Among the world’s top 10 suppliers of ferrous scrap, according to Metal Bulletin. Scrap metal is obtained from a variety of sources, including industry, home products, automobiles, and international markets, among others. Items from Africa, South Asia, and the Far East are often transported to the United Arab Emirates and subsequently sold as junk throughout the globe.
In the United Kingdom, the British Metal Recycling Association (BMRA) estimates that over 400 million tonnes of metal are recycled each year. Furthermore, as governments and citizens become more environmentally aware, metals have emerged as one of the most important components of landfill trash to be considered. As a result, scrap metal will continue to be in short supply.
If you want to establish a scrap metal recycling company, you need examine three important factors first. These factors include the quantity of scrap metal on hand, the holding space, and the safety precautions in place in that holding area, among others. You must also identify customers in order to grasp their personas and establish your target market in accordance with this information.
In what range does the cost of establishing a scrap metal business fall?
An entrepreneur who is considering opening a scrap metal business has a plethora of choices. Your company may specialise in scrap metal sales and operate a warehouse where recycled metals are sold to scrap metal businesses. Alternative options include concentrating on a particular kind of scrap metal collecting and recycling. Metals are commodities, and their prices fluctuate in response to changes in supply and demand. Most of the time, this is centred on supply and demand forecasts for various kinds of metals a year or more in advance of the actual event.
Overall, this is a fantastic capital-intensive company opportunity. So the initial investment may vary anywhere from a few thousand dollars to hundreds of thousands of dollars, depending on the situation. This company demands a high level of technical expertise, yet it has the potential to be very lucrative. You have the option of recycling copper, gold, lead, nickel, silver, or tin – the decision is entirely up to you. And it all comes down to how well you grasp the business environment.
What is the best way to start a scrap metal company in Dubai?
You may establish your scrap metal business in Dubai and create a reputation for yourself in the industry by following these steps.
1. Thorough market research and analysis
Making a decision on what role you want to play in the scrap metal market is the first step in starting your own scrap metal company. Is it possible for you to gather local scrap and sell it overseas? Would you be interested in importing scrap and then selling it? What plan do you have in place to process the scrap internally? Before beginning, we suggest that you contact with an experienced business expert to ensure that the processes described above are properly set up and functioning properly.
Let us focus on a kind of scrap metal trade that is reasonably simple and that is common in the United Arab Emirates for the purpose of simplicity. Consider the following scenario: your business purchases copper, aluminium, and other metal scraps from recently abandoned houses, as well as waste production metals from power plants. After that, you clean and sort the scrap before shipping it to one of the UAE’s neighbouring nations, where a large portion of the country’s scrap metal ends up as a result of the country’s expanding economic base. All of this information must be gathered via thorough and comprehensive market research and analysis.
2. Identifying a suitable business location.
The cost of constructing your company’s headquarters is determined by a number of different variables. A warehouse or a yard that you are leasing will have an annual rental fee that you will need to consider. A forklift, metal sorting bins, shipping containers, specialised sorting equipment, solid waste management, and other things may also be needed in certain situations. Furthermore, your team will almost certainly be working with a large amount of information that has come from unknown sources. Furthermore, in the event that anything unpleasant happens on your home, it is advisable to invest in security equipment and disaster preparedness measures.
3. Obtain the appropriate licence.
Those who seek for a free zone licence would be restricted to dealing with a small number of businesses that deal with this kind of trash. Consider the importance of following all applicable environmental, preventative maintenance and capital requirements. A free zone licence has many major advantages, the most important of which is the fact that you own your company completely. It is possible to get a local licence via the Dubai Department of Economic Development, but doing so would require the involvement of a local sponsor who will have a 51 percent stake in the business.
When you do business in the domestic scrap market, on the other hand, you will have more choices. Generis Global may act as your sleeping partner, allowing you to retain complete operational control over your business. Keep in mind that, depending on the kind of licence you choose, you will be subject to a variety of different regulations and permissions, depending on the type of scrap metal you handle. These statutes change over time and are subject to ongoing review and revision.
4. Carry out your company’s business operations.
Once you have obtained the required licence and made all of the necessary choices about your business space and corporate structure, you will be ready to begin conducting commercial operations. It is possible to rapidly start your metal scrap business in order to take advantage of regional and worldwide trends with the proper preparation and the assistance of an experienced adviser on your team. South Asia’s economy is growing, and the region is the top destination for UAE scrap, which means there are many export opportunities available. By recycling metals, you will not only profit, but you will also be contributing to make the planet a better place for future generations.
The advantages of starting a scrap metal company in Dubai are many.
1. The conservation of energy
When comparing recycled metals to fresh ore, it is possible to save as much as the following amount of energy:
Aluminum has a 92 percent success rate.
Copper has a 90% success rate, whereas steel has a 56% success rate.
Recycling a single aluminium product, according to the Environmental Protection Agency of the United States, may save enough energy to run a 60-watt light bulb for up to four hours and a half. Because of this, it is a business model that is expected to gain popularity in the near future.
2. Economical advantages
Recycling metal, according to the National Recycling Coalition, generates 36 times the number of employment as sending the same amount of metal trash to an incinerator, and six times the number of jobs as sending it to a landfill. Furthermore, according to the authorities, the recycling sector produces $236 billion in yearly income and employs upwards of a million people worldwide. As a result, it should come as no surprise that the scrap metal business is profitable and full of possibilities.
3. Advantages in terms of the environment
Because it uses less energy than extracting metal from virgin ore, metal recycling helps to conserve natural resources by lowering greenhouse gas emissions and conserving energy use. The production of new metal, as opposed to the production of products from recycled materials, results in much higher greenhouse gas emissions. It is possible that these emissions will have an impact on climate change and hazardous air pollution levels in cities, resulting in respiratory health problems for you and other city dwellers. It is estimated that recycling metal may decrease greenhouse gas emissions by 300 million to 500 million tonnes, according to the Institute of Scrap Recycling Industries (ISRI). The scrap metal recycling company is a forward-thinking strategy that also serves a good purpose at its core.
Consult with Generis Global for assistance.
We, at Generis Global, aim to help your business develop by using our knowledge and your desire to collaborate. Our business consultants have assisted more than 35,000 businesses in establishing a name for themselves in Dubai’s competitive industry. For those considering starting a scrap metal recycling company but are unsure of where to begin, Generis Global can assist you through the process. We will take care of all of your concerns and guarantee that your company creation in the UAE is as smooth as possible. Please contact us right now if you want to get started with your dream company in Dubai.