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The Company :
Location of the Plant
The project is located in Abou Homus _ Damanhour, 60 KM far from Alexandria city, this location has been selected to be in the middle of Delta to collect raw materials from different cities and not to concentrate the supply from one City, moreover the factory is considered close to the port of Alex., Damietta & Port said that are considered the main ports in Egypt as well as the cheap labor needed for the sort of waste plastic.
The project has been established on an area of around 1400 m2 including the following structures:
1- Factory of two floors of a total area of 1000 m2 (500 m2 each floor);
- First floor: Washing, crashing, melting & production units;
- Second floor: storage area for raw materials.
2- Building of two floors of a total area of 500 250 m2 (250 m2 each floor); villa for the owners.
3- Building of two floors of a total area of 250 m2 (125 m2 each floor);
- First floor: Warehouse of finished products;
- Second floor: Administration offices;
4- Water treatment station.
DODY PLAST is currently managed by Mr. Ahmed El Zarka who has an experience of almost 15 years in the petrochemicals industry. Mr. Zarka worked for Inspecta group, a leading provider of inspection, testing and certification services in the petroleum sector, from 1994-2000. He joined Alex Specialized Petroleum Products Company (ASPEC) in 2000 as the Marketing Manager, where he has developed a network of contacts and operational experiences.
Mr. El Zarka is a board member of the Egyptian Association for the producers and exporters of plastics. He is also a member of the plastic sector chamber at the Federation of Egyptian Industries (FEI).
Company name : Dody Plast for Plastic Industries Co,
Date of registration : 12/06/2005
Registered Capital : 11168000 EGP
Issued Capital : 1116800 EGP
Ownership & Shareholders :
1- Mohamed Adel Mohamed El Zarka
2- Ahmed Mohamed Adel El Zarka
3- Mohamed Mohamed Adel El Zarka
4- Mervat Mohamed Adel El Zarka
5- Hoda Mohamed Adel El Zarka
Address : 28 Abd Elkader Attia st.,
Saba Basha – Alexandria - Egypt |
Pricing Strategy
During the last year Dody Plast has tested the market by manufacturing through other factories, bearing the costs of utilizing preliminary machines. This helped the company to understand the obstacles it will have to face if developed markets such as the European market shall be targeted.
The costs of production in Egypt are considered relatively low compared to other countries of the region. Egypt's geographical location next to Europe allows Dody Plast to export with very competitive prices.
The Free trades agreement between Egypt and EU provides Dody Plast with an additional advantage, as it does not have to pay any customs on its exports to Europe. This boosts the volume of export each year.
Following its strategic planning to penetrate into the European Market, the Company has decided to acquire High level technologies in order to improve the products' quality.
Higher quality will enable Dody Plast to fully utilize its competitive advantage of the low costs of production to increase its sales in Europe and generate higher profit margins (around 20% more). The technology-transfer represents a first step of the company's plan in acquiring the required know-how to improve the production efficiency.
The Market
- Total market and market trend
There is a continous increase in the global market demand on plastic materials. The ad hoc report "The compelling facts about plastics" published spring 2007 by Plastics Europe ( The Association of Plastics manufacturers) shows the following trends:
To respond to such shifts in the demand, plastic production has increased significantly all over the world :
In plastics processing the row material costs account for up to 40 percent of industry turnover. Since 2000, the price of these material has increased regularly by 30 to 60 percent. Despite the sharp increase in these costs, plastics converters were unable to increase prices significantly. This fact, combined with the wide spread awareness of the importance of recycling as an efficient economical and environmental concern, paved the way for plastic recycled products.
Specially in Europe, despite a 3% year growth over the past decade for both plastics demand and post consumer waste, the quantity going to landfill has continued to decline by about 2% year.
Local Competition
The recycle business in Egypt is still a green field as there are few numbers of well modernized factories that involved in this sector (not exceeding 4); most of the existing factories are primary with handmade local machinery with very low quality. This is the main reason for not utilizing the total waste of plastic that reach from 700000 – 800000 MT as of 2005, while the recycled plastic does not exceed 30%.
Despite the fact that Dody plast is considered new established company. However, it succeeded to establish an excellent relationship with many customers in Europe such as : France, Israel, Holland, Italy, Spain and Greece.
The following tables show the row materials quantity for every type of product:
PS |
PP |
LDPE |
HDPE |
Year |
270 |
270 |
270 |
270 |
1 |
540 |
540 |
540 |
540 |
2 |
720 |
720 |
720 |
720 |
3 |
900 |
900 |
900 |
900 |
4 |
900 |
900 |
900 |
900 |
5 |
900 |
900 |
900 |
900 |
6 |
900 |
900 |
900 |
900 |
7 |
900 |
900 |
900 |
900 |
8 |
900 |
900 |
900 |
900 |
9 |
900 |
900 |
900 |
900 |
10 |
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