
features the cast in details, tight tolerances and excellent surface finish
getting castings with 0.005 inch/inch and such tolerance only could be
achieved by this methodology.

Castings sizes could be achieved by this method starting from few grams
ending up to 90 kg casting. Giving super finish so that it could be treated by
coating as cast finish.
Process description:

This process initially will take pretty long time to produce the first casting
then once a production line is established daily produced castings will be
finished to match the production schedule for the project.

Step 1: (wax pattern & wax tree)

After procuring the desired
design a blend of industrial
produce wax pattern, this wax
gates and risers which is also
wax pattern.
aluminum mold that contains the desirable
wax will be injected to aluminum mold to
pattern will be assembled to wax tree with
could be produced with the same method of

Using a hot knife and proper tolling the wax tree be assembled to be ready
for the next step.

Step 2: (ceramic shell building)

The produced wax tree in the previous step will be dipped in in-house
prepared slurry of refractory material which called the primary coat to take
the shape of the wax tree, then it will be covered with a specific type of
silica sand and left for 12 hours till its dried completely.

This slurry coat and sand shell will be repeated four to five times till a
desirable shell thickness build between 6 to 10 mm depending on the size of
casting.

Step 3: (de-waxing)

the wax tree covered by ceramic shell will be placed into burnout furnace to
melt the wax completely and the ceramic mold will remain the same taking
the exact shape of the wax.

The empty ceramic shell will be washed with a solution of chemical and
distilled water.

Step 4: (shell heating)

the empty ceramic shell will be heated up to 850 C degree to be stronger

and improve the fluidity of the poured metal.

Then it will be placed into tray full of sand to hold it.

Step 5: (casting)

The molten metal will be poured in the hot ceramic shell and left till
solidification then the ceramic shell will be broken to get the metal casting.

Step 6: (finishing)

The cast piece will be ready for further fabrication first of all the gates and
risers will be cut, grinding, sandblasting, and desirable finish of coating will
be applied to the casting.

Products of this type of business:

This plant could produce different types of products which could be

summarized into those categories:

1) Industrial applications:

A lot of items could be produced within this range of products, low

tolerance precise castings make this range of products easy to produce like
valves, pump covers, gauges, and intricate spare parts.

2) Architectural products:

This plant could produce easily all architectural castings since the purpose of
this plant is to achieve the castings for presidential palace like machrabiyya,
screens, fences, balustrades and a lot of other architectural items.

3) Artistic products:

Sculptures, decorative items, souvenirs, medals and a lot of artistic luxury

items could be produce in this plant also with plenty of desirable finishes
could be produced and GCC market considered as excellent market for
luxury items.

4) Lighting:

This facility also (after few and low cost development) could produce light
poles up to 17 meter high, internal and external lighting, chandeliers,
lighting bollards for landscaping purposes and a lot of brilliant ideas could be
produced also in terms of lighting field.
Detailed process for production of presidential palace castings:

Items to be produced for the project:

1) Bronze castings:
 Bronze machrabiyya.
 Bronze handles
 Bronze decorative feature.
 Bronze decorative profile.
2) Aluminum castings:
 Aluminum machrbiyya.
 Aluminum handle.
 Aluminum decorative feature.
 Aluminum decorative profile.
3) Production plan for bronze items:
A) Bronze machrabiyya:

The bronze machrabiyya will be divided into 6 parts only one of them are
typical that means we need five aluminum dies to produce the wax pattern
to complete the previously explained process using investment casting, after
the casting process all parts will be assembled using brazing and soldering
process using soldering rods from the same type of material used in the
casting to keep the same finish without leaving any stains or marks.

B) Bronze handles:

One aluminum mold needed so it will be casted in one piece, three or four
wax patterns of the same handle will be assembled in one wax tree and
casted in one time to reduce production time of this item, and no need of
soldering process.

C) Bronze decorative feature:

Decorative feature at the top of the door consists of two parts, decorative
tile of size 150x140 mm which will be casted separately by producing around
8 pieces per wax tree, and the separator blocks which will could be
produced easily and then assembled to get desirable sizes as per the width
of the door.
 D) Bronze decorative profile:

1:1 scale template will be done for this item to distinguish the proper areas
to be divided to find typicality as much as we can, approximately seven to
nine pieces will be done three of them are typical so the need of four to five
aluminum molds is mandatory, after the casting using investment casting
method also brazing and soldering will be done to get required final product.

4) Production plan for aluminum items:

A) Aluminum machrabiyya:

this product will be produced using gravity die casting by preparing two mild
steel dies and will assembled by direct aluminum welding then grinding ,
and desirable finish will be applied directly.

B) Aluminum handle:

Aluminum handle will be done by investment casting with the same

methodology of bronze handle using the same aluminum mold to produce
the wax pattern.

C) Aluminum decorative feature:

In this item only the 150x140 tile will be produced using gravity die casting
and it will be assembled to extrusion separator using aluminum welding.

D) Decorative profile:

Also what is applicable to bronze decorative profile will applied to the

aluminum decorative profile also.
 Production flow chart: (investment casting)

Assemble
Prepare aluminum Melt the wax using wax
wax tree
mold injection machine

Produce wax gates and

risers

Blend refractory material Prepare primary slurry Dip wax tree into
coat slurry tank

Blend ceramic shell Prepare secondary slurry Prepare secondary slurry

mixture coat coat

Leave ceramic material till

its dries for 12 hours

Leave ceramic material till Dip wax tree into

its dries for 12 hours secondary slurry

Yes No
Place ceramic shell into Build 6 mm
burnout furnace for de-waxing ceramic shell

Clean ceramic shell with Heat the ceramic mold into Pour the molten metal into
distilled water and chemicals the furnace up to 850 degrees the hot ceramic mold
Plant, logistics and production support:

1) Plant for production

The plant needed to produce the castings for this project must has a specific characteristics ,
first of all the desirable area is around 13,000-15,000 square foot is considered proper area to
start the plant with. The setup of the plant will be according to the foundry concept and the
type of furnaces chosen for casting process which will be explained extensively later in this
feasibility study.

1) Wax pattern production area:

This area will be around 1000 Square foot and it’s supposed to be air conditioned and keeping
the room temperature at 27 degrees maximum.

Wax injection machine is needed, also assembly table to assemble the wax tree , holding racks
to hang the finished wax trees to be covered with the ceramic mixture.

2) Ceramic mold area:

This area will be also air conditioned needs around 2000 square foot will contain slurry mixers
and rain sanders to build the ceramic mold over the wax patterns and trees.

Also good quantities of holding racks and industrial fans needed to dry good quantities of
ceramic shells.

3) Cold store area :

Proper cold store area to keep the stock of wax , refractory binders and sand to keep it in good
condition, the desirable area is 750 square foot.

4) Casting area:

The casting area will include burnout furnace, melting furnace, and sand trays to place the hot
ceramic molds. Safety requirements for this area needed depend on the type of furnaces used.

5) Fabrication area:

This area needs simple fabrication machines and tools like circular saw to cut the gates and
risers, shake out vibrator and hummers to break.
Process Machines Logistics Materials Comments
Wax production Wax injection Aluminum mold, Wax blend made This area must
machine mold assembly of paraffin wax, be air
table, wax natural wax, conditioned
assembly table, organic filler,
hot knives, petroleum gel
holding racks and water
Ceramic shell Slurry mixers (2 Movable trolleys, Refractory silica This area must
no.), rain sanders holding racks, binder, be air
(2 no.) and industrial refractory grain conditioned also
fans with dryers sand , zircon
flour and sand
De-waxing Burnout furnace Trolleys , special N/A Sand trays to
facility with proper designed trays keep ceramic
dimensions for for wax mold after
ceramic shells reclamation heating
Shell cleaning Di ionized water Tanks full of Chemicals and We can buy
and heating unit chemicals and distilled water ready distilled
distilled water water instead
Casting Melting furnace Crucibles , fluxes, Molten metal Decision will be
and holding gas or diesel procured as done as per the
furnaces infrastructure ingots desirable infra
structure
Fabrication Normal cutting Normal hand Sanding papers , Fabrication shop
machines and tools, grinders, grinding discs, depends of the
circular saw and welding machine gas for welding size of
small and assembly operations
sandblasting tables
Finishing and Torches , Tables , brushes Chemicals Depend on type
patina of patinas

The above table shows the all the machines needed , logistics for the factory and indirect
material needed and consumed to get high class castings that will be suitable to be presented in
presidential palace project.

Later on and in the financial section of the feasibility study we will show the cost occurred for
Capital expenditure and the running cost forecast for the whole operation for this casting plant.
Casting methodology and furnaces:

There are three types of casting techniques to melt the metal using gas, electricity and diesel
and each technique has its own advantages and disadvantages and restrictions, the table below
shows the comparison among them.

Method Furnace Furnace Setup Melting Setup Melting Comments

type cost cost cost time time
Gas Melting 600,000 350,000 0.75 AED 3 120 min Only used
furnace AED AED per KG months for
and aluminum
holding not
furnace applicable
on bronze
Diesel Melting 300,000 150,000 2.5 AED 2 75 min Needs
furnace AED AED per KG months ventilated
area ,
dangerous
and
underground
furnace
Electrical Induction 700,000 100,000 1.9 AED 3 45 min Needs high
furnace AED AED per kg months power
availability

Type of melting techniques depends on the speed of getting approval, plant characteristics
which availability of power supply, ventilation, cost of infrastructure and a lot of other factors
that will be involved in taking the decision of which type of melting technique to use in the
plant.
Financial feasibility for casting plant

1) Capital expenditure:

The capital needed to buy all machines and plant setup is detailed in the table below also
comparing among different types of machines:

Machine European brand price Chinese brand price Specifications

Furnace 750,000 650,000 200 kg capacity
Wax injection 400,000 180,000 Four pillar wax
machine injection machine
with thermostat and
viscosity
measurement
Slurry mixer x2 65,000 35,000 Depend on the size of
tank
Rain sander x2 125,000 70,000 Depends on the size
of the opening
Burnout furnace 300,000 195,000 Depend on the size
Total Machines 1,640,000 1,130,000 Keep 5% (+/-)

Production support and facilities

Item Cost Comments

Assembly tables 70,000 Depend on usage in different
plant facilities
Tools 200,000 For all sections including
casting and fabrication
Air conditions 300,000 For wax and slurry rooms
Shed infrastructure 150,000 For gas pipes and building
cooled rooms
Aluminum and steel molds 220,000 For preparing wax trees
Trays and trolleys 85,000 For casting area
Welding machines 45,000 Aluminum and bronze
Total 1,070,000 Keep 5% (+/-)

Establishing fees:

Item Cost Comments

Trade license 40,000 For one year
Labors visas 127,000 For 15 labors
Total 167,000
Overheads for one year:

Item Cost Comment

Shed rent 400,000 For one year
Electricity 60,000 For one year
Labors salaries 340,000 For one year including tickets
and paid leave
Telecom 15,000 For one year
Labors accommodation 125,000 For one year
Transportations 60,000 For one year
Contingencies 70,000 As spare cash on OH
Total 1,070,000 Keep 5% (+/-)

Material consumption and production OH :

Item Quantities Cost Comments

Bronze 35 tons 1,400,000 As per previous QS
Aluminum 18 tons 180,000 As per previous QS
Ceramic mold sand 8 tons 280,000
and mixtures
Wax 2 tons 50,000
Diesel consumption 2.5 per KG 150,000
Gas consumption 3000 liter 80,000
Other production Lump sum 95,000 Welding rods,
consumables grinding discs…etc
Total 2,235,000 Keep 5% (+/-)

Total project cost:

Item Budgeted cost

Machines 1,640,000 AED
Production supplies and logistics 1,070,000 AED
Establishing Fees 167,000 AED
Overheads 1,070,000 AED
Materials 2,235,000 AED
Total Project Cost 6,235,000 AED