6 Recycled Paper PDF

ABSTRACT
Paper recycling is yet to be fully developed in
T&T. There is, however, demand for a cost
effective packaging option for agricultural
produce and food. Crates and cartons from
recycled paper and bio-based material can fill
this void. This type of packaging can easily be
MANUFACTURING produced from banana pseudo-stems and other
bio-based material together with imported paper
PROFILE 6: Recycled pulp and paper collected from offices and
businesses. It presents a green alternative to the
Paper and Bio-based waste ending up in the landfills while making a
useful product that is critical for preventing the

Products spoilage and rotting of fruits and vegetables
delivered to wholesale and retail markets.

The Development of Project Profiles for the
Manufacturing Sector of T&T ENGINEERING INSTITUTE 2016
The research contained within this document was commissioned by InvesTT Limited and conducted by the
UWI, St. Augustine Campus
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Manufacturing Profile 6: Recycled Paper and Bio-Based Products
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Table of Contents
List of Table ............................................................................................................................ iv
List of Figures .......................................................................................................................... v
1 Description of the Opportunity ............................................................................................. 1
1.1 Summary ........................................................................................................................ 1
1.2 Product Mix ................................................................................................................... 2
1.3 Description of Activities ................................................................................................ 3
2 Industry Overview ................................................................................................................ 4
2.1 Industry Description ...................................................................................................... 4
2.2 Incentives ....................................................................................................................... 4
3 Stakeholder Analysis ............................................................................................................ 6
3.1 Stakeholder Identification .............................................................................................. 6
3.2 Stakeholder Analysis ..................................................................................................... 7
4 Environmental Scan .............................................................................................................. 9
4.1 External Analysis ........................................................................................................... 9
4.2 Internal Analysis .......................................................................................................... 12
5 Sub-sector Assessment ....................................................................................................... 14
6 Identification of Value Added Services .............................................................................. 17
6.1 Supply chain issues ...................................................................................................... 18
7 Financial Analysis .............................................................................................................. 20

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7.1 Infrastructure................................................................................................................ 20
7.2 Annual Utilities Usage ................................................................................................. 20
7.3 Salaries ......................................................................................................................... 21
7.4 Legal/ Statutory Fees ................................................................................................... 21
7.5 Operational Costs......................................................................................................... 22
7.6 Equipment .................................................................................................................... 22
7.7 Financial Analysis ....................................................................................................... 23
8 Human Resources ............................................................................................................... 25
8.1 Organisation Chart ....................................................................................................... 25
8.2 Job Descriptions for Key Positions.............................................................................. 26
8.3 Labour availability ....................................................................................................... 28
9 Location .............................................................................................................................. 31
10 List of Potential Investors and Partners ............................................................................ 33
11 Concluding Remarks ........................................................................................................ 36
12 References......................................................................................................................... 37
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List of Table
Table 1: Investment Summary ................................................................................................. 2
Table 2: Product Mix ............................................................................................................... 2
Table 3: Stakeholder Categorisation for the Recycled Paper Packaging ................................ 7
Table 4: PESTLE Analysis for the Recycled Paper Packaging Industry ................................ 9
Table 5: Competitive Issues in the Recycled Paper Packaging Industry............................... 11
Table 6: SWOT Analysis Recycled Paper and Bio-Based Products ..................................... 12
Table 7: Sub-sector Assessment of Recycled Paper Packaging ............................................ 14
Table 8: Infrastructure Costs ................................................................................................. 20
Table 9: Annual Utilities Summary ....................................................................................... 20
Table 10: Summary of Annual Salaries ................................................................................. 21
Table 11: Summary of Base Operational Costs ..................................................................... 22
Table 12: Equipment Costs .................................................................................................... 22
Table 13: Summary of Base Costs......................................................................................... 23
Table 14: Descriptions of key positions within the proposed industry ................................. 26
Table 15: Labour availability for the proposed industry ....................................................... 29
Table 16: A general assessment of locations in T&T ............................................................ 31
Table 17: Potential Investors and Partners ............................................................................ 33
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List of Figures
Figure 1: General Flow of Activities in Recycled Paper and Bio-based Products .................. 3
Figure 2: Key Stakeholder Groups within the Recycled Paper Packaging Industry ............... 6
Figure 3: Stakeholders in the Recycled Paper Packaging Industry ......................................... 8
Figure 4: Value stream map for the recycled paper and bio-based product industry ............ 17
Figure 5: Discounted Annual Net Cash Flows ...................................................................... 24
Figure 6: Organizational Chart for Recycled Paper and Bio-based Products ....................... 25
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1 Description of the Opportunity

1.1 Summary
Paper recycling is yet to be fully developed in T&T. There is, however, demand for a cost
effective packaging option for agricultural produce and food. Crates and cartons from
recycled paper and bio-based material can fill this void. This type of packaging can easily be
produced from banana pseudo-stems and other bio-based material together with imported
paper pulp and paper collected from offices and businesses. It presents a green alternative to
the waste ending up in the landfills while making a useful product that is critical for
preventing the spoilage and rotting of fruits and vegetables delivered to wholesale and retail
markets. Packaging may be made for items such as avocadoes, mangoes, guavas, bananas,
paw paws and other fragile tropical fruits and vegetables which are subject to spoilage due
to poor handling and post-harvest processing after leaving the farm gate. This opportunity
was assessed in the light of knowledge on the effects of having to dump or lower prices of
goods due to spoilage as appropriate packaging is scarce for oddly-shaped, high demand
produce from developing country markets.
Apart from the production of tissue from imported paper pulp, paper recycling in T&T is
still a relatively unexplored area. Furthermore, even though local scientists and engineers
have researched the production and use of bio-based material in products, this has not yet
been commercialized. This profile seeks to exploit this niche with the production of
specialized packaging for high value, high volume, agricultural products and premium paper
shopping bags out of 100% and 40% recycled /bio-based material. Attractive, but strong
bags and cost-effective disposable packing crates will be developed, staying true to the eco-
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friendly standards that exist in the industry today. Product lines may further be expanded to
create firm packaging for ethnic foods commonly shipped from developing countries as well
as fragile items such as bottles which must be couriered.
Table 1: Investment Summary

SCENARIO INVESTMENT (IN PAYBACK 7 YEAR NPV (IN 7 YEAR
MILLION USD) PERIOD MILLION USD) IRR
PESSIMISTIC 1.7 7 yrs 0.26 12%
MODERATE 2.1 6 yrs 0.316 17%
OPTIMISTIC 2.8 4 yrs 2.34 34%
1.2 Product Mix
A sample product mix is shown in Table 2. The shopping bags may be offered with or
without company logo prints. The shipping boxes may be offered with or without company
logo prints and with or without special partitions. The food trays may be offered in different
configurations to accommodate small, medium, or large fruit and vegetables in different
shapes. The price were estimated from similar items on the market.
Table 2: Product Mix

PRODUCT UNIT NUMBER WHOLESALE(USD)
(WEIGHT)
40% Shopping Bags 500 bags (45 lbs) $56.00
(9 3/4 x 6 1/4 x 14 3/8") plain or printed
100% recycled shopping bags 5 x 3 x 8" 250 bags (13 lbs) $76.00
(handled) plain or printed
Craft tissue paper 20 x 30" sheets 1000 sheets (16lbs) $59.00
Recycled shipping boxes - 9 x 9 x 9" plain, 25 boxes (15 lbs) $24.99
printed, with partitions
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Recycled pulp food tray 9 1/8 x 6 7/8 x 1 3/4" 500 recycled pulp trays $99.00
with small, medium or large
1.3 Description of Activities
Raw materials would be collected from suppliers, transported to the factory, where it will
then be processed and made into the required product. It will then be distributed to
customers.
SUPPLIERS TRANSPORT PROCESSING BOX MAKING DISTRIBUTION
Figure 1: General Flow of Activities in Recycled Paper and Bio-based Products
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2 Industry Overview
2.1 Industry Description
Recycled paper packaging accounts for 65% of all recycled packaging products and is
estimated to become a US$139 billion market by 2018 (PackingWorld 2014). The United
States of America (USA) has reached a recycling rate of 70%, while Canada has reached 80
% and European countries averaging 75%. The rest of the world is restricted by limited
recycling infrastructure. Packaging products made from recycled paper include corrugated
containers, coffee cups, cartons, bags, boxes and even cutlery. These products may contain
bio-based material mixed with the paper pulp. However, with recent growth in the food
industry, it is expected that the demand for food packaging would also increase. The
CARICOM market produces over 1.5 million MT of fruits annually (FAO 2009) which can
be packaged in recycled paper & bio-based packaging.
2.2 Incentives
A number of incentives are available for investors. In addition to general incentives, there
are incentives related to manufacturing as well as agro-processing. (All values for incentives
are in $TT where US $1. = TT $6.74 on 17 August, 2016)
 The Fiscal Incentives Act, offers a waiver of income tax on dividends or other
distributions, other than interest, out of profits derived from manufacture of approved
products.
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 Total Relief from Value Added Tax on imports for highly capital intensive
enterprises.
 The Customs & Excise Act offers investors duty free importation of plant,
machinery, equipment, components and raw materials, as specified in the Third
Schedule of the Customs Tariff.
 The Foreign Investment Act allows a foreign investor to purchase land not
exceeding one acre for residential purposes and five acres for commercial purposes
without obtaining a license. In order to purchase land in excess of these amounts, a
foreign investor must apply for a license from the Minister of Finance. Additionally,
foreign investors are allowed to purchase up to 30 per cent of the cumulative
shareholding in a public company.
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3 Stakeholder Analysis
3.1 Stakeholder Identification
SUPPLIER TRANSPORT PROCESSING BOX-MAKING DISTRIBUTION
•SWMCOL •SWMCOL •Public Utilities •SWMCOL •CARIRI

•Government agencies •Government agencies •Government agencies •Government agencies •EMA
•PPATT •PPATT •PPATT •PPATT •Government agencies
•TTCSI •TTCSI •TTCSI •TTCSI •PPATT
•Regional Corporations •Regional Corporations •UWI/UTT •Regional Corporations •TTCSI
•UWI/UTT •UWI/UTT •CARIRI •UWI/UTT •Consumers
•CARIRI •CARIRI •EMA •CARIRI •Export/Import Houses
•EMA •EMA •Bio-based waste •EMA •NAMDEVCO
•Bio-based waste •Bio-based waste producers •Bio-based waste •TTABA
producers producers (NAMDEVCO, producers
(NAMDEVCO, (NAMDEVCO, TTABA, CABA) (NAMDEVCO,
TTABA, CABA) TTABA, CABA) •Processors TTABA, CABA)
•Transport contractors •NTA •Processors/ Box
•COSTATT manufacturer
•MIC •NTA
Figure 2: Key Stakeholder Groups within the Recycled Paper Packaging Industry
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The research contained within this document was commissioned by InvesTT Limited and conducted by the UWI, St. Augustine Campus
3.2 Stakeholder Analysis
Each of the twenty (20) stakeholders in this study was rated on a scale from 1 to 5 for degree
of possession of each attribute where 1 was lowest and 5 was highest. The stakeholder was
deemed to possess the attribute of power, legitimacy or urgency when given a ranking of 3
or higher. The result of this preliminary analysis is summarized in Table 3. For this
opportunity, state agencies, NAMDEVCO, TTABA were deemed to be among the most
important stakeholders.
Table 3: Stakeholder Categorisation for the Recycled Paper Packaging

STAKEHOLDER POWER LEGITIMACY URGENCY TOTAL
Government Agencies 4 5 4 13
NAMDEVCO 5 4 4 13
TTABA 5 4 4 13
PPATT 3 5 4 12
TTCSI 3 5 4 12
Processors 4 4 4 12
Processors/ Box manufacturers 4 4 4 12
Consumers 4 4 4 12
Regional Corporation 4 3 4 11
EMA 3 4 4 11
Bio-based waste producers 3 4 4 11
Banks 4 3 4 11
UTT 2 4 4 10
CARIRI 2 4 4 10
Export/Import Houses 3 3 3 9
SWMCOL 2 3 3 8
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NTA 2 3 3 8
COSTATT 2 3 3 8
MIC 2 3 3 8
Transport contractors 3 2 2 7
Stakeholders - Recycled Paper and Bio-Based Products

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12
10
Power Legitimacy Urgency
Figure 3: Stakeholders in the Recycled Paper Packaging Industry
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4 Environmental Scan
4.1 External Analysis
PESTLE
The environmental scan started with an evaluation of the external environment for cocoa and
chocolate production. This was done using the PESTLE tool where Political, Economic,
Social, Technological, Legal and Environmental (physical) benefits or concerns regarding
the venture were identified and their potential impact individually assessed. See Table 4.
Table 4: PESTLE Analysis for the Recycled Paper Packaging Industry

CATEGORY SITUATION POTENTIAL IMPACT
Political It was identified as an area of interest There has been growth within the sector
for economic development. Over 90 and this growth will continue.
million TT$ has been invested in
research and development to develop
the sector.
The government has established The There will be support for businesses in
Printing and Packaging industry this area.
council of Trinidad and Tobago
Economic It is a multi-million industry. Very competitive both globally and
domestically.
Industry contributes over 600 million Large income earner.
dollars annually to the national GDP.
There has been significant growth in Investment opportunities in recycled
this industry and estimated to grow packaging materials, packaging and
by 4% until 2018. design and raw materials.
Social Creates many jobs for both skilled Helps reduce unemployment.
and unskilled
Technological Industry uses very modern Enterprise is highly capital intensive
technology to maintain and labour force is highly skilled.
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competitiveness.
There exist several incentives to Government incentives are highly
investors. attractive.
Legal The Fiscal Incentives The legal environment is welcoming
The Foreign Investment act towards this venture.
Customs and Excise Act
Total relief from value added Tax for
capital intensive enterprises
Environmental Trinidad and Tobago has the second Recycling would go a long way to
largest carbon footprint in the world. reducing our carbon footprint, as well
We are a signatory of the Kyoto as allowing us to better meet the
Protocol as well as having our own benchmarks set out in the protocol.
climate change policy.
PORTER’S 5 FORCES
The second part of the external analysis examined the competitive environment. For this
analysis Porter’s 5 Forces (P5F) was used. P5F looks at the rivalry among existing
competitors, the threat of new entrants, the threat of substitute products, the bargaining
power of suppliers and the bargaining power of customers. Using the P5F tool is superior to
simply identifying competitors in the marketplace and assessing their potential threat.
Because it allows for the analysis of potential threats from other products or ventures that
may not be identical or even operate in the same industry but which are threats nonetheless.
This analysis can be seen in Table 5.
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Table 5: Competitive Issues in the Recycled Paper Packaging Industry

FORCE SITUATION THREAT LEVEL
Existing rivalry There is a highly competitive industry with HIGH
China and the USA being large competitors in
the international arena. This makes the threat of
existing rivalry HIGH.
Threat of new The industry is highly competitive and very LOW
entrant capital intensive. Thus the threat of new entrants
is LOW.
Threat of substitute Because we intend to target the EU market, LOW
products preferential treatment may be given to
recycled/bio-based products. Also the input cost
of the packaging material is low, so it does not
affect the final cost of the commodity. Hence the
threat from substitute products is low.
Bargaining power Because the economy is highly competitive, HIGH
of customers customers have several choices, thus given them
high choosing power. Therefore the threat from
the bargaining power of customers is high.
Bargaining power Raw material is waste material from other MEDIUM
of suppliers processors. As long as supply can meet demand,
the threat from the bargaining power of suppliers
is MEDIUM.
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4.2 Internal Analysis
SWOT
The SWOT tool was used to conduct an Internal Analysis for the venture. The first phase of
the SWOT tool identified the Strengths and Weaknesses inherent to the proposed project;
and major Opportunities in and Threats to the industry (see Table 6). The second phase
recommends how strengths and opportunities can be exploited and threats can be mitigated
and weaknesses addressed respectively; this is addressed elsewhere in the report.
Table 6: SWOT Analysis Recycled Paper and Bio-Based Products
STRENGTHS WEAKNESSES
 Availability of raw materials.  Very capital intensive.
 Attractive government incentives.  Domestic research and
 Highly skilled labour available. development has a long way to go
 Low cost of local energy. regarding bio-based materials.
 Availability of water all year round,  High labour cost in Trinidad and
as well as other necessary Tobago.
resources.
 T&T is regarded as a leader in
CARICOM in packaging.
 T&T has already penetrated
markets in Mexico, Costa Rica and
South Florida.
OPPORTUNITIES THREATS
 Large domestic, regional and extra-  China and the USA are more
regional fresh food markets capable of attaining economies of
estimated at nearly 70 million scale in the general paper
USD. packaging sector.
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 Opportunity to export to the EU as  Demand can overcome supply of

they are currently moving towards raw materials, given the high
creating a circular economy. growth of the sector.
 Local economy is highly
competitive with several local
suppliers producing products from
synthetic materials.
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5 Sub-sector Assessment
The Recycled Paper and Bio-based Products venture, was assessed using various criteria
including market demand, raw material cost and availability, energy use, investment value,
finished product value and availability of labour. This was based on a factor rating method
developed by subject-matter experts. On each of the criterion, the venture was given a rating
from 1 to 10. These were weighted according to the relative importance of the criteria and a
final score calculated. The final score for the venture was 7.194 out of a possible 10, which
was above average among the potential investment opportunities. See Table 7 for the
weighted assessment.
Table 7: Sub-sector Assessment of Recycled Paper Packaging

CRITERION ASSESSMENT WEIGHT RATING SCORE
1-10
Demand This industry is estimated to create a 19.6% 9 1.764
domestic and regional market of
25million TT$ annually from sales in
the packaging of fresh fruits and
vegetables. There is a steady growth
market and opportunities for
development of many various
industries linkages along the value
chain. It also falls in line with the EU
new drive of a circular economy thus
making the products attractive to the
EU market.
Finished product The finished product is of relatively 17.4% 5 0.87
value low value but will meet specifications
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for exporting of agricultural products

and foods.
Raw material Raw material is available through 13.0% 9 1.17
(availability) paper waste, waste of processed
agricultural products, pseudo stems of
banana pants etc.
Raw material (cost) The cost of raw material is relatively 13.0% 8 1.04
low as it uses waste products and
previously discarded agricultural
materials.
Legislation/regulation/ There is no legislation, however, the 10.9% 6 0.654
government focus industry will be very welcomed by
government as it fulfils the Kyoto
mandate.
Energy The drying process may require most 8.7% 6 0.522
of the energy requirements. Other
processes energy requirements would
be low to medium.
Labour market The labour is readily available and 8.7% 6 0.522
highly skilled. Government and the
printing and packaging institute
council along with UTT, MIC and
COSATT have come together to
develop the skills of nationals in this
sector.
Investment value A start-up company may require 6.5% 8 0.52
between 2-5 million USD
Technology UTT has focused its attention in this 2.2% 6 0.132
area to develop the technology.
However, there is need for investment
in modern technology.
Job creation To be competitive highly skilled and 0.0% 5 0
sophisticated machinery would be
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employed. The number of jobs created

would be less than 25. However, many
indirect jobs would be created.
Total 100% 68 7.194
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6 Identification of Value Added Services

Value Stream Map (VSM) has its genesis in the Toyota Production System of Lean
Manufacturing. It essentially shows, on a single page, how value is created along the
extended value chain from suppliers to customers for a single product type. When the value
stream is mapped and assessed, opportunities for improvement may only then be identified.
The value stream indicates other services that will be necessary for the successful realization
of the venture. This can be seen in Figure 4.
Figure 4: Value stream map for the recycled paper and bio-based product industry
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6.1 Supply chain issues
As can be seen in Figure 4, the proposed industry transforms otherwise waste bio-based
materials into valuable products. With this in mind, a consideration of the local landscape
readily identifies some potential issues or concerns. These include:
The availability of feedstock:
A consistent supply of bio-based feedstock is critical to the operations of the proposed
industry. Locally, the current area of land under cultivation that produces suitable bio-stock,
is approximately 350 ha annually. Accordingly, securing a consistent and sufficient supply
of local bio-stock can potentially be a challenge and sourcing feedstock from other regional
suppliers, is a likely requirement.
Bio-stock storage:
Given the organic nature of the bio-stock, long-term storage is likely to be threatened by
some key challenges. Firstly, as with any organic material in a state of decomposition, there
is the possibility of a biohazard if storage conditions are not suitable or properly maintained.
Additionally, the dried nature of some of the bio-stock also poses the challenge of a
potential fire hazard. These challenges however, are far from insurmountable. Instead, they
impress the need for correct storage and handling procedures in order to prevent significant
loss of raw material and key assets, which have costly ramifications for the industry’s
operations.
Importation of bio-stock:
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The requirement to import bio-stock material from other suppliers has the benefit of off-
setting raw material shortages, but does come with its challenges. Firstly, there is an issue of
ensuring that the quality of the imported material is of a sufficient standard; this is a quality
control issue. More importantly however, the importation of bio-based material does pose
potential threats from an agricultural perspective. The possibility of introducing problematic
plant and/or animal species, which can later become pests within the local environment,
must be addressed with significant caution. Accordingly, great care must be taken to ensure
that these operations conform to the local regulatory standards and requirements.
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7 Financial Analysis
7.1 Infrastructure
This facility will utilise approximately 18,000 sqft for its operations at an approximate
yearly rental of US$100,000. Preparation costs will be in the vicinity of US$126,000 with an
additional US$20,000 for installation of a 48KV electrical kiosk (See Table 8).
Table 8: Infrastructure Costs

DESCRIPTION COST (USD)
Renting/Leasing of a 18,000sqft warehouse/factory 100,000
Installation of fire and security systems, air conditioning, plumbing, electrical 126,000
works etc. to make the building ready of occupation
Cost of installing a 24kV electrical kiosk 20,000
TOTAL 246,000.00
7.2 Annual Utilities Usage
It is projected that 23,488.89m3 of water will be utilized per year, on average. At $1.80 U.S,
per m3, this will cost $42,300 U.S. per year. Similarly, a yearly projection of 2,412,066kWh
for electricity was made. At $0.03 U.S. per kWh, this will incur an annual expenditure of
$72,400 U.S.
Table 9: Annual Utilities Summary

DESCRIPTION COST (USD)
Electricity – 2,412,066 kWh per year at 0.03USD per kWh 72,400.00
Water – 23,488.89m per year, at $1.80 USD per m for a year
3 3
42,300.00
TOTAL 114,700.00
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7.3 Salaries
Table 10: Summary of Annual Salaries

POSITION NUMBER OF YEARLY TOTAL YEARLY
EMPLOYEES SALARY (USD) SALARY (USD)
General Manager 1 $30,000.00 $30,000.00
Executive Assistant 1 $12,000.00 $12,000.00
Production Manager 1 $25,000.00 $25,000.00
Marketing/BD Manager 1 $25,000.00 $25,000.00
Admin and Financial Manager 1 $25,000.00 $25,000.00
Admin Assistant 1 $9,000.00 $9,000.00
Accounting Assistant 1 $11,000.00 $11,000.00
Engineer 1 $18,000.00 $18,000.00
Floor Operators 10 $9,000.00 $90,000.00
Maintenance Technician 1 $12,000.00 $12,000.00
Sales Officers 3 $18,000.00 $54,000.00
Sales Assistant 1 $9,000.00 $9,000.00
Merchandisers 3 $9,000.00 $27,000.00
TOTAL 26 $347,000.00
7.4 Legal/ Statutory Fees
Legal/Statutory Fees were estimated at US$10,100.
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7.5 Operational Costs
Table 11: Summary of Base Operational Costs

COST CENTER COST (USD) DESCRIPTION
Marketing/Promotion/ Product $118,400.00 10% of expected annual income
Development
Maintenance $45,000.00 (On Call Service Company/ OEM
Representative)
Security $30,000.00
Telecommunication $47,000.00 (Phone and Internet Services)
Miscellaneous $23,700.00 2% of expected annual income
Vehicle Rentals/Leases $60,000.00 (Cold Storage and Delivery Trucks,
Material Handling Vehicles e.g. Forklifts
)
Insurance/ Export $60,000.00 5% of expected annual income
Raw Material $79,000.00 75% virgin pulp -25% recycled pulp
TOTAL $463,100.00
7.6 Equipment
Equipment purchase at the beginning of the project was also estimated as shown in Table
12.
Table 12: Equipment Costs

EQUIPMENT COST (USD)
Paper Pulping Machine $450,000
High-speed Paper Pulp Washing Machine/Pulp Washer/Stock Washer $25,000
Paper de-inking Machine $205,000
High Pulp Thickening Ratio Pulp Pressing and Filtering Equipment Screw Press $1,000
Washer
Pulp rinsing equipment/pulp bleaching machine/paper pulp washing machine $5,000
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Mobile/Lifting Equipment (Cranes/Forklifts) $150,000

Paper pulp food boxes forming machine $328,000
TOTAL $1,164,000
7.7 Financial Analysis
Table 13: Summary of Base Costs

COST CENTER COST (USD) FREQUENCY
OF COST
Utilities $114,700.00 Recurring
Salaries $347,000.00 Recurring
Rental/Leasing $100,000.00 Recurring
Legal/Statutory Fees $10,100.00 Recurring
Operational Costs $463,100.00 Recurring
Subtotal $1,034,900.00
Plant/Equipment Cost $1,164,000.00 Initial
Infrastructure $246,000.00 Initial
Subtotal $1,410,000.00
TOTAL $2,444,900.00
The product range discussed in the product mix section of the report were manipulated to
give optimistic, moderate and pessimistic scenarios to give an indication of the feasibility of
the project. The plant was assumed to start operating at 60% capacity and to increase to
100% within 5 years. The total investment was split over years 0-3. All estimates are still
considered conservative and achievable because the fact that the technology is fairly new for
T&T was considered, and a moderate start was assumed.
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It was found that based on the pessimistic estimate, this project would payback in 7 years
with an annual return of 12% and a positive net present value of US$26,331. The moderate
estimate of the market will yield a project that pays back in 6 years. The seven year return
on this project is 17% and the net present value is US$316,318. With innovative and creative
product development and targeting moderate but lucrative markets, the optimistic forecast is
possible. This scenario pays back in year 4 with a 7 year annual return of 34% and net
present value of US$2,340,000. These were seen in Table 1.
Discounted Net Cash Flows (Est.)

5,000,000.00
Discounted Annual Net Cash Flow (USD)
4,000,000.00
3,000,000.00
2,000,000.00
1,000,000.00
-
0 1 2 3 4 5 6 7 8 9 10
(1,000,000.00)
(2,000,000.00)
(3,000,000.00)
(4,000,000.00)
Year
Optimistic Moderate Pessimistic
Figure 5: Discounted Annual Net Cash Flows
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8 Human Resources
8.1 Organisation Chart
Board of Directors
General Manager
Executive Assistant
Marketing/ Business Administrative/

Production Manager
Development Manager Financial Manager
Engineer Floor Operators (10) Sales Officers (3) Accounting Assistant
Maintenance Administrative
Merchandisers (3)
Technician Assistant
Sales Assistant
Figure 6: Organizational Chart for Recycled Paper and Bio-based Products
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8.2 Job Descriptions for Key Positions
Table 14: Descriptions of key positions within the proposed industry

POSITION RESPONSIBILITY
Board of Directors (BOD) The Board of Directors will comprise the Chairperson who is
knowledgeable in business and food industry sector,
Secretary/Financial Controller, Food Safety Consultant, Food
Engineer, Legal Advisor, a Business Development/Marketing
Professional and a Major Investor.
General Manager The General Manager will report to the BOD and will assume overall
responsibility for the management and operations of the organization.
Included would be product development, business development,
operations, production, financial control, quality control, and training
of employees in all aspects of the operation.
Executive Assistant The Executive Assistant reports to the General Manager and
performs general administrative duties essential to the efficient
running of the organisation. The Executive Assistant handles
communication from the company, manages the office, schedules and
keeps records of major meetings, is responsible for record keeping
throughout the company, orders office consumables and manages
contractors for cleaning and other similar services.
Finance/ Admin Manager The Finance/ Admin Manager is responsible for Human Resource
Management and for controlling the company’s finances and for
reporting to the board any variances from the targets established. The
Finance/ Admin Manager will produce regular Management and
Financial Reports and will perform internal audits on the company’s
operations on a regular basis. The Finance/ Admin Manager will
ensure that any/all statutory requirements are met and hold
responsibility for the warehouse and stores.
Accounting Assistant The Accounting Assistant is responsible for processing of bills,
invoices, accounts payable and receivable, etc. and for the
preparation of the payroll and reports as necessary.
26
Admin Assistant The Administrative Assistant reports to the Finance/Admin Manager

and is responsible for general administrative duties related to
purchasing, and warehouse/stock control, respectively.
Marketing & Business The Marketing & Business Development Manager is responsible for
Development Manager promoting the product and for the actual online and physical sales of
the product into new and existing markets. He/she will also
contribute to new product development based on feedback from the
market and for using all forms of media to assist in the promotion and
sales of the product. He/she is responsible for planning, advertising,
public relations, product development and distribution.
Sales Officers The Local, Regional and International Sales Officers are required to
execute sales according to targets and to establish and maintain
strong relationships with major customers. They also participate in
New Business and New Product Development based on feedback
from customers.
Merchandisers The Merchandisers complete the sales of products to the various
clients in conjunction with the rest of the marketing and sales team.
They are responsible for ensuring that the correct documentation is
prepared and for the physical delivery of products to the client, ports,
or couriers, where required.
Sales Assistant The Sales Assistant is responsible for co-ordinating the orders in the
department and preparing necessary documentation for sharing with
the customer, internal parties and the warehouse.
Production Manager The Production Manager is responsible for production planning to
sync with demand and runs the plant ensuring there is sufficient raw
material, the finished product is of good quality, and production
quantity is met. The production manager is involved in new product
development. He/she is champion of safety and quality and is
involved in selection, installation and maintenance of all equipment.
The Engineer and Floor Operators report to the production manager.
Engineer The Engineer is responsible for day-to-day health, safety and quality
control on the plant. The Engineer is responsible for ensuring that all
the equipment is kept in good condition and for allocating
27
responsibilities to the Maintenance Technician.

Maintenance Technician The Maintenance Technician is responsible for working with the
engineer to ensure 100% availability of equipment, when needed.
The Maintenance Technician will execute preventative measures as
well as troubleshoot processes and diagnose mechanical, hydraulic
and pneumatic problems associated with process equipment.
Floor Operators The Floor Operators operate the machines to make the product. They
also ensure smooth operation by performing duties such as cleaning,
packing, driving forklifts, storage, etc. Their span of duties ranges
from the shop floor to the warehouse.
8.3 Labour availability
The labour requirement for this proposed industry is rather diverse. The skill set required
within the industry ranges from managerial to technical. However, this industry does not
necessitate the use of highly specialized personnel, with more than 65% of the labour force
requiring only fundamental training. The specific categories of labour personnel required
include: managers, engineer/technicians, sales & purchasing, administration and accounting.
With reference to the aforementioned categories of personnel, there is a high likelihood of
labour availability. CSO labour statistics data for the year 2016, indicates that the number of
persons in the following categories are as follows:
1. Senior officials and managers – 61700
2. Professionals – 37600
3. Technicians and associate professionals – 70800
4. Clerks – 72000
5. Plant and machine operators and assemblers – 58300

28
These categories represent the main sectors of the labour force from which these personnel
will likely be drawn. Managers will be drawn from the first category, engineers/technicians
from the second and/or third, sales and purchasing from the fourth and administration and
accounting from the second. The largest component of the labour force, i.e. the floor
operators, are likely to be drawn from the fifth category.
The statistics further indicate that generally, at least 1% of the labour in the aforementioned
sectors is currently unemployed. Accordingly, if availability is simply assessed by the
number of unemployed persons in these categories, the data indicates that there is an
adequate number of personnel available for the proposed industry. Additionally, there are a
number of vocational and tertiary education institutions that deliver graduates on a
consistent basis; this further steadily increases the number of unemployed persons in the
respective categories. However, availability cannot be limited to the number of persons
currently unemployed, as it is likely that there are other persons who may be willing to
change their current working conditions, or seeking a new experience. As such, proper
marketing and advertisement will be required to attract and recruit the most suitable persons
for the industry. Table 15 provides further numerical details for the respective categories.
Table 15: Labour availability for the proposed industry

CATEGORY UNEMPLOYED EMPLOYED POTENTIAL
EMPLOYMENT POOL
Professionals 900 36700 Graduates from any of the
 Engineers sixteen (16) Universities of
 Sales Assistant the West Indies Open
29
 Admin Assistant Campus locations in the

 Accounting Assistant Caribbean, and/or any of
 Executive Assistant UTT campuses in Trinidad.
Legislators, senior officials, 400 61300 Sourced from the existing

managers pool of unemployed and
 Board of Directors employed persons through
 General Manager interviews and the
 Production Manager subsequent process of
 Finance Manager filtering.
 Sales & Business
Development Manager
Clerks 5100 67100 Can be sourced from several
 Sales Officer training centers in Trinidad
 Merchandisers registered under the
Accreditation Council of
Technicians 1500 69300 Trinidad and Tobago
 Maintenance (ACTT)
 Computer E.g. Crane Safe Technical
Institute, Advanced
Floor Operators 600 57700 Solutions Technical Institute
and Technical Institute for
Learning just to list a few.
30
9 Location
The assessment of the most suitable locations for the establishment of the proposed facility,
was determined using a factor rating method. Fourteen (14) rating criteria were used in this
particular instance. These criteria can be found in the first column of the Table 16.
Table 16: A general assessment of locations in T&T
The locations considered were those that have previously been identified for national
economic development, i.e., key economic zones. These locations were considered as they
are well positioned for the establishment of new businesses. Accordingly, access to the
necessary infrastructure, services and other critical resources would be more readily
available, as compared to most other locations across the country.
31
As in other similar assessments, the results of the assessment indicate that the seven
locations in Trinidad are all relatively well positioned to setup the proposed manufacturing
facilities. Of these seven, Central and Trincity areas have emerged as the locations with the
greatest comparative advantage. This is primarily a result of their relative proximity to Port
of Spain and/or Piarco, where the key ports and many of the critical supporting services are
located. As in previous assessments, Tobago has emerged as a location that is least suitable.
The primary reason for this is the lack of a container port in Tobago. Port access is a critical
requirement, if the exportation of the products is required. Accordingly, the construction of a
container port would be critical to improving the suitability of Tobago as a location for the
proposed industry.
Best Locations based on rankings are:
1. Central Trinidad: 1035

2. Trincity: 1030
3. Aranguez: 1015
4. Arima: 1000
5. South: 975
6. Diego Martin: 955
7. Tobago: 845
32
10 List of Potential Investors and Partners

Table 17 gives a list of potential investors and partners, together with contact information.
The list is not exhaustive.
Table 17: Potential Investors and Partners

POTENTIAL INVESTOR/ PARTNERS CONTACT INFORMATION
The Trinidad and Tobago Solid Waste 34 Independence Square
Management Company Limited (SWMCOL) Port of Spain, Trinidad and Tobago
Tel: (868) 625-6678
Trinidad and Tobago Coalition of Services The Chief Executive Officer

Industries (TTCSI) Trinidad and Tobago Coalition of Services
Industries Limited
45 Cornelio Street, Woodbrook, Port of Spain
Tel.: (868) 622-9229
Fax: (868) 622-8985
Email: info@ttcsi.org
The University of Trinidad and Tobago Lot No.1,

(UTT) Off Munroe Road Exit,
Uriah Butler Highway,
Charlieville
Tel: (868) 642-8888
Caribbean Industrial Research Institute University of the West Indies Campus,

(CARIRI) St. Augustine
Trinidad and Tobago
Tel: 299-0210
Email: acams@cariri.com
33
Environmental Management Authority #8 Elizabeth Street, St. Clair, Port of Spain

(EMA) Tel: (868) 628-8042 / 8044-5
Help Desk: ext 2254
Fax: (868) 628-9122
Email: ema@ema.co.tt
The National Agricultural Marketing and S.S. Erin Road, Debe

Development Company (NAMDEVCO) Tel:647-3218/3467/3866/7576/1340/7907/2368
Fax:647-6087
Agricultural Development Bank (ADB) #87 Henry Street,

Port of Spain
Tel: 623 - 6261-5
Fax: 627-7493/ 624 -3087
E-mail: northoffice@adbtt.com
The National Export Facilitation 151B Charlotte Street,

Organization of Trinidad and Tobago Port of Spain
(EXPORTT) Tel: (868) 623-5507
Fax: (868) 625-8126
Email: info@exportt.co.tt
America Chung Nam United States of America

City of Industry, California
Tele: (909) 839-8383
Website: www.acni.net
Koch Industries (Koch Supply and Trading) United States of America

Rob Carlton – Manager, BusinessCommunications
Email: rob.carlton@kochps.com
Email: info@kochind.com (for general enquires)
Website: www.kochind.com
34
Dension International Trading Corporation United States of America

Company California
Contact: Vincent Cai
Title: President
Tele: 1-626-339-3699
Newport CH International United States of America

Orange, California
Tele: (714) 572- 8881 (general calls)
Contact: Jimmy Yang
Title: Export sales
Email: jyang@newportch.com
Website: www.newportch.com
Potential Industries United States of America

Wilmington, California
Tele: 310-807-4466
Email: info@potentialindustries.com
Website: www.potentialindustries.com
Ralison United States of America

Diamond Bar, California
Tele: 909-861-9823
Fax: 909-861-9736
Sales: Cheng Lu - Ext: 114
Website: www.ralison.net
35
11 Concluding Remarks
This Plastics, Printing and Packaging (PPP) sector contributes over 600 million TT$ to the
national GDP and has an expected growth rate of 4% over the next few years. Recycled
paper and the bio-based packaging sub-sector support the initiative of the EU’s circular
economy and aids the GORTT in meeting the mandate of the Kyoto accord. The inputs to
the industry are relatively available and low cost. The markets are many, including the
packaging of fresh fruits domestically, regionally and extra-regionally. Over 2 million tons
of fruit is exported through regional and extra regional markets. It is estimated that with a
15% market share a new entrant could generate an annual gross of 25 million TT$. The
relatively low income above is due to constraints in acquiring organic raw material for the
process. As the industry grows, more material would become available, and the annual
income is expected to increase. Green shopping bags and gift bags as well as secure
packaging for shipping glass bottles are just two other lucrative product lines. The enterprise
is encouraged to conduct continuous research and development into new products and
underserved markets.
36
12 References
Conserve Energy Future. 2014. “Paper Recycling.” Accessed November 14, 2015.
http://www.conserve-energy-future.com/paperrecycling.php
Ministry of Trade, Industry, Investment and Communications. 2015. “Compendium of

Investment Incentives in Trinidad and Tobago for the Non-Energy Sector.” Accessed
December 15, 2015. http://tradeind.gov.tt/wp-content/uploads/2016/02/2015-
Compendium-of-Incentives.pdf
Packing World. 2014. “Recycled paper packaging market to grow to $139B by 2018.”
Accessed December 19, 2015.
https://www.packworld.com/sustainability/recycling/recycled-paper-packaging-
market-grow-139b-2018
Research and Markets. 2015. “Global Recycled Paper Packaging Market 2015-2019 -
Increased Demand for Sustainable Packaging.” Accessed December 19, 2015.
http://www.prnewswire.com/news-releases/global-recycled-paper-packaging-
market-2015-2019---increased-demand-for-sustainable-packaging-300094733.html
Transparency Market Research. 2015. “Recycled Paper Packaging Market - Global Industry
Analysis, Size, Share, Growth, Trends, and Forecast 2016 – 2024.” Accessed
December 03, 2015. http://www.transparencymarketresearch.com/recycled-paper-
packaging-market.html
37

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ABSTRACT

Paper recycling is yet to be fully developed in

T&T. There is, however, demand for a cost

effective packaging option for agricultural

produce and food. Crates and cartons from

recycled paper and bio-based material can fill

this void. This type of packaging can easily be

MANUFACTURING produced from banana pseudo-stems and other

bio-based material together with imported paper

PROFILE 6: Recycled pulp and paper collected from offices and

businesses. It presents a green alternative to the

Paper and Bio-based waste ending up in the landfills while making a

useful product that is critical for preventing the

delivered to wholesale and retail markets.

Manufacturing Sector of T&T ENGINEERING INSTITUTE 2016

List of Figures .......................................................................................................................... v

1 Description of the Opportunity ............................................................................................. 1

1.1 Summary ........................................................................................................................ 1

1.2 Product Mix ................................................................................................................... 2

1.3 Description of Activities ................................................................................................ 3

2 Industry Overview ................................................................................................................ 4

2.1 Industry Description ...................................................................................................... 4

2.2 Incentives ....................................................................................................................... 4

3 Stakeholder Analysis ............................................................................................................ 6

3.1 Stakeholder Identification .............................................................................................. 6

3.2 Stakeholder Analysis ..................................................................................................... 7

4 Environmental Scan .............................................................................................................. 9

4.1 External Analysis ........................................................................................................... 9

4.2 Internal Analysis .......................................................................................................... 12

5 Sub-sector Assessment ....................................................................................................... 14

6 Identification of Value Added Services .............................................................................. 17

6.1 Supply chain issues ...................................................................................................... 18

7 Financial Analysis .............................................................................................................. 20

7.2 Annual Utilities Usage ................................................................................................. 20

7.3 Salaries ......................................................................................................................... 21

7.4 Legal/ Statutory Fees ................................................................................................... 21

7.5 Operational Costs......................................................................................................... 22

7.6 Equipment .................................................................................................................... 22

7.7 Financial Analysis ....................................................................................................... 23

8 Human Resources ............................................................................................................... 25

8.1 Organisation Chart ....................................................................................................... 25

8.2 Job Descriptions for Key Positions.............................................................................. 26

8.3 Labour availability ....................................................................................................... 28

10 List of Potential Investors and Partners ............................................................................ 33

11 Concluding Remarks ........................................................................................................ 36

Table 2: Product Mix ............................................................................................................... 2

Table 3: Stakeholder Categorisation for the Recycled Paper Packaging ................................ 7

Table 5: Competitive Issues in the Recycled Paper Packaging Industry............................... 11

Table 6: SWOT Analysis Recycled Paper and Bio-Based Products ..................................... 12

Table 7: Sub-sector Assessment of Recycled Paper Packaging ............................................ 14

Table 8: Infrastructure Costs ................................................................................................. 20

Table 9: Annual Utilities Summary ....................................................................................... 20

Table 10: Summary of Annual Salaries ................................................................................. 21

Table 11: Summary of Base Operational Costs ..................................................................... 22

Table 12: Equipment Costs .................................................................................................... 22

Table 13: Summary of Base Costs......................................................................................... 23

Table 15: Labour availability for the proposed industry ....................................................... 29

Table 16: A general assessment of locations in T&T ............................................................ 31

Table 17: Potential Investors and Partners ............................................................................ 33

Figure 3: Stakeholders in the Recycled Paper Packaging Industry ......................................... 8

Figure 5: Discounted Annual Net Cash Flows ...................................................................... 24

1 Description of the Opportunity

produce from developing country markets.