Replay Plastics

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Plastics Recycling Business Plan

Strategy and Implementation Summary

Replay Plastics will utilize its strong industry-wide relationships to obtain significant contracts for its production. Some business will be obtained directly by Management, while some amount of product will be sold by sales agents well known to the Company who have proven their effectiveness.

These industry-wide relationships will also provide the Company the ability to secure contracts for the supply of its raw material at competitive pricing.

5.1 Value Proposition

In a vertically integrated environment, Replay will apply state-of-the-art recycling and extrusion technology managed by decades of industry specific expertise to create a competitive advantage for its clients. These processes will produce clean, cost-efficient, recycled raw material for manufacturers of thermoform, laminate and other high value-added products, and high strength packaging strapping for shippers of large products and pallets, thereby reducing costs and creating a clear pricing edge among their competitors.

5.2 Competitive Edge

Replay Plastics' competitive edge rests with its proximity to its target markets, as well as the industry knowledge, reputation and contacts of its senior management. Their many years of direct experience have led them to identify this unique opportunity and put together the technology and sources to take advantage of it. Their reputation in the specific market segment will result in the achievement of long-term commitments for our production.

5.3 Marketing Strategy

The Company has chosen to focus on the production of plastic packaging materials from recycled post-consumer beverage bottles. Because of the industry experience and expertise of the management, we have identified a significant available market in the western United States. All of our initial marketing strategy will be to secure contracts in that segment, and after reaching full planned capacity, look to grow in concert with that segment and related markets. We see little need at present for further market research and development, and will focus on continually updating our production technology in an effort to remain in the forefront of our chosen marketplace.

5.4 Sales Strategy

Because of the unique extensive experience and reputation of our Management in the Company's chosen industry segment, we are able to identify all of the potential customers for each of the products we will produce in our facility. While most of the production of flake is ultimately intended to be used internally, we are confident that any developed surplus will be sold immediately.

All of the production of the initial facility is committed for, and should there be any capacity not consumed by these commitments, once again we are confident that the contacts of our senior management will allow for the rapid sale of any such capacity.

If the Company grows faster than its prime customer base, additional capacity may be developed. Mr. Braddock's many years of sales and sales development will be utilized to identify additional customers and/or sales agents currently servicing the Company's target markets.

To market the products, the Company will use a number of sales agents/brokers well known to the founders from business transactions over more than 10 years. All of these seasoned veterans have a customer base of their own, having developed successful relationships with their clientele over the years. Their customer base is currently demanding product so they can expand upon their current base. Of course, they will expand that to new customers when product is available from Replay. Those agents are located in:

  • Jacksonville, Florida
  • Houston, Texas
  • Chicago, Illinois
  • Louisville, Kentucky
  • Los Angeles, California
  • Vancouver, British Columbia

As stated, Ben Braddock, himself, is a strong marketing individual. Over his 30 years of experience in the packaging and converting industry he has developed relationships with a number of clients that are buyers of packaging materials.  He has consulted to many and has been personally responsible for sourcing raw materials and converted sheet for customers in this industry.

Custom formers, extruders, laminators, and end user markets will be called upon by Ben and the sales agent team to promote and generate demand from those that buy and use RPET packaging materials.

5.4.1 Sales Forecast

The sales forecast is based on the assumption that we will sell all of the highest value extruded products that we can produce. In addition, it is expected that there will be amounts of refined flake surplus to our extrusion capacity. This flake will be sold to other manufacturing companies. There is a continuing strong demand for flake and extruded products made from recycled PET.

Cost of raw materials includes 24% allowance for price variation and 15% non-recoverable waste.

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Unit Sales
Recycled Flake PET 20,533,600 12,833,900 0 0 0
Extruded Roll Stock Sheet 8,341,400 28,874,600 30,800,000 30,800,000 30,800,000
Extruded Strapping 0 4,491,500 15,400,000 15,400,000 15,400,000
Total Unit Sales 28,875,000 46,200,000 46,200,000 46,200,000 46,200,000
Unit Prices Year 1 Year 2 Year 3 Year 4 Year 5
Recycled Flake PET $0.45 $0.47 $0.50 $0.52 $0.55
Extruded Roll Stock Sheet $0.70 $0.74 $0.77 $0.81 $0.85
Extruded Strapping $0.00 $0.95 $1.00 $1.05 $1.10
Recycled Flake PET $9,240,120 $6,064,018 $0 $0 $0
Extruded Roll Stock Sheet $5,838,980 $21,222,831 $23,769,900 $24,958,395 $26,206,315
Extruded Strapping $0 $4,266,925 $15,400,000 $16,170,000 $16,940,000
Total Sales $15,079,100 $31,553,774 $39,169,900 $41,128,395 $43,146,315
Direct Unit Costs Year 1 Year 2 Year 3 Year 4 Year 5
Recycled Flake PET $0.27 $0.28 $0.29 $0.31 $0.32
Extruded Roll Stock Sheet $0.27 $0.28 $0.29 $0.31 $0.32
Extruded Strapping $0.00 $0.28 $0.30 $0.31 $0.33
Direct Cost of Sales
Recycled Flake PET $5,441,404 $3,571,033 $0 $0 $0
Extruded Roll Stock Sheet $2,210,471 $8,034,357 $8,998,605 $9,448,535 $9,920,962
Extruded Strapping $0 $1,257,620 $4,620,000 $4,774,000 $5,082,000
Subtotal Direct Cost of Sales $7,651,875 $12,863,010 $13,618,605 $14,222,535 $15,002,962

5.5 Milestones

Because the Company is a start-up, our milestones will surround the establishment of continuing facilities, confirmation of sourcing and sales contracts, equipment acquisition and installation, staffing and training, and initiating production.

Milestone Start Date End Date Budget Manager Department
Order Equipment 1/2/2005 1/31/2005 n/a Senior Mgmnt n/a
Secure Location 1/2/2005 1/31/2005 n/a Senior Mgmnt n/a
Secure Orders/Contracts 1/2/2005 1/31/2005 n/a Senior Mgmnt n/a
Site Preparation 2/1/2005 2/25/2005 n/a Senior Mgmnt n/a
Hire Plant Manager 2/28/2005 3/15/2005 n/a Senior Mgmnt n/a
Receive Equipment 2/28/2005 3/31/2005 n/a Senior Mgmnt n/a
Hire & Train Skilled Labor 4/15/2005 4/30/2005 n/a Senior Mgmnt n/a
Begin Production 5/1/2005 5/1/2005 $0 Senior Mgmnt Department
Hire & Train Unskilled Labor 4/30/2005 5/15/2005 n/a Senior Mgmnt n/a
Install Equipment 4/1/2005 4/30/2005 n/a Senior Mgmnt n/a
Totals $0

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