How To Build A Wood Chip Factory In Indonesia?

Many customers know that Richi Machinery is a large manufacturer of pellet production lines. However, for intermediate products such as wood chips, sawdust, and shavings in pellet processing, RICHI can of course also provide processing solutions and equipment.

Whether you want to use these equipment for sawdust mills, wood chip factories, timber mills, or process sawdust and shavings as animal bedding, we can provide corresponding processing systems and quotations.

The process of building a wood chip factory in Indonesia

Opening a wood chip factory requires market research, determining the site, purchasing equipment, and obtaining relevant certificates, and then recruiting, training, and putting it into operation. Building a wood chip factory in Indonesia requires the following steps:

Market research

Before opening a wood chip factory, conduct sufficient market research to understand the local market demand, wood supply, and competitors. This can provide a strong basis for the positioning and development direction of the wood chip factory.

At the same time, choosing a suitable site based on market demand and its own financial strength is also a key step. Areas with convenient transportation, close to wood sources, and low labor costs are given priority.

Choose a suitable site

Choose a site with convenient transportation and close to the raw material supply site, and consider the water supply and power supply system. At the same time, consider whether the surrounding environment meets environmental protection requirements.

Purchase equipment

Equipment procurement is another important link in the preparation of a wood chip plant. According to the production scale and product demand, it is crucial to purchase suitable wood chip processing equipment.

When selecting equipment, high-efficiency, low-energy consumption and high-quality equipment should be given priority to ensure production efficiency and product quality.

Apply for relevant certificates

In terms of applying for relevant certificates, investors need to apply for business licenses, tax registration certificates, timber business licenses, environmental assessment certificates and fire safety certificates in accordance with local laws and regulations.

The application of these certificates not only helps the company to operate legally, but also guarantees the company's production safety and environmental protection to a certain extent.

• Business license: Apply for a business license from the industrial and commercial department to legally operate a wood chips plant.
• Tax registration certificate: Apply for a tax registration certificate from the tax bureau to pay taxes according to law.
• Timber business license: Enterprises engaged in timber business and processing need to apply for this certificate.
• Environmental Assessment Certificate: Conduct environmental assessment and obtain environmental assessment certificate to ensure that the production process meets environmental protection requirements.
• Fire Safety Certificate: Pass fire acceptance and obtain fire safety certificate to ensure production safety.
• Environmental Protection Approval: Enterprises that have an impact on the environment need to be approved by the environmental protection department and undergo environmental protection acceptance before formal production.
• Equipment Purchase: According to the production scale and demand, choose suitable wood chip processing equipment, such as wood crushers, grinders, cutters, etc.

Employee Recruitment

Hire employees with professional skills, such as wood processing technicians, safety operators, etc. Recruiting and training employees is also a link that cannot be ignored. wood chip factories need to hire employees with professional skills, such as wood processing technicians, safety operators, etc.

During the recruitment process, attention should be paid to the employees' actual operating experience and professional skills. At the same time, employees need to be trained in production safety and environmental awareness to ensure that employees can strictly abide by safety operating procedures and environmental requirements during the production process.

Operation

After completing the above preparations, the wood chip factory can enter the operation stage. Before operation, equipment commissioning and employee training are required, and a detailed production and operation plan should be formulated.

During the operation, attention should be paid to improving product quality and production efficiency, while strengthening marketing and customer service to expand market share and improve corporate competitiveness.

In summary, opening a wood chip factory requires entrepreneurs to have comprehensive market research capabilities, reasonable site selection strategies, scientific equipment procurement plans, standardized certificate processing procedures, and a complete employee recruitment and training mechanism.

Only by doing a good job in these aspects can the smooth operation and sustainable development of the wood chip factory be ensured.

Indonesia Wood Chip factory Case Study

Next, let's introduce "How to build a wood chip factory in Indonesia" based on an Indonesian wood chip factory project we have done.

Project Overview

This is a large Indonesia wood chips factory project with a total land area of 4744.8 square meters. After the project is put into operation, it will produce 70,000 tons of wood chips per year.

According to customer feedback and the profitability of the wood chip factory, wood chip crushers will be added to process sawdust and shavings in the future, or production will be further expanded to add wood pellet production line.

• Project nature: New construction
• Area: 4744.8m2
• Construction content: New construction of a 70,000-ton wood chip production line
• Output: 70,000 tons per year, 28-30 tons per hour
• Project investment: US$110,000
• Employees and work system: The number of employees in this project is 6, and none of them live in the factory. They work 300 days per year, single shift, 8 hours per shift.

Project composition

This wood chip processing project mainly includes the main engineering, public engineering and environmental protection engineering. The project construction content is shown in the table below.

Consumption of raw and auxiliary materials for the project

The main raw and auxiliary materials and energy consumption of the wood chips manufacturing project are shown in the table below.

Main equipment used in this project

The main equipment of this Indonesia wood chips factory project is shown in the table below.

wood chips production Process flow design

1. First, the wood is debarked with a debarking machine, and the debarked wood is conveyed to the slicer by a conveyor belt for slicing.
2. The formed wood chips fall from the discharge port onto the conveyor belt, and the conveyor belt delivers the wood chips to the car.
3. The wood chips produced on the same day are transported to the customer on the same day, and no wood chips are left in the open air.

Analysis of rationality of plan layout

The raw material area of the wood chips production line project is located in the west of the factory, and the production workshop is located in the east of the factory. The rationality analysis of the project plan layout is as follows:

• The raw material area of the Indonesia wood chips factory project is located in the southwest of the factory, the production line is located in the east of the factory, and the finished product area is located in the northwest of the factory.
• The plan layout of the project conforms to the production process and is conducive to the transportation of raw materials and products.
• The plan layout of the project is convenient for production, and the transportation organization between each area is reasonable, which improves the production efficiency of the product and meets the local requirements.

Risk analysis

This project is mainly a wood processing project, so fire prevention should be focused on. The main environmental risk is the occurrence of fire. The raw materials used in this project are logs, so it is easy to ignite a large area, causing serious economic losses and certain air pollution.

Therefore, fire prevention preparations must be made. In order to minimize the probability of accidents, the following measures to prevent accidents and emergency measures after accidents are formulated.

• Management: In accordance with local relevant policies, establish and improve various fire prevention and explosion prevention, production safety regulations and systems, strictly control fire sources and detonation sources, properly handle detonators, and equip various fire-fighting equipment.
• Factory site selection and layout design: According to the isolation distribution of production areas, raw materials and finished product storage areas, maintain sufficient safety distance between each area to ensure safety. In the layout of the factory, maintain sufficient safety distance and fire truck traffic distance.
• Fire prevention: Explosion-proof equipment is used for motors, indoor lighting, etc. to reduce fire hazards.
• Firefighting facilities: The Indonesia wood chips factory is equipped with corresponding firefighting equipment to ensure timely use when accidents occur. Set up fire water pools and special fire extinguishing pumps, preferably close to wood or finished product stacking points for emergency use. Install spark detectors in areas where fires are prone to occur in the workshop to ensure safe production.
• Safety team: Appoint safety management personnel, clarify responsibilities, prevent fires, and ensure safe production. Set up full-time firefighters and dust removal management personnel, and cultivate fire knowledge for all employees.
• In addition, signs should be set up in conspicuous locations to strengthen prevention work, and smoking is prohibited in the workplace to ensure safe production.

The prospects for building a wood chip factory in Indonesia

The prospects for building a wood chip factory are very broad, with many advantages and potential.

• ‌Stable market demand: As a commonly used building and home furnishing material, the market demand for wood chips has maintained a steady growth.
• ‌Policy support‌: The local government will provide a series of policy support for small and medium-sized enterprises, including tax incentives, entrepreneurship subsidies, etc.
• ‌Environmental protection industry‌: With the improvement of people's awareness of environmental protection, green production and clean production have become the mainstream. wood chip factories use environmental protection equipment and processes to reduce pollution to the environment, which is in line with green development policies.
• ‌Complete industrial chain‌: Opening a wood chip factory can establish cooperative relationships with large timber suppliers, construction companies, etc., to form a complete industrial chain and improve market competitiveness.
• ‌Entrepreneurial risk is controllable‌: Compared with other industries, the investment cost of opening a wood chip factory is relatively low, and the entrepreneurial risk is relatively controllable, which is suitable for entrepreneurs with adventurous spirit but limited funds‌.
• ‌Skill training and inheritance‌: Opening a wood chip factory can provide skills training opportunities for local residents and drive more people to join this industry‌.

With the improvement of global environmental awareness, wood as a renewable resource is becoming more and more popular. Wood chips are widely used in many fields such as construction, home decoration, papermaking, etc., and the market demand continues to grow.

Especially in the fields of furniture manufacturing, building decoration, packaging materials, etc., the demand for wood processing products is large and growing steadily.

If you want to build a wood chip factory in Indonesia, whether you want to adopt the traditional wood chip processing solution or the shredding solution, feel free to contact RICHI Machinery to get the wood chip factory construction plan, process design, equipment configuration and a full set of equipment quotation!