new instant coffee letter incl. enclosures

8/10/2019 New Instant Coffee Letter Incl. Enclosures

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Date:

Our Ref.:

To whom it may concern

2006-xx-xx

RZD/KE

Instant Coffee Production Line – Estimate

Dear Sirs,

We are pleased to provide preliminary information on our coffee plants.

Scope of Supply

Niro A/S will provide the capability ofrealizing the bold vision of your new instant

coffee plant with a state of the art productionfacility and the necessary training of staff foroperating the plant, transforming high qualitygreen coffee beans into high quality coffeeextract that can either be freeze dried orspray dried and converted into high qualityinstant coffee granules or powder.

Niro’s concern regarding your future coffeeplant is focused on four main areas:

•

Minimum pay-back time

• High quality coffee concentration,freeze dried or spray dried, capable ofcompeting on the world market

• Protection of environments and totalsafety

• High quality job opportunities for theregion



2

Indicative Prices for Plants Producing Spray Dried Coffee

The price for a process line depends on the size of the plant and the alternatives

chosen. The prices listed below are only approximate and indicate the span between asimple plant and a more sophisticated plant.

Depending on local ambient conditions, the different plant sizes will process the indi-cated amount of green coffee into instant coffee powder/day.

Type Approx. Price

FCA Copenhagen

IC-1257,1503,000

kg/day green coffee givingkg/day instant coffee powder

EUR 5,8 - 8,700,000

IC-250 14,3106,000

kg/h green coffee givingkg/day instant coffee powder

EUR 8,8 -13,000,000

IC-50028,62012,000

kg/day green coffee givingkg/day instant coffee powder

EUR 11,3 - 16,500,000

The above prices cover the process equipment for transforming green coffee beansinto instant coffee powder.

Indicative Prices for Instant Coffee Agglomeration Equipment

The agglomeration section is where the dry coffee powder is agglomerated to largeagglomerated particles of approx 3 mm. This section is available for three differentcapacities, i.e. 150, 300 and 500 kg/h finished product.

TypeApprox. Price

FCA Copenhagen

RWA - 150 150 kg/h EUR 1,500,000

RWA - 250 250 kg/h EUR 2,200,000

RWA - 500 500 kg/h EUR 2,500,000

Indicative Prices for Plants Producing Freeze Dried Coffee

The prices listed below are approximate and indicate the span between a simple plantand a more sophisticated plant.

The different plant sizes producing instant freeze dried coffee (covering Section A – F,Section H – please, see enclosure “Alternative solutions for each plant section) will

process the following amounts of green coffee:



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TypeApprox. Price

FCA Copenhagen

IFC 125 with2 x RAY 75(batch type)

9,0603,800

kg/day green coffee givingkg/day freeze dried granules

EUR 9–13,000,000

IFC 250 withCONRAD 300

(continuous type)

18,8307,900


EUR 16–20,000,000

IFC 500 withCONRAD 500

(continuous type)

30,99013,000


EUR 20,6-25,200,000

Energy and Utility

The total energy consumption from green coffee to finished product, i.e. roasting,extraction, concentration and drying, is summarized in the table below:

Energy and Utility Consumption

Plant Type Size 125 Size 250 Size 500

ICGas*Water

ElectricityIce water***

130 Nm³/h3 m³/h

104 kWh/h40 m³/h

260 Nm³/h5 m³/h

208 kWh/h80 m³/h

520 Nm³/h10 m³/h

415 kWh/h160 m³/h

RWAGas*Water

ElectricityIce water***

32 Nm³/h13 m³/h

50 kWh/h8 m³/h

63 Nm³/h25 m³/h

84 kWh/h15.5 m³/h

125 Nm³/h50 m³/h

167 kWh/h31 m³/h

IFCGas*Water

Electricity**

150 Nm³/h10 m³/h

600 kWh/h

300 Nm³/h17 m³/h

1100 kWh/h

550 Nm³/h25 m³/h

1900 kWh/h

* Gas mainly for producing steam** Electricity mainly for the refrigeration plant*** Recirculating

We are in a position to offer you the assistance of our engineers for supervision of theerection and start-up of the plant. However, the erection of the plant is normally under-taken by local fitters, welders, etc.



4

Labour

Approx. 15 workers and a foreman are necessary to operate the plant in each shift.

Besides you will need some people to take care of the maintenance of the plant andsome unskilled workers for cleaning, loading and unloading during day shifts.

In case you have any questions, please do not hesitate to contact us.

We look forward to co-operating with you.

Yours faithfully,

Niro A/S

Encl.: Niro’s long-term commitment. Alternative solutions for each plant section.Flow sheets Nos. 738506 and 537095 Arrangement drawings Nos. 35023, 35024, 35093, 604411 and 616930



Niro’s Long-Term Commitment

• Minimum pay-back time

• High quality coffee concentration, freeze dried or spray dried able to compete on theworld market

• Protection of environment and total safety

• High quality job opportunities for the region

Minimum Pay-back Time

How many green beans do you need to make 1kg of instant coffee? This is the key

productivity question. Themore coffee flavour andaroma that can be extractedfrom each bean, the moreefficient will the process be.However, that is only halfthe story. Extracting toomuch from each bean willreduce the quality. Abalance must be found.

The modern extraction plantis carefully designed toextract as much solids aspossible from the roastedcoffee beans without com-promising on quality. Niro’sFast Instant Coffee (FIC)plant, for example, worksautomatically to achieve thisbalance and to ensure thatresults are repeatable timeafter time. The process

extracts the aroma fractionat low temperatures, distilsthe aromatic substances,cools and preserves them.The coffee aromatic distil-late is added back into theconcentrated coffee extractbefore drying.



High Quality Coffee

Niro has been designing and constructing coffee plants for almost 60 years. Recently

the company acquired Atlas freeze drying technology, making it the only companyworld-wide capable of supplying complete process lines using either technology. Thisallows us to advise potential and current customers objectively on the merits of alltechnology options, carefully balancing the commercial, technological andenvironmental factors to help manufacturers make the right long-term manufacturingdecisions.

High Quality Coffee Concentration

To achieve the required non-dusty, soluble, flavour and aroma-rich properties requiresthe extract to be concentrated up to 50% solids at a low boiling point and with precise

temperature and pressure control. This is called “single pass” operation. Boiling theextract at high temperature or recirculation causes the formation of non-solubleparticles which must be removed from the concentrate. Any extract lost during thisprocess will reduce the yield.

Modern instant coffee plants perform this concentration process in less than 1 minuteat as low a temperature as possible. Niro’s falling-film evaporator, for example, con-centrates the coffee extract quickly, in a single pass, at low temperature and low steamconsumption, retaining as much as possible of the original coffee flavour.

High Quality Coffee –Freeze Dried or Spray Dried

The way in which a concentrate is dried will determine the properties which the productwill have when used. Its colour, bulk density and whether it produces foam whendissolved may all be affected. There is also a choice whether to produce freeze driedgranules, spray dried powder or agglomerated product.

The freeze drying processrequires the coffee extractto be frozen into hard ice

which is then shaped intothe granular form beforedrying.

Freezing can be by fastfreezing in a thin layer on adrum or slower freezing ina thicker layer on a belt.



The frozen granulated

coffee is freeze driedunder high vacuum atvery low temperature ineither a continuous freezedrier or a batch freezedrier. The gentle dryingprocess is calledsublimation and thisprocess ensures the bestpreservation of the naturalaroma in the final product.

• Single stage spray drying plant

A single-stage spray drying plantwith nozzle atomization is mostlyused to produce a fine powder

product, when top quality tasteand high aroma flavour are notthe prevailing factors.



• Two-stage spray drying plant

A two-stage spray dryerworks at low temperatures.Therefore, it is more energyefficient than a single stagedryer and will producebetter taste and aroma. Italso produces a slightlyagglomerated powderwhich many consumersprefer.

• RWA agglomeration plant An agglomerated product can beachieved to preserve the taste andaroma of spray dried coffee and improveits appearance. Coffee powder treated

in this way does not need pre-grinding –an operation that can adversely affectthe product quality. In this process thepowder is re-wetted and agglomeratedunder carefully controlled conditions. After agglomeration, the product passesthrough a sieve where fines are returnedfor further agglomeration. Correctlyagglomerated product moves on to aVIBRO FLUIDIZER® for drying andcooling.

The choice of freeze dried granules,spray dried powder or agglomeratedproduct is a complex marketing decisionfor all coffee manufacturers.



Decisions are made considering the quality of the green beans available, the yieldrequired and, most importantly, the market demands. Whether to freeze or spray dry isa matter of preference but there is a perceived additional value in the freeze dried

granules, therefore the best quality beans are often reserved for this type of productionprocess.

Protection of Environment and Total Safety

Niro’s long experience in delivering manufacturing plants in countries where safetyissues are ever increasing, guarantees your new Niro plant being well equipped inrespect of environmental sustainability and total safety.

Total safety includes; personnel safety, production safety, investment safety, productquality safety and environmental safety or protection of environment.

Safety is being catered for by implementing well proven technologies together withtailor-made operation manuals making the maintenance task of your Niro plant a dailyand affordable part of the production, thus maintaining a high protection level ofenvironment and of investment.

The picture shows dual heatexchangers for CIP (Cleaning-In-Place) system enablingcleaning while the extractionplant is producing product.

One way of protecting yourinvestment is by producingsales worthy product 24 hoursper day.

The picture shows heat

exchangers for pre-heating feedwater with extract before theextract is cooled for storage.

One way of protecting theenvironment is by capturingenergy from outgoing flows andexchanging it to ingoing flows,thus reducing total energyconsumption.



High quality job opportunities for the region

We assume that 15 to 25 persons (in 3 shifts) are required to run the plant 24 hours per

day, 7 days per week.

These persons are employed directly in the instant coffee plant. Lots of other jobs aregenerated if one may count the persons involved in growing the coffee bushes,harvesting the coffee cherries, transforming them into the coffee beans required at theplant. A total of approx. 9,800 tons green beans per year will be required for producing3,500 tones per year of for example freeze dried instant coffee.

The spent grounds from the instant coffee production can be incinerated to producesteam for the plant. The ashes or spent grounds can be a rich organic fertilizer for thefarmers growing the coffee bushes.

Alternative solutions for each plant section

Investment Choice

The chart shows different processes for the production of different types of convenientcoffee i.e. liquid, freeze dried granules, spray dried powder, and agglomerated powder

instant coffee.We can offermany differentplant types,ranging fromquite simple typesto verysophisticatedtypes, but first achoice must bemade, dependingon the market youwant to penetratei.e.:

1. Investment in a plant producing canned/liquid coffee

2. Investment in a plant producing spray dried instant coffee, with possible additionalagglomeration

3. Investment in a plant producing freeze dried instant coffee

4. Investment in a combination of the three above-mentioned plants



Niro’s core business is the instant process area, but together with our well-knownbusiness collaborators we can supply the entire plant from the green bean and roastingsection to the packing section, including the utility section. If you have engineering

capacity, you may wantto acquire some of thesections yourselves,which is fine with us.

In order to minimize theinitial investment whendeciding to install aninstant coffee plant, Nirohas developed threestandard sizes of instantcoffee plants.

The investment of eachplant size is composed ofa fix cost, which isengineering, supervisionof erection, supervisionof commissioning,

services, licenses, etc., and a variable cost that is material and hardware. Therefore,the plant producing 500 kg instant coffee per hour has the shortest pay-back time orhighest return on investment.

The smallest standard industrial plant we recommend will produce 125 kg/h finished

dry product. Further, we have the following standard sizes: 250 kg/h and 500 kg/h. Assuming the plant will operate 7000 hours / year, the standard plant capacities willrespectively produce 875, 1750 and 3500 tons / year instant coffee powder.

For your information we refer to the standard flow sheets and general arrangementdrawings.

Each plant size is divided into process sections:

A. Green bean sectionB. Coffee roasting sectionC. Roast coffee grinding section

D. Extraction sectionE. Extract concentration sectionF. Extract treatment sectionG. Spray drying sectionH. Freeze drying sectionI. Agglomeration sectionJ. Packing section (jar packing)K. Auxiliary sectionL. Spares



For sections B, D, E, F, G and H different alternatives can be supplied, i.e.:

Section Alternatives

B. Coffee roasting section.For this section, twoalternatives are available.

1. Batch roasting2. Batch roasting with recirculation minimizing

the emission to the atmosphere.

D. Extraction section.For this section, twoalternatives are available.

1. Traditional single-stage extraction with aromarecovery system.

2. Two-stage extraction, automatically operated,fast processing (FIC). This alternative pro-duces an improved quality of extract, rich on

aroma.

E. Extract concentration sec-tion.For this section, three alter-natives are available.

1. Thermal evaporators, falling-film or rotary thin-film evaporators with aroma recovery.

2. Reverse osmosis.3. Freeze concentration. In this process the

aroma loss is almost nil.

F. Extract treatment section.For this section, severalalternatives are available.

Several different alternatives are available. Theextract treatment section is tailored to suit thealternatives described above.

G. Spray drying section.For this section, two alter-natives are available.

1. Single-stage dryer with nozzle atomization.2. Two-stage dryer with nozzle atomization. This

dryer type is working at lower temperaturesand therefore produces a product with bettertaste and aroma. Further, it produces aslightly agglomerated powder.

H. Freezing and freeze dryingsection.For this section, tour alter-natives are available.

1. Batch freeze drying (RAY) with drum freezer(ROTA-FREEZE)

2. Batch freeze drying (RAY) with belt freezer(CAB-FREEZE)

3. Continuous freeze drying (CONRAD) withdrum freezer (ROTA-FREEZE)4. Continuous freeze drying (CONRAD) with belt

freezer (CAB-FREEZE)

Summary of Niro’s Offer

Provided you can sell all the production, the instant coffee plant is above all a businessthat will generate a positive cash flow; the revenue will pay-back the investment inapprox 3 - 4 years, and above all it will create jobs for the area. The implementationhas to be safe, at low risk and have a minimal impact in the ecological environment of

the area.



Niro’s offer meets all these necessary requirements for a plant producing instant coffee- freeze dried or spray dried - to a discerning instant coffee world market.

Niro will provide the long-term commitment to assist in transferring the necessary pro-cess skills to develop the production experience that will generate:

• Minimum pay-back time

• High quality coffee concentration, freeze dried or spray dried able to compete on theworld market

• Protection of environment and total safety

• High quality job opportunities for the region

Niro has the expertise to balance all these key factors to maximize the business benefit

to the investors and we would appreciate an opportunity to present a summary of ourproposal to you, your investors and your authorities at the earliest opportunity.

Based on the above given information we suggest that you consider what type ofequipment is most suitable for your requirements.

In case you have any questions, please do not hesitate to contact us.

We look forward to co-operating with you.

Yours faithfully,

Niro A/S

Brochures are available from the Niro web site on:

http://www.niro.dk/ndk_website/niro/cmsdoc.nsf/WebDoc/ndkk5j9cc7CoffeeCompleteProcessing.

new instant coffee letter incl. enclosures

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