Replay Plastics

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Plastics Recycling Business Plan

Management Summary

The three founders form the senior management group. Several qualified candidates have been identified for the position of plant manager. The balance of the employees will be hired and trained during the equipment purchase and installation phase (first five months after funding). Because the sales management function will be the responsibility of Ben Braddock, with projected use of familiar sales agents, there are no plans for additional inside sales people or managers.

Ben Braddock and Sam McGuire have agreed to remain with the Company for the foreseeable future. In addition to their respective duties, they will each become totally familiar with all aspects of Senior Management, and be in a position to take over for each other should the need arise.

Carl Smith has agreed to remain with the Company for a minimum of two years, and will assume the responsibility of locating and training a replacement before the end of his employment.

6.1 Organizational Structure

The Organizational Structure of Replay Plastics is planned to be a simple and traditional one. All recycling and manufacturing operations will report to the COO. All administrative and finance functions will report to the CFO. Both the COO and CFO will report to the CEO, who will also have the responsibility for Sales and Marketing.

6.2 Management Team

Ben Braddock, President and CEO, has a 30-year history of experience encompassing all aspects of Polymer Raw Material, Plastic Conversion Methods, and Venture Development. He founded Company C, a multi-cavity plastic injection molder container facility, and Company D, a solid phase pressure forming polypropylene (PP) food container facility. He also assisted in the launch of five plastic converting manufacturing plants.

For the last fifteen years Ben has been an independent consultant in the plastics industry. His clients have included [proprietary and confidential information removed].

Sam McGuire, Executive VP and COO, is a graduate engineer with over 20 years experience in the post-consumer plastics recycling industry and is the inventor of the primary recycling technology used in the process for this project. He has received a patent for his recycling technologies and has been directly involved in over twenty-five major post consumer plastics recycling  projects. Sam has played a major role in the design and manufacture of specific recycling equipment as well as playing a key management role in the design, construction, installation, commissioning and operation of several independent recycling businesses.

In 1998, Sam sold his interests in a medical waste treatment and plastics recycling business to a public company (Company A) based in Chicago. Since that time he has served as Vice President, International Business Development and Engineering for this Company. His primary responsibilities over the past five years have included: the rollout of the corporate business model to international countries; the licensing of intellectual property to joint venture companies; managing the design and construction of medical waste treatment and plastics recycling facilities and continuing business and technical support to the resulting joint venture businesses throughout the world.

In the past five years, Sam has successfully completed projects in Brazil, Argentina, South Africa, Japan and Australia totaling over $100 Million in investment.

Carl R. Smith, CFO, has over 30 years of investment, merchant banking and management experience. He has assisted in raising over $500 million and served as board member and/or officer in over 40 public and private companies.

Carl is the former CEO of E Corporation, Ltd.,  a company manufacturing plastic injection molded products. Prior to 1993 he was a partner in two independent investment banking firms, Company F and Company G. During his time at Company G, more than $450 million was raised for client companies, and the assets grew to $50 million. Prior to forming Company G, Carl was a principal and manager of several operating companies in industries such as plastics, mining and oil and gas exploration.

6.3 Personnel Plan

The Company expects to have a head count of 53 (6 part-time) by the end of year one, 59 (9 part-time) in year two, and 73 (15 part-time) in year three through five at full capacity. We have budgeted for labor rates ranging from $10 per hour for  unskilled labor to $18 per hour for machine operators and Maintenance Technicians. We expect to pay $20 per hour to supervisors. We have also included 30% burden for benefits and employee costs, as well as a 25% bonus potential for all plant employees.

Personnel Plan
Year 1 Year 2 Year 3 Year 4 Year 5
Production Personnel
Shift Supervisor $129,169 $210,000 $220,500 $231,525 $243,101
Maintainence Techs $116,664 $183,750 $192,938 $202,585 $212,714
Skilled Recycle Plant Labor $350,000 $551,250 $578,813 $607,754 $638,141
Unskilled Recycle Plant Labor $164,066 $295,513 $310,078 $325,582 $341,861
Extruder Operator (full time) $87,504 $206,719 $289,406 $303,876 $319,070
Extruder Operator (part time) $25,522 $68,906 $96,469 $101,292 $106,357
Production Assistant (full time) $62,504 $147,656 $206,719 $217,055 $227,908
Production Assistant (part time) $18,228 $49,219 $68,906 $72,351 $75,969
Name or Title or Group $0 $0 $0 $0 $0
Subtotal $953,657 $1,713,013 $1,963,829 $2,062,020 $2,165,121
Sales and Marketing Personnel
commission-basis - see P&L $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0
General and Administrative Personnel
President $72,000 $110,000 $121,000 $133,100 $146,410
Vice Pres COO $67,200 $100,000 $110,000 $121,000 $133,100
CFO $67,200 $100,000 $110,000 $121,000 $133,100
Plant Manager $63,000 $88,200 $92,610 $97,241 $102,103
Accountant $29,200 $45,938 $48,235 $50,647 $53,179
Clerk $20,800 $32,813 $34,454 $36,176 $37,985
Clerk $15,600 $32,813 $34,454 $36,176 $37,985
Clerk $0 $32,813 $34,454 $36,176 $37,985
Shipper Receiver $27,200 $42,840 $44,982 $47,231 $49,593
Subtotal $362,200 $585,417 $630,189 $678,747 $731,440
Other Personnel
Name or title $0 $0 $0 $0 $0
Name or title $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0
Total People 51 57 69 69 69
Total Payroll $1,315,857 $2,298,430 $2,594,018 $2,740,767 $2,896,561