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What Cost Factors You Need to Consider When Building up an Asphalt Mixing Plant Base?

Cost factors boss concern asphalt mixing plant base
Factor 1

Land Costs

The land you need for production not only contains that of the asphalt mixing plant, but also material storage areas, such as aggregate storage areas (for aggregate at different levels) and bitumen storage areas. To obtain a land usage permit, you need to apply and coordinate with the local authority for approval, and then pay the land purchase fee and usage tax according to the regulations. As for China, the ground of asphalt mixing plant base needs to be paved with concrete (In most cases for other countries, it depends and is not a must).The cost of land should be one of the largest expenditures for the construction of asphalt mixing plant.

Cost factors boss concern asphalt mixing plant base D&G machinery plants
Cost factors boss concern asphalt mixing plant base
Factor 2

Administrative Costs

Prior to the construction, it is necessary to obtain the approval certificate from the local safety audit department and the environmental impact assessment (EIA) certificate from the environmental protection department. Also remember to report to the EIA department for EIA acceptance after installation, so as to ensure the compliance of formal production (The approval process may differ from country to country).

Cost factors boss concern asphalt mixing plant base administrative costs
Cost factors boss concern asphalt mixing plant base equipment costs
Factor 3

Equipment Costs

The cost of equipment includes the procurement expense of asphalt mixing plant and ancillary equipment. An asphalt mixing plant is usually equipped with 2-3 loaders, and bitumen storage pools (which will be offered by asphalt mixing plant manufacturers at times). In terms of the vehicles for transporting asphalt mixture, some customers have their own fleets, while others use outsourced vehicles.

Besides, as some countries, such as China’s energy-saving and environmental protection requirements strengthened recently, greenhouses must be built for the storage of aggregate in many areas. It costs approx. CNY 3,000,000 (approx. USD 420,000), depending on the area of aggregate storage. Some of our clients took a more aggressive approach by enclosing the asphalt mixing plant, changing it into a “factory building” that would cost more.

The price of asphalt mixing plants can vary greatly. Taking the conventional model 2000 as an example, the market price ranges from CNY 2,000,000 to 4,000,000 (approx. USD 280,000 -560,000), which mainly due to various differences of different brands, for instance technical features, manufacturing processes, quality of components, stability of equipment operation, precision of measurement, quality of mixture, after-sales service and more. Expenses will further climb if supporting asphalt recycling equipment, environmental protection facilities and additive devices are in place based on the conventional equipment.

Cost factors boss concern asphalt mixing plant base model selection
Model Selection

Generally speaking, 10,000 tons of asphalt mixture is required to lay one kilometer of two-way two-lane asphalt pavement. Customers may decide the specific model as per this calculation and their business.

Cost factors boss concern asphalt mixing plant base Front-of-the-House Equipment
Front-of-the-House Equipment

Mainly includes pavers, planers, road rollers, motor graders etc. Whether to purchase depends on customer’s business as well.

Front-of-the-House Equipment D&G Machinery asphalt mixing plant base
Cost factors boss concerns asphalt mixing plants base Raw Material Costs
Factor 4

Raw Material Costs

Cost factors boss concerns asphalt mixing plants base bitumen
Bitumen:The amount of bitumen used is generally 4% - 5% of the total raw material, and the cost may vary slightly from country to country.
Cost factors boss concerns asphalt mixing plants base aggregates
Aggregates:The price of aggregates in China has soared in the past two years. The market price may be roughly CNY 100 (USD 14) or higher. However, some customers have their own mountains and mines, and the cost is another matter. The cost varies in different countries.
Cost factors boss concerns asphalt mixing plants base filler
Filler:There are two types of filler: new filler and recycled filler. The price of new filler is currently rising, and in some areas nearly CNY200 (USD 14)/ton. Recycled filler is a part of the filler that can be recycled and reused in the production process of asphalt mixing plant. Some countries and regions do not need to add new filler in the production process, and the cost of this part can be ignored
Cost factors boss concerns asphalt mixing plants base bitumen
Cost factors boss concerns asphalt mixing plants base labor costs
Factor 5

Labor Costs

As for a well-managed and highly automated asphalt mixing plant, at least 2-3 staffs are needed, namely operator (act as stationmaster, responsible for mechanical maintenance as well), electrical maintenance personnel, and material management personnel. In China, a good stationmaster's annual income is no less than CNY 200, 000 (approx. USD 27,951). Wages are calculated differently in state-owned and private companies, and the situation varies from country to country overseas.

Cost factors boss concerns asphalt mixing plants base labor costs
Cost factors boss concerns asphalt mixing plants base Equipment Operation Costs
Factor 4

Equipment Operation Costs

Cost factors boss concerns asphalt mixing plants base Spare parts cost
Spare parts cost:The operating cost of a high-quality asphalt mixing plant is very low. Taking D&G Machinery as an example, there is usually a warranty other than replacement parts in the first year, and an annual budget of CNY 100,000-200,000 (approx. USD 13,976-27,951) for spare parts for the next three years should be sufficient.
Cost factors boss concerns asphalt mixing plants base energy cost
Energy cost:Fuel and Electricity.
Cost factors boss concerns asphalt mixing plants base fuel cost for drying and heating
Fuel cost for drying and heating:Diesel, heavy oil, natural gas, coal powder etc. can be used in the production of asphalt mixing plant. The unit price of each type of fuel is different based on the local purchase price; the fuel consumption for different types of equipment and burners of different brands also varies, which should be indicated in the sales materials of the mixing plant manufacturer.Note: If choosing natural gas as fuel, access to natural gas pipelines is a cost that needs to be considered, which differs for each customer due to different geographical locations.
Cost factors boss concerns asphalt mixing plants base D&G Machinery
Cost factors boss concerns asphalt mixing plants base electricity cost
Electricity cost:75% of the total installed load under rated capacity multiplied by the number of working hours and unit price. Excl. electricity consumption for environmental protection facilities apart from the asphalt mixing plant.
Cost factors boss concerns asphalt mixing plants base water cost
Water cost::Mainly take the use of environmental protection facilities and environmental hygiene into account.
Cost factors boss concerns asphalt mixing plants base transportation and stacking materials
The cost of transporting and stacking materials in the production base, and loading and transporting materials for production:mainly consider the expense of using the loader.
Cost factors boss concerns asphalt mixing plants base processing costs of oversized aggregates and waste filler

Possible processing costs of oversized aggregates and waste filler:The cost of land varies in different regions. When the cost is high or your budget relatively low, the land occupation of materials should be a key consideration. Regarding the plant, think about bottom type hot mixture storage bin for direct discharge into trucks under mixer, dust collector above the dryer drum and the vertical bitumen tank to reduce land occupation.

The elimination of the bottom type hot mixture storage bin can reduce the height of the main building packaging for environmental protection requirements, thus cutting the corresponding costs (mainly applicable to Europe and China).

Encapsulating the mixing tower as a part of the asphalt mixing plant can significantly reduce the administrative approval and design costs of the factory building (Mainly applicable to Europe, China, please refer to the picture).

With sufficient electricity at low price, consider electric heating type bitumen tanks and hot oil boiler, so as to worry less about the mandatory safety supervision and environmental protection requirements for those facilities using gas or oil.

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