PlasTech Venture FAQs – Laura Marsiglio, Susan Cheng, Kelly Mulvaney
- How do PET bricks compare to concrete bricks as a building material?
- Our team relied on ASTM Standards used in the construction industry to validate the properties of PET. Using a finite element analysis, PET was predicted to have a compressive strength greater than 12.4 MPa, which is the minimum specified for concrete masonry units.
- Flammability is a concern if using plastic as a building material. What research have you done to ensure it is a safe material?
- Our team is not able to conduct flammability testing in Lehigh’s labs. However, our research indicates that PET is less flammable than other common polymers, evidenced by the use of polyester fibers in children’s pajamas. We have also looked into the possibility of flame retardant additives to increase the safety of the material.
- Are VOCs a concern when using plastic as a building material?
- The chemical structure of PET makes it less likely to release VOCs than other common plastics. In one study, PET was found to have the lowest quantity of VOCs released when exposed to a month of artificial weathering, compared to other plastics commonly found in the recycling stream.
- How do you plan to recruit entrepreneurs?
- We intend to recruit entrepreneurs by utilizing our in-country resources. Our hope is to partner with NGOs that may have insight into the potential workforce. By opening and operating a pilot facility for some amount of time before relinquishing control to entrepreneurs and opening franchise facilities, we will be able to gauge the dedication of potential entrepreneurs. This will also ensure that we recruit individuals who will build a good name for the venture.
- How much overhead will be required in operating the recycling facility?
- An overhead of 2.5 people will be required to operate the facility. We will need a sales person and the facility manager as the full-timers. An additional part-timer will be necessary to assist the facility manager from time to time to manufacture the bricks.
- How do you make sure that an entrepreneur doesn’t take your idea, run with it, and undermine your venture?
- In offering the business in a box product to entrepreneurs, they will have to rely on us to provide: the instruction and training to operate the machines in a safe manner, the machinery itself, and the extensive support network which include suppliers of PET and distributors of the PET bricks.
- How will individuals in the Philippines, which is known to be a low/middle-income country, secure funds for the initial investment?
- We plan to connect potential entrepreneurs with established microfinance institutions in the Philippines and develop a system where we would help guarantee loans and make them less risky for the MFI. MFIs would take a share of revenues the entrepreneurs earn from selling bricks as loan repayments.
- What do the distribution channels for current brick manufacturers look like?
- Prescon, Holcim, and Republic Cement and Building Materials are currently the top three suppliers of cement bricks in the Philippines in terms of sales revenue. One or many of these types of bricks can be found at most construction supply stores in the Philippines. More research needs to be done on how exactly these distribution channels are set in place and if there are any intermediaries that the bricks go through before reaching the end consumer.
- What market validation have you done to confirm consumer’s interest in PET brick?
- We have conducted research on similar existing products in the Philippine market. We found a company known as Green Antz who is producing ecobricks from sachets. Their success story indicates to us that there is a demand for PET bricks.
- How do you plan to enter the market and establish credibility for your brick?
- We plan on launching our first recycling facility in the Summer of 2022 and building a house out of our own PET bricks in order to market our brand, our products, and our credibility in the Filippino market. We will utilize our existing connections and partnerships, such as UPD, to expand our platform.
- How do you plan to source the recycled PET? Is there enough plastic PET to support your production rate?
- We plan to obtain raw materials by having a kiosk in the recycling facility where scavengers/locals come to exchange plastics for money. After reading through a barangay’s waste management plan from one of our connections at UPD, it was found that about 20% of most waste streams are comprised of plastics. which means there is plenty of PET in the waste stream to support our production rate. PET bottles specifically are one of the most valuable forms of plastic in the Philippines and are the most retrieved due to its high predicted value after consumption.
- How much waste can a single facility divert in a year? Are you even going to make an impact on the plastic waste problem?
- A single facility will be diverting 3200 lbs of plastic from the landfill per week. Three years after launching our first recycling facility, we expect to support 20 recycling facilities that will be diverting 64,000lbs of plastic from the landfill per week. Our goal is not to solve the plastic crisis, but to be a part of the solution.
- What is the ROI of your venture? Is the return on investment in a fair time frame that would make it financially accessible to entrepreneurs in the Philippines?
- In our most recent analysis, we concluded that the ROI would be approximately a little over 8 months. Our ROI meets our goal of a max ROI of 12-18 months for entrepreneurs in the Philippines.
- Where will the profit that is generated from your venture go?
- Profit generated from our venture will go towards maintaining the operation of our venture in providing the training, machinery, and support network to entrepreneurs. Profits will also be used to further market the venture to increase the number of recycling facilities in the Philippines.
- What is the processing capacity of your ideal facility?
- The ideal processing capacity of the facility will allow the entrepreneur to achieve an ROI in 12-18 months. With our current estimated processing capacity of the melter, this is a production rate of 13 bricks per hour.
- What are the health implications on the workers who will be operating the machinery and melting the plastic?
- OSHA does not classify PET as hazardous, and it has not been found to be carcinogenic. However, when it is melted, it has the potential to emit small amounts of volatile organic compounds that could potentially irritate people’s eyes, nose, and lungs. To mitigate the risk of worker injury, strict safety precautions will be put in place and proper safety gear will be distributed to workers.
- Why did you take a community-scale approach? (What are the drawbacks of current industrial-scale facilities in the Philippines?)
- The limiting factors of the current industrial recycling systems include their high operating costs, as well as the high costs associated with transporting recyclable materials to the facility. Their size and capacity also require significant initial investments that may take 2-5 years for investors to see a return. We expect community-scale recycling facilities with the most optimal combination of technologies (specifically, the melter) to see a return on their investment in 8-9 months, and the localized facilities would require significantly less transportation and operating costs.
- What is the production rate for your bricks? What does that look like in the impact you are trying to make?
- Our current estimated production rate is 13 bricks/hour with the melter. We have not done in-lab testing yet, so this is subject to change. This production rate will allow one facility to divert 107 tons of plastic per year.
- Which molding will produce the highest throughput? Is this one also the one that is the most expensive? How much energy will your machine use?
- The melter allows for the highest production rate. This method is actually less expensive than larger scale compression or injection machines. The melter uses 1.12 kW of electricity, which is lower than the compression molder our team looked into. Assuming 5 hours of operation, 5 days a week, for 50 days a year, this is 1400 kWh yearly.
- Besides using the PET bricks to construct homes, what other ways can they be utilized?
- During the Venturewell Phase II workshop, we spoke with experts that recommended positioning our products to other markets rather than keeping it limited to just housing materials. We see the potential for these bricks to be used for gardening/landscaping and/or artisan purposes as well.
- How do you plan to scale/expand into other geographic areas to combat their plastic pollution issue?
- In July of 2019, members of our team did fieldwork and found that the entire community was energized by the venture and fully supportive of it. With 897 barangays across Manila, there are tons of opportunities for us to gain traction as a venture, especially since the team was approached by many of these neighboring barangays during fieldwork. Not only this, but other countries with the same issue of excessive plastic pollution could benefit from our approach as well, as community-scale recycling generates extra income opportunities for people in middle-low income countries.