Small To Medium AAC Blocks Manufacturing Business Plan

Is it profitable to open an AAC block manufacturing plant? How long will I get a return from the initial investment? Is there any feasible business plan for starting an AAC block plant? Many new starters in the building material industry are interested in these questions. In this article, we will discuss these most concerned aspects to help intended investors.

How much does it cost to set up an AAC block plant?

Several factors affect the price of setting up an AAC block plant such as the manufacturing process, the capacity of the plant, the equipment selection, the land cost, the raw materials, the labor cost, energy cost, etc. The annual capacity of a medium-scale AAC plant is 50,000 to 300,000 cubic meters. The cost of a small AAC block plant is about 100,000 wanyuan RMB. Here the small scale always refers to the AAC plant with an annual capacity below 50,000 cubic meters.

aac plant cost analysis

The expected profit of an AAC block plant

In terms of the current domestic market environment, the cost of each cubic AAC brick (including labor, electricity, and equipment depreciation) is about 90-120 yuan. The cost of the block varies according to raw material prices, and the selling price (ex-factory price) is between 180-260 yuan. Suppose the annual output is 100,000 cubic meters (300 days a year), the minimum profit is 90 yuan per cubic meter, then the profit is 30,000 yuan a day, and the profit of one year is 9 million yuan.

The business plan for a small to medium AAC block plant

There are several aspects needed to be taken into consideration when planning an AAC block plant. Before investing in the AAC production line, one should do some research. For example, the local raw material supply and the market demand greatly influence the cost and even decide if the business is profitable. If the raw material is short in future manufacturing, the rise of transportation cost is inevitable which leads to lower profit or even causes loss. The market demand is crucial because it decides the sales of end products AAC blocks. Other important aspects include the market capacity, the product life circle, the factory location, the production capacity, the machine selection, and the production process.  

aac blocks manufacturing business plan

Raw material supply

The raw material is an important factor for reducing costs. The raw materials for an AAC plant mainly include fly ash, sand, lime powder, gypsum, etc. Choosing different raw materials or industrial solid waste tailings resources can effectively reduce the cost of raw materials in production. The distance to raw materials is the nearer the better. It is better not to beyond 100 km.

Site selection

The factory can be located in general industrial areas, or places with convenient transportation and superior water supply. The ideal place would be the ones that are near many construction projects including newly built and renovation of old houses. Especially the new development area, where AAC blocks are in large demand.

Land Investment

The land requirement for an AAC block plant varies depending on the production capacity. Take the small to medium-scale production plant for example, below is the required land estimation.

Manufacturing factory area:20m (width)*60-100m (length)*6m (height)

Curing room: 300 m2-700 m2

Total land area: 4000-10000 m2

Energy consumption

It is planned to use a 380V/50HZ power supply for the construction of the aac block plant project, which must meet the power demand of this production line. The available cables can be introduced from trenches or overhead lines. The specific power depends on the actual situation. Below is an example of a small to medium AAC block production line:

Water consumption:50-100 t/d

Electricity: 380V/50HZ

Total Power consumption: 150-300 Kw  

Machine selection

Good technology and equipment can allow customers to obtain better profit margins. Fully automated equipment and high-end and sophisticated cutting saws can increase production and save a lot of labor and time, reduce the operating costs of enterprises, and greatly increase the profit margin of investment in the production of aerated brick equipment.

AAC block machines in a small AAC block plant

The AAC block machines mainly include the jaw crusher, the storage silos, the slurry tank, the pouring mixer, the cutting machine, the tilting table, the autoclaves, etc. The auxiliary equipment mainly includes the elevator, the trolley cart, the mold, the bottom plate, the broilers, the tilting crane, etc.

aac block equipment mold
mold in a small aac block plant
aac block making equipment
main machines for aac block plant

Autoclaved Aerated Concrete Market prospect survey

AAC block is a lightweight and efficient thermal insulation material widely used in the field of construction. As requirements for building energy saving are getting higher, the development prospect of aerated blocks is getting broader.

First of all, the autoclaved aerated concrete block has the characteristics of lightweight and good thermal insulation performance. It is much lighter in density than traditional insulation materials while also retaining heat better. Therefore, the AAC block can effectively reduce the energy consumption of buildings, and improve the energy-saving effect of buildings. Secondly, the construction of the AAC blocks is simple, which can reduce the labor intensity of the construction workers, shorten the construction period and reduce the construction cost. At the same time, the AAC block has good fire resistance, does not produce toxic gases, and is harmless to the environment and human health. In addition, the AAC blocks have broad application prospects. It can also be used to make construction materials such as building templates and insulation boards.

global aac blocks market analysis
The market prospect of autoclaved aerated concrete 2021-2031

In the future, as people have higher requirements for building energy conservation, the market demand for AAC blocks will continue to increase. At the same time, with the continuous advancement of technology and the continuous improvement of production technology, the performance and quality of the AAC blocks will be further improved. Therefore, the development prospect of the AAC blocks is very broad. From the statistics of Allied Market Research, the global AAC blocks and panels market was valued at $19 billion in 2021 and is projected to reach $34.4 billion by 2031, growing at a CAGR of 6.2% from 2022 to 2031.