How to Estimate the Costs of Setting Up an Edible Salt Manufacturing Plant

Amindus Consulting and Solutions
3 days ago
4 min read

Presented by Amindus Consulting and Solutions

Setting up an edible salt manufacturing plant requires careful planning and a clear understanding of the costs involved. From essential machinery to ongoing expenses, every factor influences the total investment. This post breaks down the key equipment needed, the setup and operating costs, and how production capacity, automation, and sanitary standards impact the overall budget.

Whether you are an entrepreneur or investor, this guide offers practical insights to help you make informed decisions about entering the edible salt manufacturing industry.

Eye-level view of industrial salt washing machine in a factory — Salt washing machine in operation

Essential Equipment for Edible Salt Manufacturing

The manufacturing process of edible salt involves several stages, each requiring specific equipment to ensure quality and efficiency. The main equipment categories include:

Washing Equipment

Salt extracted from natural sources often contains impurities like dirt and clay. Washing machines remove these contaminants by rinsing the raw salt with water. Common types include rotary drum washers and spray washers. The cost of washing equipment ranges from $10,000 to $30,000 depending on capacity and technology.

Purification Systems

Purification removes soluble impurities such as magnesium and calcium salts. This step often involves chemical treatment tanks and filtration units. Purification equipment can cost between $15,000 and $40,000. The choice depends on the purity standards required and the raw salt quality.

Drying Machines

After washing and purification, salt contains moisture that must be reduced. Dryers like rotary drum dryers or fluidized bed dryers are used. Drying equipment prices vary widely, typically from $20,000 to $60,000, influenced by drying capacity and energy efficiency.

Grinding and Sieving Equipment

To achieve the desired grain size, salt is ground and sieved. Hammer mills or roller mills are common grinders, while vibrating sieves separate particles by size. Combined grinding and sieving units cost between $10,000 and $25,000.

Iodization Systems

Iodization adds iodine to salt, an essential public health measure to prevent iodine deficiency disorders. This process uses iodization mixers or spray systems. Equipment costs for iodization range from $5,000 to $15,000.

Packaging Machines

Packaging machines fill and seal salt into consumer-ready packs. Options include automatic pouch fillers, bagging machines, and weighing scales. Packaging equipment costs vary from $15,000 to $50,000 depending on automation level and packaging formats.

Setup Costs and Operating Expenses

Beyond equipment purchase, setting up an edible salt manufacturing plant involves several other costs:

Initial Setup Costs

Land and Building: Factory space depends on production scale. A small plant may require 1,000 to 2,000 square feet, costing $20,000 to $50,000 or more depending on location.
Installation and Commissioning: Equipment installation, calibration, and testing typically add 10-15% of equipment costs.
Utilities Setup: Establishing water supply, electricity connections, and waste disposal systems can cost $5,000 to $15,000.
Licenses and Certifications: Obtaining food safety certifications and business licenses may cost $2,000 to $10,000.

Operating Expenses

Energy Costs: Dryers and grinders consume significant electricity. For a medium-sized plant, monthly energy bills can range from $1,000 to $3,000.
Water Usage: Washing and purification require clean water. Monthly water expenses may be $500 to $1,500 depending on local rates.
Labor Costs: Staffing needs vary by automation level. A small plant may employ 5-10 workers with monthly wages totaling $3,000 to $8,000 in third world country.
Raw Material Costs: Salt procurement costs depend on source and quality. Bulk raw salt prices typically range from $50 to $150 per ton.
Maintenance and Consumables: Routine maintenance, spare parts, and chemicals for purification and iodization add $500 to $1,500 monthly.

High angle view of salt grinding and sieving machines in a production line — Salt grinding and sieving machines in operation

How Production Capacity Affects Investment

Production capacity directly influences equipment size, factory space, and operating costs. Small-scale plants producing 1-2 tons per day require less investment but have limited revenue potential. Medium-scale plants with 5-10 tons per day need larger equipment and more labor but benefit from economies of scale.

For example:

A small plant setup may cost $100,000 to $150,000.
A medium plant setup may range from $250,000 to $400,000.
Large plants producing over 20 tons per day can exceed $600,000 in initial investment.

Choosing the right capacity depends on market demand, available capital, and long-term business goals.

Impact of Automation Level on Costs

Automation reduces labor costs and improves consistency but increases upfront expenses. Manual or semi-automatic plants require more workers and supervision but have lower equipment costs. Fully automated lines include robotic packaging, computerized control systems, and advanced purification units.

Automation cost considerations:

Semi-automatic plants save 20-30% on labor but add 15-25% to equipment costs.
Fully automated plants reduce labor by over 50% but increase equipment investment by 40-60%.

Balancing automation with budget and operational needs is key to sustainable edible salt manufacturing.

Importance of Sanitary Standards and Quality Control

Maintaining high sanitary standards is critical in edible salt manufacturing to ensure product safety and compliance with regulations. This affects equipment choice, factory design, and operational procedures.

Equipment made of stainless steel reduces contamination risk.
Clean-in-place (CIP) systems facilitate regular cleaning.
Quality control labs for testing iodine content, moisture, and impurities add to setup costs but protect brand reputation.

Investing in sanitation and quality control may increase initial costs by 10-20% but prevents costly recalls and builds consumer trust.