Client Context
Our client planned to establish a steel drum manufacturing footprint to serve chemicals, agrochemicals, petroleum, and food-grade liquid markets across North and Latin America.
Problem Statement
The investment decision carried significant risk due to:
- Variability in country-level demand density
- High logistics costs for cross-border distribution
- Regulatory complexity for hazardous goods packaging
- Established supplier relationships in mature markets
Proton needed clarity on:
- Which country offers the optimal balance of demand, cost, and market access?
- Which customer segments can anchor early production volumes?
- What is the realistic volume ramp-up over five years?
FMI’s Research Approachs & Analytical Framework
Approach 1: Country-Level Demand Construction
FMI linked:
- Chemical and agrochemical production volumes
- Export flows of liquid commodities
- Packaging consumption coefficients
- Drum reuse and reconditioning rates
Approach 2: Cost & Feasibility Modeling
Mapped:
- Steel coil sourcing and pricing
- Energy, labor, and compliance costs
- Logistics and port access
- Tax and incentive structures
Approach 3: Competitive & Buyer Mapping
Built:
- Supplier footprint maps
- Buyer concentration and contract structures
- Reconditioning and pooling networks
FMI’s Approach to Delivery
FMI delivered a board-ready market entry blueprint with:
- Location optimization models
- Financial sensitivity scenarios
- Anchor customer pipeline
- Phased capacity expansion roadmap
Results, Impact & Value Delivered
- Identified Mexico as the optimal manufacturing hub
- Secured priority buyer segments in chemicals and agrochemicals
- Reduced capital risk through validated demand and cost modeling
- Strengthened funding and investor confidence
