Evaluation of Cost Effectiveness of Onibode Fire-Clay for Production of High Quality Refractory Bricks

Abstract

In establishing a plant or factory, the cost-benefit analysis is needed to determine the viability for such financial investment on the project. In this paper, the cost establishing a factory of 200,000 bricks per annum capacity, for the production of high quality refractory bricks from locally avail-able raw materials in Nigeria was evaluated. The evaluation was conducted on the virgin refrac-tory material (100%) as well as with varied percentages (10% -40%) of alumina additions. The result of cost benefit analysis indicated that, the project was viable, with the highest cost at N1,203.66 per brick as against N1,800 (at 3 years projections) of the imported brick. The payback period for the capital investment was very short (within two years). The findings will aid investors in decision makings.