NEFTALY RECYCLING (PTY) LTD
1. EXECUTIVE SUMMARY
Neftaly Recycling (Pty) Ltd is a South African waste management and recycling company focused on large-scale collection, processing, beneficiation, and resale of recyclable materials including:
- Ferrous metals
- Non-ferrous metals (copper, aluminium, brass)
- Plastics (PET, HDPE, LDPE, PP)
- Paper & cardboard
- Electronic waste
- Industrial scrap
The business will operate a centralized Material Recovery Facility (MRF) with satellite collection hubs targeting:
- Municipal contracts
- Mining and industrial operations
- Retail distribution centers
- Construction companies
- Informal waste collectors
Vision:
To become one of South Africa’s leading mid-tier recycling processors delivering sustainable waste solutions and measurable ESG impact.
Mission:
To reduce landfill dependency, create jobs, and supply high-quality recyclable materials back into the manufacturing economy.
2. COMPANY OVERVIEW
Legal Structure
Neftaly Recycling (Pty) Ltd – Private Company registered in South Africa.
Location Strategy
- Primary Processing Facility: Gauteng (industrial zone)
- Collection Hubs: Johannesburg, Tshwane, Ekurhuleni
- Future Expansion: Limpopo, Mpumalanga, North West
Ownership Structure
Founder & Managing Director: Neftaly Malatjie
Strategic Investors: (To be introduced during funding stage)
3. MARKET ANALYSIS
3.1 Industry Overview – South Africa
South Africa produces over 108 million tonnes of waste annually, with recycling rates improving due to:
- Extended Producer Responsibility (EPR) regulations
- Increasing landfill tariffs
- ESG pressure from corporates
- Demand for recycled raw materials
Key Demand Drivers:
- Packaging manufacturers
- Steel mills
- Plastic processors
- Export commodity markets
- Construction sector
3.2 Target Market Segments
- Municipalities (waste diversion contracts)
- Industrial & manufacturing plants
- Retail warehouse groups
- Construction & demolition firms
- Informal recyclers (buy-back partnerships)
4. PRODUCTS & SERVICES
4.1 Core Revenue Streams
1️⃣ Scrap Metal Processing
- Ferrous and non-ferrous metal purchase & resale
- Industrial scrap contracts
- On-site container services
2️⃣ Plastic Recycling
- Sorting, washing, shredding
- PET flake production
- HDPE pellet supply
3️⃣ Paper & Cardboard
- Baling and bulk resale to paper mills
4️⃣ E-Waste Recovery
- Dismantling
- Precious metal extraction partnerships
5️⃣ Waste Collection Contracts
- Scheduled industrial collections
- Skip bin services
- Compactor rentals
5. OPERATIONS PLAN
5.1 Facility Layout
Facility Components:
- Weighbridge
- Sorting conveyor lines
- Baling machines
- Shredders
- Storage yard
- Fleet parking & maintenance bay
5.2 Equipment Required
| Equipment | Estimated Cost (ZAR) |
|---|---|
| Industrial Baler | 1,500,000 |
| Plastic Shredder | 950,000 |
| Conveyor System | 1,200,000 |
| Weighbridge | 800,000 |
| Front-End Loader | 1,400,000 |
| 3 Collection Trucks | 4,500,000 |
| Containers & Skips | 1,200,000 |
Total Estimated Capex: ~11,550,000 ZAR
5.3 Staffing Plan (Year 1)
| Position | Number |
|---|---|
| Managing Director | 1 |
| Operations Manager | 1 |
| Site Supervisors | 2 |
| Machine Operators | 6 |
| Sorters | 20 |
| Drivers | 4 |
| Admin & Finance | 3 |
| Security | 4 |
Total Jobs Created: 41
6. REVENUE MODEL
6.1 Processing Capacity (Year 1 Target)
- 1,200 tons per month average
- 14,400 tons per annum
6.2 Average Gross Margin
- Scrap metal: 18–25%
- Plastics: 22–30%
- Paper: 12–18%
- Contracts: 30–40%
6.3 Projected Financials (Conservative)
Year 1
Revenue: R 38,000,000
Gross Profit: R 8,500,000
EBITDA: R 5,200,000
Year 2
Revenue: R 62,000,000
EBITDA: R 10,500,000
Year 3
Revenue: R 95,000,000
EBITDA: R 18,000,000
7. COMPETITIVE ADVANTAGE
- Strategic buy-back partnerships
- ESG alignment with corporate clients
- Scalable processing model
- Centralized logistics efficiency
- Competitive pricing through volume aggregation
8. MARKETING & SALES STRATEGY
Direct Sales
- Industrial contract acquisition
- Municipal tender participation
Strategic Partnerships
- Manufacturing plants
- Retail groups
- Construction firms
Community Model
- Buy-back centers
- Informal recycler integration
- School recycling campaigns
9. ESG & IMPACT STRATEGY
Environmental Impact
- Divert 14,400 tons from landfill annually
- Reduce CO₂ emissions from raw material production
Social Impact
- 40+ direct jobs
- 100+ indirect livelihoods (collectors)
Governance
- Compliance with SA waste regulations
- Transparent procurement systems
10. RISK ANALYSIS
| Risk | Mitigation |
|---|---|
| Commodity price volatility | Diversified material mix |
| Theft | CCTV & controlled access |
| Regulatory changes | Compliance monitoring |
| Cash flow gaps | Working capital facility |
| Supply shortage | Multi-supplier contracts |
11. FUNDING REQUIREMENT
Capital Required: R 18,000,000
Use of Funds:
- Equipment: R 11.5m
- Working Capital: R 4m
- Leasehold Improvements: R 1.5m
- Compliance & Licenses: R 1m
Funding Structure Options:
- Senior debt
- Development finance
- Strategic equity partner
- Asset finance + overdraft facility
12. EXIT STRATEGY
- Strategic acquisition by major recycling group
- Private equity buyout (5–7 year horizon)
- Vertical integration into plastic pellet manufacturing
13. IMPLEMENTATION TIMELINE
| Phase | Timeline |
|---|---|
| Funding Close | Month 1 |
| Site Acquisition | Month 2 |
| Equipment Procurement | Month 2–4 |
| Installation | Month 4–6 |
| Pilot Operations | Month 6 |
| Full Operation | Month 7 |
14. CONCLUSION
Neftaly Recycling (Pty) Ltd presents a scalable, ESG-aligned, and financially viable opportunity within South Africa’s growing waste management industry. With strong operational planning, diversified revenue streams, and structured capital deployment, the business is positioned for sustainable long-term growth and impact.
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