Furniture factory chairs-tables-doors etc.
Furniture factory chairs-tables-doors etc.
One solid wood furniture factory near my hometown in Italy just filed for bankruptcy due to a rise in taxes, high employee cost ,the euro currency, slowdown of the construction sector etc...
They are selling all their German and Italian made machinery for a fraction of the cost. The factory can produce about 300-500 chairs a day ( or a mix of chairs tables and other wooden furniture).
If i take this opportunity i can buy machinery that new would cost 700.000$ for a bit less than 200.000$.
The price of the final product would be very competitive, the quality very durable and standardized compared to local products.
One of my Chinese costumers already voiced an interest for having a 50% share in the company.
Do you think the Cambodia market can absord an high production factory output?
I am trying to run the numbers as fast as possible, if anyone has any suggestions I warmly welcome it.
They are selling all their German and Italian made machinery for a fraction of the cost. The factory can produce about 300-500 chairs a day ( or a mix of chairs tables and other wooden furniture).
If i take this opportunity i can buy machinery that new would cost 700.000$ for a bit less than 200.000$.
The price of the final product would be very competitive, the quality very durable and standardized compared to local products.
One of my Chinese costumers already voiced an interest for having a 50% share in the company.
Do you think the Cambodia market can absord an high production factory output?
I am trying to run the numbers as fast as possible, if anyone has any suggestions I warmly welcome it.
The price of decent furniture in Cambodia is a never ending frustration. Most khmers I know would go for Western style furniture given the chance, but it's just not available. All they can find is the usual super heavy and cumbersome eponymous large wooden chairs and low tables, to go with the space - wasting indoors "architecture".
I think manufacturing Western style furniture in cambo is a real opportunity given the prohibitive import fees.
I think manufacturing Western style furniture in cambo is a real opportunity given the prohibitive import fees.
- Jacked Camry
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I think there's a local market and it will grow. However, there's probably a reasonable opportunity to tap into the export market too.
Issues I'd be most worried about would be raw material supply due to the ongoing rape of the forests and hungry factories in nearby countries. On the other hand, if you could find a way to get a certified source that's sustainable and turn it into a full production from growth of the trees to the final product, that could gain you significant market share and possible carbon credits. Would be complicated and difficult as hell to deal with that aspect of it though.
Issues I'd be most worried about would be raw material supply due to the ongoing rape of the forests and hungry factories in nearby countries. On the other hand, if you could find a way to get a certified source that's sustainable and turn it into a full production from growth of the trees to the final product, that could gain you significant market share and possible carbon credits. Would be complicated and difficult as hell to deal with that aspect of it though.
Agreed with the timber supply issue - you'd need FSC certification to be able to export to many markets - check on that.
I can't see Cambodia absorbing a continual output of 500 chairs a day.
I can't see Cambodia absorbing a continual output of 500 chairs a day.
About the same issues I was thinking about,
Wood supply/cost,
Finding properly dried wood,
Market size,
Electricity cost ( that should be fine),
Distribution.
As far as the wood supply seems almost easier to import wooden elements from Russia or Slovakia which are already properly dried and steamed rather than going mad using local wood.
About the market size and absorption,
spacing production as: one week chairs one week tables - coffee tables one week beds one week door one week stairs the market could be fine,
of course the export market would be a massive plus since Cambodia has less duties towards many developed countries and soon ASEAN.
On the other hand Vietnam is much cheaper regarding electricity and and easier to export from so the main advantage would be dominating the local market which has no true competitors, the side effect could be causing a lot of the small cottage industries that make furniture now to be quickly out of business.
In my opinion this company in order to be worth existing in Cambodia would need to be profitable on the local market alone and take all export opportunities as a plus since I believe that it will be at a disadvantage against Vietnam unless electricity cost levels up a bit.
Now I will evaluate the cost of local wood if I can find some suitable species, not so heavy and overpriced possibly.
Wood supply/cost,
Finding properly dried wood,
Market size,
Electricity cost ( that should be fine),
Distribution.
As far as the wood supply seems almost easier to import wooden elements from Russia or Slovakia which are already properly dried and steamed rather than going mad using local wood.
About the market size and absorption,
spacing production as: one week chairs one week tables - coffee tables one week beds one week door one week stairs the market could be fine,
of course the export market would be a massive plus since Cambodia has less duties towards many developed countries and soon ASEAN.
On the other hand Vietnam is much cheaper regarding electricity and and easier to export from so the main advantage would be dominating the local market which has no true competitors, the side effect could be causing a lot of the small cottage industries that make furniture now to be quickly out of business.
In my opinion this company in order to be worth existing in Cambodia would need to be profitable on the local market alone and take all export opportunities as a plus since I believe that it will be at a disadvantage against Vietnam unless electricity cost levels up a bit.
Now I will evaluate the cost of local wood if I can find some suitable species, not so heavy and overpriced possibly.
Theres a cabinetmaker in Sihanoukville who seems to make pretty good stuff. Nowadays there is good MDF available although the sheet sizes are all too small and there is laminate and edging available. I would be copying IKEA stuff, its incredibly cheap in Australia and many people like it.
Solid timber all requires drying, although there are big second hand timber yards.
The old bugbear of local labor standards is hard to beat unless one used Vietnamese labor. Some of the new apartment blocks have kitchen cabinets that are a huge leap better than what they were installing even a couple of years ago but I would guess that they are all imported.
Solid timber all requires drying, although there are big second hand timber yards.
The old bugbear of local labor standards is hard to beat unless one used Vietnamese labor. Some of the new apartment blocks have kitchen cabinets that are a huge leap better than what they were installing even a couple of years ago but I would guess that they are all imported.
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Wood supply/cost, - 2
Finding properly dried wood, -1
Market size,- 3
Numbered in order of importance.
One just doesn't see properly dried wood here,certainly not up,to the standards I was taught in materials technology wood classes. However, that mainly applied to temperate climates, perhaps it's easier here in the tropics.
Finding properly dried wood, -1
Market size,- 3
Numbered in order of importance.
One just doesn't see properly dried wood here,certainly not up,to the standards I was taught in materials technology wood classes. However, that mainly applied to temperate climates, perhaps it's easier here in the tropics.
Ken, your other post about solar drying also refer. It is not so easy with solar. It will all depend on the outside humidity and time of the year. You should be able to dry timber quicker in the hot climate areas, but getting rid of the free water is the difficult part. Getting it down from 28% moisture content to say 11% or lower is the easy part.
To run the extraction fans for long periods due to the slower solar drying process may be more costly than conventional heated chamber kilns. And it is as easy to create defects like honeycombing with a solar kiln as it is with high temperature kilns.
To run the extraction fans for long periods due to the slower solar drying process may be more costly than conventional heated chamber kilns. And it is as easy to create defects like honeycombing with a solar kiln as it is with high temperature kilns.
For wood prices and supply thanks to my local relatives now I am in a quite good situation. Regarding dryness I should be fine too, now I am waiting for the testing machine to arrive.
The project is not green lighted yet but I have available
Low cost hardwood.
Properly dried wood (to be confirmed)
A couple of hectares of land 1hour drive to PP
High quality machine for a low price
Chinese investor
Now I am making sure that the electrical line can support the factory and figure out what will be my electricity bill.
Regarding making IKEA like products.... That is generally plywood products (completely different factory setup) and I think its easier to import them them make them here since they are designed to be easy to transport.
About the solar klins I am not so confident.
i would rather buy already dried wood and not having to keep a large deposit which people will steal stuff from.
The project is not green lighted yet but I have available
Low cost hardwood.
Properly dried wood (to be confirmed)
A couple of hectares of land 1hour drive to PP
High quality machine for a low price
Chinese investor
Now I am making sure that the electrical line can support the factory and figure out what will be my electricity bill.
Regarding making IKEA like products.... That is generally plywood products (completely different factory setup) and I think its easier to import them them make them here since they are designed to be easy to transport.
About the solar klins I am not so confident.
i would rather buy already dried wood and not having to keep a large deposit which people will steal stuff from.
A board shop has just appeared on my Facebook page. Number 1371 on St 271 near the Savanna. They have photos of the laminated rubber wood boards exactly like mine, 25 mm thick by 600mm wide by 2200 long. And they have other board as well, if they have the very green MDF then that is really water resistant.
My tops are completely inert in the same climate as Cambodia, rubber wood is good stuff.
My tops are completely inert in the same climate as Cambodia, rubber wood is good stuff.
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Hi Jackrossi
No need to play Ikea-style. You would need a very specific set of machines for finishing purposes, a good-quality stable mdf supplier, and it's tough to compete with China, Vietnam, even Indonesia. The margins are low, and absorbing the machinery cost is a long process. Ikea is coming to south asia anyway.
As mentionned above, the local furniture style is a no-no (crazy amounts of wood, not so great style, carving a-go-go), but modern collections with western desings, mixing wood / metal / plywood would be safer to produce and sale inside the country. Outside the country, well it depends on which country. As far as i experienced, europe is not as healthy as before, but if you have some customers already, then let's go !
I just sent you a message already, let's talk about this.
No need to play Ikea-style. You would need a very specific set of machines for finishing purposes, a good-quality stable mdf supplier, and it's tough to compete with China, Vietnam, even Indonesia. The margins are low, and absorbing the machinery cost is a long process. Ikea is coming to south asia anyway.
As mentionned above, the local furniture style is a no-no (crazy amounts of wood, not so great style, carving a-go-go), but modern collections with western desings, mixing wood / metal / plywood would be safer to produce and sale inside the country. Outside the country, well it depends on which country. As far as i experienced, europe is not as healthy as before, but if you have some customers already, then let's go !
I just sent you a message already, let's talk about this.
I have been doing lot of survey and observation. The trend is people lifestyle has changed to Western. More and more people are interested in Western-styled furniture.
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