Orthopedic Cast Tape
예비사업타당성보고서
PRE-ECONOMIC ANALYSIS ON ORTHOPEDIC CASTING TAPES
PRODUCTION PLANT
INTRODUCTION
As one of the leading medical products manufacturers and exporters in Korea, HYUBWOO E & D(HED) specializes in synthetic orthopedic casting tapes, fiberglass or polyester fabric coated with water-activated polyurethane resin and orthopedic splint. Our R&D efforts for the past few years have resulted in highly successful development of essential features such as strength, lightweight, moldability and comfort, etc. The newly developed soft type of casting tapes shortens the rehabilitation periods and enjoy massive popularity in the market as a leading brand in Korea. As a result, all the products are CE marked and registered at FDA in USA.
Considering their high quality, more than a million pieces of casting tapes particularly hard and soft types available and splints-pre-cut and roll types are supplied domestically and abroad.
Thanks to such proven quality and competitive price, we succeeded in replacing old-fashioned plaster bandages with synthetic orthopedic casting tapes which boast of several advantages compared to plaster bandages. Boasted by the technical confidence of quality products we proudly unveil the complete production facilities for orthopedic casting tapes alongside production technology transfer. Moreover, reliability and quality are guaranteed by supplying customized machines designed in-house and upgraded based on valuable production experiences accumulated through the years. Although small in scale, the proposed production plant is easily expandable;
thus ensuring of high return on your investment.
PRODUCTS AND SPECIFICATION
PRODUCTS AND SPECIFICATION
The proposed facilities can manufacture Cast Tape-Fiberglass/Poly products that have advantages such as lightness, strength, radiolucency, and porosity unlike the traditional plaster cast. In addition, cast removal generates less and larger dust than that generated upon the removal of plaster cast. Exposure to moisture or water also triggers a chemical reaction that causes the tape to become rigid.
The following are major characteristics:
- Excellent X-ray radiolucency
- Superior end lamination and mouldability
- Good air permeability
- Easy removal
- Environment – friendly material
| PRODUCTDESCRIPTIONS | TYPES | SIZE(wide * long) |
|---|---|---|
| CastFiberglass | Hardand Soft Available | 1”~5” * 180cm,360cm |
| CastPolyester | Hardand Soft Available | 1”~5” * 180cm,360cm |
| Splint Fiberglass | Pre-cut | 1”~6” *10”~45” |
| Splint Polyester | Pre-cut | 1”~15” * 10”~45” |
| Splint Fiberglass | Roll | 1”~6” * 2.3mto 4.5m |
| Splint Polyester | Roll | 1”~6” * 2.3mto 4.5m |
BRIEF PRODUCTION PROCESS
Raw Materials Preparation
Pre-mixed raw materials are weighed and put into the reactor. Raw material handling area should be dehumidified and kept dry.
Reacted Polyurethane Resins
Polyurethane resin may be substituted for water activated pre-polymer in the reactor.
Knitted Fabric Drying
Knitted-fabric (fiberglass or polyester) is dried in the drying room and transported into the coating machine. Polyurethane is then impregnated into dried fabric.
Coating/Winding on Fabric
Resin-impregnated fabric is wound on a bobbin at a specified tension or cut into the specified standard length
Sealing and Packing
After conducting quality inspection, the finished products are sealed and packed. The sealing process is critical for long-term storage. All the necessary information are printed on the sealed pack.
Notes:
- Casting tapes production facility should be operated in a properly dehumidified area to ensure the quality of the products.
- The processes described above are based on CAST production and it may vary slightly depending on the types of the product to be manufactured.
PRODUCTION MACHINEES AND INSTRUMENT
PRODUCTION CAPACITY
1,000 pieces/day (10 working hours a day) based on Cast Tape and it can increase by skill of technicians.
MANUFACTURING MODE
As shown in brief production process above, most manufacturing process is made by semi-automation operation. Inter-operation between each batch work will be manually done but each machine itself can be semi-automatic operated by attendant technician who watch and take action necessary for quality product. Automation degree of machine work should be optimized in term of production capacity and economics of project vs. investment.
UTILITY CONSUMPTION
| Electricity | 30 kw except air conditioning facilities |
| Water | 0.5 ton/day |
UTILITY CONSUMPTION
| Raw Material Storage | 150 ㎡ |
| Production Area | 100 ㎡ |
| Products Storage | 100 ㎡ |
OPERATIONAL WORKERS
| WORK | GRADE | NUMBERS |
|---|---|---|
| Manager | Management | 1 |
| Raw Material Handling | Skilled | 1 |
| Fabric Drying | Skilled | (1)* |
| Coating & Winding | Skilled | 1 |
| Sealing & Packing | Unskilled | (1)* |
Notes:
- Numbers marked with ( * ) indicates concurrent position.
- The necessary workers indicated above should be regarded as forecast data based on skill grade of operational workers.
PRODUCTION TECHNOLOGY TRANSFER
To enable the reliable production of quality products, the transfer of production know-how to Client is important including machinery supply. HED provides Client with all necessary technologies for the production of quality products. We continue with our R&D effort particularly the creation of new technologies and products to meet the needs of customers and for sharing with them in pursuit of mutual growth.
SCOPE OF SUPPLY
In general HED is responsible for the following machines and technical services (note, however, that detailed work scope is adjusted depending on the contract conditions.
| SUPPLY AND WORKS | CLIENT | HED |
|---|---|---|
| Production machinery | ○ | ● |
| Core raw materials supply(*) | ○ | ● |
| Site erection | ● | ○ |
| Site supervision(*) | ○ | ● |
| Production technology transfer | ○ | ● |
| Building work and HVAC | ● | ○ |
PROPOSED FACTORY LAYOUT
The factory layout is proposed for planning purpose only; rearrange as necessary to accommodate the optimized production scheme, which should be determined considering various design parameters such as production capacity, product types, HVAC, necessary utility facilities, etc.
BRIEF ECONOMICS ANALYSIS
This study has been analyzed based on price data of 2013 and it should be treated for reference only and customized by local requirement and current price data.
1 PRODUCTION AND EXPECTED ANNUAL REVENUE
| CastTape | Machines | Productionand Price | Annual Revenue | |
|---|---|---|---|---|
| Yearly Production | Price | |||
| 2inch x 3.6m long(typical) | 2 line installed | 600,000 rolls | USD2.1 | USD1,260,000 |
Note – 1) For brief study one type-2 inch wide and 4 yards long of cast tape is selected and other sizes of cast tapes can be manufactured by using the same equipment and machines according to market demands.
2. RAW MATERIALS COST FOR ONE(1) YEAR OPERATION
| No | Description | Unit | Q’ty | U/Price | Total Price |
|---|---|---|---|---|---|
| 1 | Mixed Polyurethane Resin | tons | 27.4 | US-$8,050 | 220,570 |
| 2 | DMDEE | kg | 288 | US-$39.64 | 11,416 |
| 3 | Knit Tape-Fiberglass | km | 2,376 | US-$101.67 | 241,568 |
| 4 | Aluminum Pouch | pcs | 660,000 | US-$ 0.054 | 35,640 |
| 5 | Bobbin/Others | lot | 660,000 | US-$ 0.087 | 57,420 |
| Total | 566,614 | ||||
Note – 1) The above operation cost is estimated based on orthopedic cast tape -2inch x 4 yard production.
3. ANNUAL PRODUCTION COST
| No | Description | Unit | Q’ty | U/Price | Total Price |
|---|---|---|---|---|---|
| 1 | Electricity | GWH | 144 | 150 | 21,600 |
| 2 | Labor Cost | Person | 5 | 500 | 30,000 |
| 3 | Office Overhead | Lot | 5% of Revenue | 63,000 | |
| 4 | Repair & Maintenance Cost | Lot | 3% of Revenue | 37,800 | |
| Total | US-$152,400 | ||||
4. ANNUAL REVENUE AND EXPENDITURE
| REVENUE/COST | SALES AMOUNT | AMOUNT(USD) |
|---|---|---|
| ANNUAL REVENUE | ||
| Cast TapeSale | 600,000rolls | 1,260,000 |
| TOTAL | 1,260,000 | |
| ANNUAL EXPENSE | EXPENDITURE | AMOUNT(USD) |
| Raw MaterialFor Cast Tape | 600,000rolls | 566,600 |
| Production Cost | 152,400 | |
| Depreciation | 20 years | 25,000 |
| Interest forLoan of USD500,000 | 7%/annum | 35,000 |
| TOTAL | 779,000 | |
| PROFIT BEFORETAX | USD 481,000 | |
5. MARKET POTENTIAL OF ORTHOPEDIC CAST TAPE
| Country/Market | Materials | Shares | Market Volume |
|---|---|---|---|
| North America | Cast+Splint | 69% | 172.2 M-USD |
| Asia Pacific | Cast+Splint | 20% | 59.4 M |
| Europe | Cast+Splint | 19% | 55.2 M |
| Latin America | Cast+Splint | 1.5% | 4.4 M |
| Others | Cast+Splint | 0.5% | 1.1M |
● MAJOR WORLDWIDE PLAYERS
3M in USA dominates cast tape markets with high a market share in the world, since 3M has the patent right for lubricant of polyurethane resin, which is essential material to cast tape production.
BSN medical company in Germany has also large market share for splint in the world, since BSN has the patent right for roll type of orthopedic splint, which is essential material to splint production.
| MANUFACTURERS | COUNTRY | SHARES | REMARKS |
|---|---|---|---|
| 3M | USA | 60% | |
| BSN | Germany | 13% | |
| LOHMANN | Germany | 9% | |
| DEPUY | USA | 12% | Merged by BSN |
| OTHERS | Japan, Korea | 6% |
● MARKET TREND OF CAST TAPE
As shown in Table below the use of cast tape in stead of GIPS increases in most countries, especially in developing nations and market trend of cast tape is sharply expanding because of salient advantages in use.
Country/TrendNorth AmericaLatin. AmericaEuropeAsia/PacificJapan/KoreaOthers
Country/TrendNorth AmericaLatin. AmericaEuropeAsia/PacificJapan/KoreaOthers
| Country/Trend | North America | Latin. America | Europe | Asia/Pacific | Japan/Korea | Others |
|---|---|---|---|---|---|---|
| Cast(%) | 74 | 13 | 34 | 17 | 95 | 3 |
| GIPS(%) | 26 | 87 | 66 | 83 | 5 | 97 |
