May 2016
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY ................................................................................. 2
II. BUSINESS DESCRIPTION .............................................................................. 3
III. SHAREHOLDERS OF IDA S.A. ....................................................................... 4
IV. MANAGERS EXPERIENCE ............................................................................ 5
V. SWOT ANALYSIS .............................................................................................. 6
VI. EXTRUSION PROCESS AND
PRODUCTLINE ........................................................................................................... 7
VII. MARKETING PLAN ......................................................................................... 8
VIII. CONTRACTS UNDER NEGOTIAION .......................................................... 9
IX. SALES PROJECTIONS .................................................................................... 10
X. SOTERO PERALTA SALES PROJECTIONS ................................................ 11
XI. FUTURE PROJECTS ....................................................................................... 12
I. EXECUTIVE SUMMARY
In the past 5 years International Dominican Aluminum (IDA SA) has had losses due to
the continuing decline in international prices of aluminum billets (65% of our total cost
of production). Limited cash flow that caused us losses in production because of the
lack of raw materials, maintenance problems with our presses (now resolved), refusing
customers and suppliers of raw material because of the bad experience they had with
the previous company (Aluminio Dominicano, Aldom). This rejection took
approximately 2 years to be overcome. Other reasons are the unfair competition from
the Chinese extrusion producers, which is impossible to compete.
The market for office towers and condominiums in the United States is starting to take
off, especially in South Florida. Pre-construction condo projects from West Palm Beach
to Downtown Miami (80km) amount to 417 towers (see attachement "South Florida
New Condo Projects Chart" CraneSpotters.com 05/09/2016). An increase of 34% in
one year. In the next two years the South Florida projects contracts are valued in more
than one billion dollars in curtain walls, commercial fronts, windows and doors. IDA is
negotiating with the company United Glass Systems (UGS) and Aluminum Specialties
Wholesale Systems (ASW) to guarantee 80% of the total production of IDA SA. The
production or sales is mainly to produce curtain walls, windows and doors trade fronts.
The aluminum industry is going through a restructuring where China is the world's
largest producer of primary aluminum. This is causing the rest of the world to take steps
to become more efficient and profitable. For an aluminum company to be competitive
in this world of drastic changes it has to be as integrated as possible. Therefore, IDA
SA plans in its strategic plan is to produce their own raw material through getting an
aluminum smelter, acquire value added companies in Florida and cut costs with the
purchase of solar panels and produce their own dies.
Founder and COO of Black Pearl Capital. Senior partner of International Aluminum
SA Dominican degree in business administration and international relations. MBA at
London Business School. Former investment executive at Morgan Stanley, Deloitte
and Arthur Anderson.
Founder and CEO of Constructora Delta, Dom Rep.; Member of the Board of
Banreservas (biggest bank in the Dominican Republic.; BSCI, UNPHU, D.R.
The ingot is hydraulically pushed through a fixed matrix section; then cooled,
stretched and cut to the desired size.
The hardened material passes through the powder coating process, then it is packed
and shipped to the customer.
Actual Markets
United States
Puerto Rico
Dominican Republic
HAYCO 5 years
Panama
2017 (650t/month)
Profiles $15,600,000 2,340,000
7,750
Curtain wall and storefronts* $30,000,000 6,000,000
Total $45,600,000 $8,340,000
2018 (700t/month)
Profiles $16,800,000 2,520,000
8,250
Curtain wall and storefronts* $40,000,000 8,000,000
Total $56,800,000 $10,520,000
2019 (750t/month)
Profiles $18,000,000 2,700,000
8,750
Curtain wall and storefronts* $50,000,000 10,000,000
Total $68,000,000 $12,700,000
2020 (800t/month)
Profiles $19,200,000 2,880,000
9,000
Curtain wall and storefronts* $60,000,000 12,000,000
Total $79,200,000 $14,880,000