Urban Reblokd inc

We here at Urban Reblokd are looking to raise $7.8 Million for the first phase of our facility.  Once the facility is fully operational we will have a revenue stream of over $50 Million a year with around $20 Million being profit.  Please feel free to reach out for more information as we have had a third party Feasibility study performed on the project as well as financials.

EXECUTIVE SUMMARY

Urban Reblok’d is going to reduce the amount of plastic that goes into the landfill.  Currently there is over 37 MILLION tons of plastic produced each year, of which only about 9% is actually recycled.  A basic plastic water bottle can take up to 450 YEARS to fully decompose in a landfill, and throughout the time it is decomposing it is slowly leaching microplastics into the environment.  

There are two parts to our current endeavors.  The first part is taking agricultural plastic film and cleaning and converting it into pellets for use by any business that uses LDPE/HDPE plastic pellets to make their product.  We are working with Renu Environmental (who supplies all the paperwork for plastic credits).  They want a facility that can handle 5000 tons a month of agricultural film. The credits and sale of the pellets will generate the bulk of the cash flow from the business initially.

The second part, and close to our heart, is the recycling of residential mixed plastic waste.  Currently only number one and two plastics are generally being recycled.  We have a process that recycles all types of plastics.  It does not need any presorting as it is expecting mixed types of plastics.  We will be using a machine designed and produced by us at Urban Reblok’d.  This machine will mold and form 22 pounds of plastic waste per block into a solid standard cinder block size.  Not a single ounce of plastic waste goes back into the landfill, all of it gets used in the block.  We would be able to initially divert 250 tons a MONTH (our current contract with Recycling and Disposal Services–RDS) that would have otherwise gone to the landfill into a usable building material.  We are in discussion with a number of other large businesses in Virginia and North Carolina where we could increase this by ten times very quickly if we had the facility to actually handle that volume of plastics.

While cinder block replacements is where we started (a tried and true process exists with patents expired). We plan on expanding our offerings into replacements for 2x4s, 4x8 plywood sheets, and railroad ties.

Our end goal is to be able to provide a better and more reliable product to contractors, national/state/city governments, and individuals.  And through doing that we are going to be reducing the amount of plastic waste going into our landfills by hundreds of thousands of tons in a very short time.

With this business we have decided to handle 2 of the 4 parts of the plastics recycling business:

Plastic Processors - We are going to be taking the plastic waste from MRF’s (Municipal Recycling Facilities) and municipalities/governments that they are not able to do anything with.  We will be processing it all together, shredding it, cleaning it, and then off to the manufacturing line.

Plastics End-Users - We will be manufacturing all the waste plastic into consumer ready and usable building materials. These can be sold to hardware businesses, or it can be sold back to the municipalities/governments for use in their building needs.

THE PRODUCT

We will be pelletizing the agricultural film for use by other businesses. While we could use it in the Reblok process it is single type plastic (needed by most businesses in their own processes).  Reblok is designed for mixed plastic not single type plastic so would not be the most efficient/effective use of the agricultural film pellets.

The product that is being produced is called a “Reblok”.  The block is of similar dimensions to a standard cinder block, 15.5” length x 7.75” depth x 8” height.  It weighs 22 lbs (which is about 16 lbs less than a standard cinder block)  and the density of the block can be customized.  The block is not susceptible to cracking or crumbling, although if left in direct sunlight it is susceptible to color degradation.  If the block is painted or otherwise covered it will last far longer than a traditional cinder block.  During the creation of the block it emits 83% LESS CO2 emissions than traditional manufacturing of cinder blocks.  There are no glues or adhesives used, just superheated plastic fusing together to create one strong block.

These Reblok’s would be sold to the public for $15 a block.  We would sell these wholesale for $6-$10 a block.  These blocks can also be slightly customizable in coloring.  For an added cost (and some lead time) we could make sure that they are all solid black or any other common color.  That additional cost would be $5.00 more per Reblok retail and $2.00 per Reblok wholesale.

The use of often un-recyclable plastics in the production of these blocks will be a huge win for not only the environment, but also for the cities/municipalities that send their waste to us.  They will be reducing the volume that would be going into the landfill and also conforming to our local Virginia DEQ standards.  

THE MARKET AND MARKETING PLAN

LDPE/HDPE plastic pellets are used by most businesses that create plastic products. These would be the target market for the end product of the agricultural film processing.  Most use virgin pellets but there is currently significant push to use at least some recycled plastic. Companies like Trex use purely recycled plastic and may be large enough to absorb most if not all of the production.

Seeing as we would be providing governments with a service and having all the plastic waste that would have otherwise gone to the landfill sent to us (at a cost to the sender), we would be able to keep costs low to mainly overhead and labor costs.  That would help us to keep our product very competitive.  Currently there are very few local options for recycled plastic blocks, and the ones that are available are quite expensive.  We are in a time where plastic recycling, consumption, and waste is a very hot issue, and we are the solution to it.  There are a lot of companies out there that claim to recycle all types of plastic, but very few actually truly do.  With the “Reblok’d” machine we truly would be able to do just that, making us and our product stand out.

Our initial research has shown that the market is poised to explode on recycled plastic products, if the pricing is right.  And that is something that we can meet.  The current global demand for the product that we are producing is huge.  In the construction and building materials category for recycled plastics it is almost ⅔ the total market.  A market of 46.1 billion dollars in 2021 per a study by (https://www.grandviewresearch.com/industry-analysis/recycled-plastics-market).  Also in the data collection from that same study, they detail out several of the specific types of plastic that are readily recycled.  Then they have a section for “other” plastics, and that is only close to 10% or less of the overall recycled plastics.  Also from a study done by (https://www.statista.com/chart/18064/plastic-waste-in-the-us-municipal-solid-waste-disposal/) their research from all the way back in 2015 shows over 26,010,000 tons of plastic went into our landfills nationwide.  All of that plastic that went into the landfill that way could have been used to create these blocks for construction use.  If all of that waste was converted into these blocks, that would be over 2.3 TRILLION blocks.  That would be a good step towards helping with the building material crisis as well as potential public housing for cities that are having issues with homeless populations.

Our marketing strategy would be thus:

THE PRODUCTION PLAN

This endeavor calls for a 200,000 sq ft minimum building (would need 25+ acres if the building is that small to begin with).  It would need to be warehouse style with high ceilings. We would initially start with only two shifts for the agricultural film and one for the mixed plastics, but as feedstock increased then the shifts would increase on the blocker side.  We only need 2-4 employees to run each blocker system.  We would run a first shift only until the feedstock increased, then we would increase it to two shifts.  To handle the ag waste we will need to run 1 shift with 25+ employees at first, and which would grow to 2 shifts with a total of 50+ employees needed once we hit the capacity of 5,000 tons a month of agricultural film waste.

THE FACILITY

Depending on what we are able to acquire it will dictate/change how things are rolled out.  The space needed for the agricultural film is around 100,000 sq feet as the intention is to immediately build it out to the 5,000 tons a month that Renu Environmental feels they can supply. 

The space needed for the Reblok’d system initially is only about the size of a shipping container.  It is of a modular build so we can add to the system, build more production lines, or have a larger system installed depending on space.  Storage of the Reblok’s needs to be covered and out of direct sunlight to avoid color degradation of the blocks.  We will have outside dump areas for the incoming feedstock to be stored prior to use.

The facility would be heated with radiant tube gas heating in the winter and have large fans and ventilation for the summer.  For the offices, break room, and restrooms would have central heat and air provided.

The facility would need a number of docks as we would be getting 10-20 trucks a day bringing in agricultural film and five or six trucks a day taking out plastic pellets. On the Reblokd side of the equation there would be similar needs once it grew to a similar size but initially we would need one dock at the start and one dock for loading the end product. While in general these should not be the same dock initially we could get by if they were.

THE COLLECTION OF FEEDSTOCK

For the agricultural film we would be getting that from farms and orchards that use the film and need to change it out. Renu Environmental will set up contacts. Due to the nature of this industry they will not be paying us to take their film (credits will pay very well) and we might have to pay for shipping the film to our facility depending on how negotiations go.

For the mixed plastics we would be receiving all the feedstock via governments/municipalities or from individual companies looking to get rid of the waste plastics.  Seeing as the feedstock that we are using would be sent to the landfill as it is we would charge by the ton based on what they are currently paying to dump at the landfill.  That is VASTLY better for the environment than having it sent to the landfill (and not more costly to the government/company). It also reduces the worry about contamination and buying more land for the landfill.

This is what we would expect to receive (if ALL plastic is fully recycled) from the following localities once setup is complete and negotiations are finalized: estimated in tons per month

Roanoke city - 435

Salem - 110

Blacksburg -198

Christiansburg - 99

Radford - 72

THE STAFFING PLAN

This facility's staffing plan will be two-fold seeing as there are two separate segments of the business.  

The agricultural waste would require 20-25 people for 1st shift and 15-20 people for 2nd shift to operate the 18 lines necessary to handle 5000 tons of agricultural film a month, cleaning and converting it into pellets for use by any business using LDPE/HDPE plastic pellets in their business.

The Reblok’d production line would be 1 shift initially and grow as needed. The production line would run 5 days a week Monday to Friday to start and then expand to Saturday’s if needed. This would take 2 to 4 operators per line per shift.

Overall staffing:

Plant Manager

Maintenance 

Sales rep

Shift Supervisors

Operators

THE MANAGEMENT TEAM

Joseph Brozovsky would be running and managing this facility.  He has 9 years experience in running and managing another business successfully (uCell2us Inc).  He is bringing desire and drive to this facility to push this project above and beyond what is to be expected.  His mission with this company is to build it to a point where within the first year of full production, 10% of all Reblok’s made are donated to charity projects/community projects locally, extralocal, and even internationally.

THE BOARD OF ADVISORS

Colin Campbell:

Colin Campbell is a Mechanical Engineer (BSME, Virginia Tech) licensed in the state of Virginia and has been a consultant to various machinery design industries for over 20 years. He's the owner of Enginuity Tech LLC, a Virginia-based design firm that specializes in helping companies overcome design hurdles and get through bottlenecks. He has also been a part-time pastor in his church for several years. He grew up in the Roanoke area and lives in Roanoke City with his wife and children.

Dan Coy:

Dan Coy offers a wealth of experience in shaping organizations through leadership building, networking, and creative strategies. He continues to serve in ministry and business where he impacts new generations everywhere with the story of Jesus and has built strong partnerships with missionaries and their organizations around the globe to build the Kingdom of Christ. Dan is a devout family man, loving his wife of 36 years, their two married children, and spouses along with 6 amazing grandchildren. The frontier of entrepreneurial ministry and business is where Dan spends his energy helping people find their fit in life while pursuing their dreams and calling. 

John Brozovsky:
John Brozovsky is a retired accounting professor from Virginia Tech.  Through his financial and numbers knowledge as CFO he will be able to steer Urban Reblokd in the proper direction to high profitability. 

POTENTIAL RISKS AND PROBLEMS

There are 3 potential risks that could affect the profitability of this venture.  First is insufficient personnel to operate at full capacity.  Second is supply chain issues. And a distant third is the lack of demand in the marketplace.

Given the financial value of the agricultural film processing the biggest risk is the Renu Environmental can not line up enough agricultural film that needs processing.  This risk is limited in that their pay is dependent on the volume of agricultural film we process.

Personnel are the driving force behind this business like any other.  Without people to run the machines nothing can be produced.  In today's world it is difficult for employers to hire and keep quality people on the job.  We intend on offering competitive and fair wages as well as a comfortable working environment.  We have found in our other businesses that if we treat employees with respect and kindness they are willing to work harder, stay longer, and are willing to turn down other offers for more money but a much worse work environment.  We understand that this is a place of business first and foremost, but the people that keep it running are extremely important and we plan on making sure that they know that.

The current state of the supply chain might become an issue on the back end for us.  Trucking companies are having issues with keeping drivers as well as staying competitive.  We are able to work with all sorts of companies and shop around so we can provide the best shipping price to the end user.  We would also be able to load up the customers' trucks if they were so inclined to provide them at our facility.  With the smaller orders we have found FedEx and the UPS to be rather reliable.

And finally third is lack of demand.  This is a distant third as we are insulating ourselves against the pitfalls that may come in the market.  We would have income streams from many different areas:

We do not see the availability of feedstock for the Reblokd system as being a problem as just having the plastic waste in the landfill is a governmental issue that they are trying to fix.