Investment Analysis For The Establishment Of Spheroidal Graphite Iron Plant In Nigeria

Abstract An investment analysis for the establishment of Spheroidal Graphite Iron SGI plant in Nigeria was conducted to assess the viability of setting up a plant. Spheroidal Graphite Iron outperforms grey cast iron due to possession of the following attributes improved strength ductility toughness and hot work ability with grades guarantying more than 18 elongation or high strength with tensile strength exceeding 825 MPA . The analysis was done for a manufacturing plant with an installed capacity of 300 tonnes of SGI per annum. As part of the methodology a market analysis the required materials equipment and human resource requirements are presented. The financial implication financial and breakeven analyses were carried out. The market analysis substantiates a ready market for SGI and the required total capital investment for the plant is approximately 26835838 million. The estimated annual profit is approximately 268358 29 million. The financial analysis shows that the investment is a profitable venture with a good profitability ratio and rate of return. The payback period for the venture is less than 2 years.