How To Start Aluminum Recycling Business

How To Start Aluminum Recycling Business

The aluminum recycling business has some huge potential if done in the right way. Our today post is to tell you about the aluminum recycling process, cost estimation in setting up aluminum recycling plants, and profit margin information in this business. Aluminum is a cylindrical-shaped container used to store foods and beverages.

As we see around us while buying soft drinks like Coke or Pepsi, food items like chocolate milk, ghee, oil, packaged foods, and chemicals definitely an aluminum can are used. A total of 180 billion aluminum cans are produced annually globally. Most of the cans used are made of recycled aluminum and not primary aluminum.

Aluminum waste is considered one of the most valuable wastes in the world. In one report it was said that Americans throw away aluminum cans worth about $1 billion. Aluminum recycling companies in the United States spend about $800 billion per year on recycled aluminum because the recycled aluminum industry is diverse.

Aluminum Recycling Machine

The cost of an aluminum recycling machine ranges from lakhs to crores of rupees. Therefore, while buying machines, it is very important to work very carefully and wisely to avoid fraud. While purchasing the machines, their comparative analysis must be done and after that, the supplier should be selected.
The names of some of the major machines used in this business are as follows:-

  • Compressor: A baler compressor is a hydraulic machine that compresses aluminum. These bins are compressed using a baler into a square-shaped thick and heavy solid containing thousands of cans.
  • Smelter: A smelter is used for smelting aluminum in a smelter. This brings out the pure aluminum while removing the bulk which is the unwanted waste material associated with the aluminum can.
  • Furnace: This is where the aluminum waste is heated to a temperature of 750 °C.
  • Sheet maker: After the aluminum is melted, it is shaped as required, usually, it is drawn into sheets.
  • Aluminum Cans Shaping Machine: Many more machines are needed to shape aluminum cans, polish them, print stickers around cans, clean items to fill them, etc.
  • Other Equipment: There are many other helpful gadgets that you need like an electric generator, a heater to generate heat, to melt aluminum, container, coolant, boiler, etc.

Read More: Low Investment Recycling Business Ways of 2021

Raw Material

To supply the raw materials in its business, you’ll need to work closely with local scrappers, who also pick up aluminum cans sold at relatively high rates compared to other waste such as paper or plastic. For this, you can approach the scrap officers near the dumping ground who can provide you with aluminum-based on your requirement. For this, you need a good amount of investment.

Investment

Investment in this business depends on this business and the land because if you start a big business then you have to invest more and if you start a small business, then less investment has to be made in it and if you have your own land then less money can work in If you buy or rent land, then you have to invest more in it.
There are many types of machines inside it and the rates of all are also different. Investment also depends on them, after that, to start this business at a good level, a machine has to be bought, a building has to be built in which the machine will be installed and to keep the stock, the building for everything, then electricity, water facility, and raw material. A separate investment has to be made for each vehicle.
Capital investment depends upon the resources required, expertise, manpower, technical gadgets, machinery, and miscellaneous items. Based on their location one can calculate the cost of the recycling plant, infrastructure, and space for use of all these. You will have to spend a huge amount on the whole system of making a recycled can. The other investment will come in arranging expertise, technicians, and workers. You can calculate their salary on monthly basis. The next thing is packaging recycled products and transporting them to the market.
Investment: Rs. 30 Lakh to Rs. 1 Crore.

Workers

The requirement of employees in the business is determined by looking at the level of the business because you have to think completely about how big or small you want to keep the business. If you do big business then you will need more people in it, in which everyone’s work will be different. If you start from a small level then you will need fewer people and on the other hand, if you do it on a big level then you will need more people for this. It is clear that for recycling and manufacturing aluminum you will need some experts, engineers, and technicians in addition to workers. It is very important to have all of these at work.

Documents

While starting any business, it is very important to complete the paperwork, in the same way, to start the recycling business, it also includes taking permission from the concerned authorities:-

  • Environmental Authority
  • Recycling Authority
  • Local Municipality
  • Permission From Industrial Authority
  • Registering a Business
  • Register as Taxpayer
  • Water Tax
  • Transportation Fee
  • Packaging Fee
  • Electricity Tax, etc.

Electricity and Water

Wherever you set up recycling plants, there should be a regular electricity supply as lack of it can hamper the production of your recycling plant. Make sure to have a proper supply of clean water for your recycling work. Cleaning waste aluminum cans requires a good amount of water. For this, you also need to take special permission from the water authority as it may use more water than you expect.

Marketing

Marketing is very important for this business because, without it, it will not be easy for you to run the business. You will need to print cards to advertise your business. Along with this, you can supply cans to already running companies and newly opened and opened companies. Once you get to know the companies in the market, the company itself will start placing orders from you.

Profit

This is a business whose demand in the market remains the same throughout the year and the profit margin in this business is also very high. As we all know in today’s time there will be no family in which there is no product or box made of aluminum. Aluminum has reached every home today. Whether it is any beverage or food item or any other product used at home, aluminum has taken its hold in everything. If you are starting a business then you can understand the benefits of this.

Hiren Gami

Hiren Gami

Hiren Gami is Digital Marketer and Blogger at Tech Gami. He has 9 years of experience in the SEO field. He has launched a blog Tech Gami to share and update the latest Technology information in the domains of Upcoming Mobile Phones, Technology News, Games, and Vehicle News as a whole.

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