Integrated Technical & Economic Feasibility Study

Rehabilitation & Operation of Red Brick Factories Complex

In Partnership with the Iraqi Ministry of Industry & Minerals

1. Executive Summary

Major Investment Opportunity

Dar Al-Mazaya for General Trading, Telecommunications, and Contracting presents a strategic investment opportunity to operate an integrated industrial complex for the production of red bricks, blocks, and roof tiles in Iraq. The project is based on a formal partnership contract with the State Company for Glass and Refractories and features a vital logistical location in Anbar (65 Donums), with ready-to-use infrastructure.

The project aims to operate (3) modern production furnaces on a continuous system (30 days/month), achieving a massive production capacity of 540,000 bricks per day to meet the growing market demand and support major reconstruction projects.

540,000 Bricks/Day (3 Furnaces)
1,350 Tons Daily Production (Raw Material)
16.2 Million Monthly Production Capacity
25 Years Contract Duration

2. Market & Demand Study (2025 Update)

Massive Housing Gap:

Statistics from the Ministry of Planning and Construction (2024) indicate that Iraq actually needs 3 million housing units to cover the accumulated deficit. The renewable annual need reaches 200,000 housing units.

Rapid Population Growth:

Iraq records a population growth of about one million people annually, meaning about 150,000 new families enter the housing demand market every year.

New Residential Cities:

The government has launched major strategic projects such as "Al-Jawahiri City" (30,000 units) and "Ali Al-Wardi City", which require the use of high-quality, heat-insulating building materials.

Closure of Primitive Factories:

Strict government directives (Diwani Order 241285) have been issued to close primitive, environmentally polluting brick factories ("Kawar"), creating a supply gap to be filled by modern factories.

Project SWOT Analysis

Strengths:
  • Government partnership ensuring licenses and fuel.
  • Strategic location (Karma/Anbar) connecting Central, Southern, and Western regions.
  • Availability of on-site raw materials (zero transport cost).
Opportunities:
  • Deficit of 3 million housing units.
  • Closure of competitors (primitive kilns).
  • Possibility of product diversification (Bricks, Tiles, Blocks).

3. Geographic Location & Logistics Advantages

Site Data

  • Location: Anbar Governorate - Karma District.
  • Total Area: 65 Donums (Approx. 162,500 sqm).
  • Coordinates: 33.367744, 43.853168
  • Key Landmark: Adjacent to the International Highway.

International Highway Advantage (Logistics)

The factory's proximity to the International Highway is a "lifeline" for the project, offering the following benefits:

  • Transport Ease & Flow: Access for large trucks (trailers) to transport bricks without entering city traffic congestion.
  • Wide Market Coverage: The highway connects the factory directly to road networks leading to Central and Southern Iraq.
  • Cost Reduction: Reducing transport time means lower fuel costs and transport fees.
Factory Location on Google Maps (Karma District)

4. Technical & Production Study

Product Specifications (The Brick)

  • Dimensions: 24 cm x 11.5 cm x 7.5 cm.
  • Weight: Approx. 2.5 kg.
  • Weight Equation: 100,000 bricks = 250 tons.
  • Mixing Ratio: 1 ton Clay + 20% Sand (0.2 ton).

Work System & Capacity (for 3 Furnaces)

  • Work Days: 30 days/month (Non-stop).
  • Work Hours: 12 operating hours/day.
  • Total Production Capacity: 540,000 bricks/day.
  • Material Processing: 1,350 tons raw material/day.

5. Required Machinery & Equipment (Operating 3 Lines)

# Machine Type Quantity Function
1 Wheel Loader 4 - 6 Feeding 3 production lines and material handling in yards.
2 Excavator 2 Working in the quarry to extract double quantities.
3 Dump Truck 6 - 8 Transporting 1350 tons of material daily from quarry to factory.
4 Forklift 5 - 7 Transporting and loading finished bricks.
5 Power Generator (500-1000 KVA) 3 - 4 Ensuring continuous power for furnaces and fans (rotation system).

6. Partnership Structure & Shares (25-Year Contract)

Phase Time Period State Share (of Production) Investor Share (Remaining)
First Start of Year 1 - End of Year 2 2% 98%
Second Start of Year 3 - End of Year 4 4% 96%
Third Start of Year 5 - End of Year 10 5% 95%
Fourth End of Year 10 - End of Contract 6% 94%

7. Financial Study: Capital Expenditures (CAPEX)

Estimated budget for rehabilitation, operation, and modernization of the factory using top-tier global origins (European/Japanese) to ensure high efficiency and quality.

Item Technical Specifications Estimated Cost ($)
Automation & Robot Lines (High-Tech)
  • Full "Robot Machine" system for stacking and handling (German/Italian).
  • Advanced technology to reduce waste and breakage by 95%.
1,800,000 - 2,000,000
Furnace Rehabilitation (3 Lines) Comprehensive modernization of kilns and burner systems using modern technology to ensure high thermal efficiency (fuel saving). 1,000,000 - 1,200,000
Production Lines & Multi-Molds Purchasing Extruders and molds from reputable global origins to produce: Red bricks, Load-bearing blocks, and Roof tiles. 1,200,000 - 1,500,000
Heavy Machinery & Equipment (Modern Fleet) Purchasing new machinery (Caterpillar/Komatsu): Loaders, Excavators, and Forklifts to ensure durability. 800,000 - 1,000,000
Electrical System & Control (PLC) Electronic control panels (Siemens/ABB), high-pressure transformers, and resistant industrial cables. 400,000 - 500,000
Civil & Structural Works
(Rehab & Development of 65 Donum Site)
Maintenance and cladding of production sheds (structures and roofs) - Per Shed 100,000 - 150,000 (Per Unit)
"Epoxy" flooring works and specialized painting for all halls and warehouses (acid and oil resistant). 200,000 - 300,000
Rehabilitation of Residential Building (3 floors - 12 apartments) - First-class finishing. 150,000 - 200,000
Rehabilitation and furnishing of Admin Building (300m² - 2 floors) + Manager Housing (300m²). 200,000 - 250,000
Rehabilitation and equipping of Staff Restaurant and sanitary services. 50,000 - 75,000
General Site Development (65 Donums): Road paving, fence maintenance, and creation of gardens/green spaces. 250,000 - 350,000
Giant Power Generators Diesel Generators (Perkins/Cummins) Qty 2-3 high capacity with sound silencers. 250,000 - 350,000
Note: Highest technical standards were adopted in equipment selection to reduce future maintenance costs and ensure production continuity for 25 years.
Total Estimated Investment Budget (CAPEX) - Premium Category ~ 6,500,000 - 7,000,000 $

8. Monthly Operating Expenses (OPEX) Currency: Iraqi Dinar (IQD)

Calculations for 3 Furnaces (Full Capacity):

  • Total Monthly Production: 180,000 (Per Furnace) x 3 Furnaces x 30 Days = 16,200,000 Bricks.
  • Total Monthly Weight: 450 Tons (Per Furnace) x 3 Furnaces x 30 Days = 40,500 Tons.
  • Material Distribution: 32,400 Tons Clay (80%) + 8,100 Tons Sand (20%).
# Item Calculation Details (3 Furnaces - 30 Days) Monthly Cost (IQD)
1 Clay Material 32,400 Tons × 10,000 IQD 324,000,000
2 Sand Material 8,100 Tons × 5,000 IQD 40,500,000
3 Fuel 30 Tankers × 3,000,000 (Subsidized) 90,000,000
4 Electricity & Water Industrial Tariff 45,000,000
5 Salaries & Wages Technical Staff & Workers (3 Lines) 180,000,000
6 Depreciation & Maintenance Comprehensive Maintenance 45,000,000
Total Monthly Expenses 724,500,000 IQD

9. Profit Analysis & Share Distribution

Investor Net Profit Calculation Formula:

Net Profit = (Total Revenue - State Share) - OPEX
  • Total Monthly Revenue: 16,200,000 Bricks × 200 IQD = 3,240,000,000 IQD.
  • Operating Expenses (OPEX): 724,500,000 IQD.
  • State Share: Deducted as a percentage of Total Revenue (Production).
Phase State % State Share Value (Monthly) Investor Net Profit (Monthly) Investor Net Profit (Annually)
Years 1 - 2 2% 64,800,000 IQD 2,450,700,000 IQD 29,408,400,000 IQD
Years 3 - 4 4% 129,600,000 IQD 2,385,900,000 IQD 28,630,800,000 IQD
Years 5 - 10 5% 162,000,000 IQD 2,353,500,000 IQD 28,242,000,000 IQD
Years 11 - 25 6% 194,400,000 IQD 2,321,100,000 IQD 27,853,200,000 IQD

10. Quality & Safety

Quality Control

  • Periodic testing for compression resistance and absorption.
  • Adherence to standard specifications (24x11.5x7.5).

Occupational Safety

  • Providing protective equipment (Helmets, Gloves).
  • Fire extinguishing systems near tanks.

Strategic Partnership Offer

What Dar Al-Mazaya Provides

  • Land, Facilities, and Government Contract.
  • Official Approvals and Licenses.
  • Raw Materials and Operations Management.

What We Seek in a Partner

  • Funding for Rehabilitation (CAPEX) and Operation (OPEX).
  • Technical Expertise (Preferred).