Abstract of Feasibility Study of

Unsaturated Polyester Resin

1- Introduction:
• Product description:
Unsaturated polyester resins are produced by the polycondensation of saturated and
unsaturated dicarboxylic acids with glycols.
Unsaturated polyester resins form highly durable structures and coatings when they are cross-
linked with a vinylic reactive monomer, most commonly styrene. The properties of cross-linked
UPR depend on the types of acids and glycols used and their relative proportions.
• Application:
The reinforced UPR are used in boat building, construction, transportation, and aircraft and
aerospace industries, and for consumer products, pipes, ducts, tanks, electrical products,
containers, trays, industrial housings, appliance, and miscellaneous items.
In the non-reinforced applications, UPR are used to produce buttons, body putty, clay pipe seal,
synthetic marble, floorings, and other miscellaneous products.

2- Market analysis:

2.1. World, regional and local supply/demand

Production of fiberglass-reinforced plastics is recognized as main consumption area of

unsaturated polyester resins (UPR). Molding components which are products of contact molding,
press molding, resin transfer molding (RTM), and sheet and bulk molding compounding (SMC &
BMC) can be made by unsaturated polyester. Accordingly, Panels, bathroom components and
fixtures in structural and construction applications, pipes and ducts, corrosion-resistant tanks,
marine industries especially boats, electrical components, cars, buses, tracks and trains parts are
major products of unsaturated polyester in field of fiberglass reinforced plastics. Beside these
applications, non-reinforced usage of unsaturated polyester resins includes gel coating, auto
repair putty, and artificial marble. In a total perspective, fiberglass reinforced plastics have a
share of more than 70% of the market of unsaturated polyester resins, and non-reinforced
applications gain remaining less than 20%.

Global consumption of unsaturated polyester resins have been more the 2 million metric
tons in 2002, and is estimated to grow with a high rate of 2-4% till 2006. North America (mainly
US) with consuming one third of world producing UPR is a greatest market, while Western
Europe, Japan and China are the main markets. Considering such a vast market, it is also notable
that the unsaturated polyester resin industry is mature, and critically depends on changing
market demand behavior and its interest toward durable products. Finally, balance of supply
and demand of unsaturated polyester resins in the world is shown as following.
 800

600 Demand Supply

400

200

0
North W. Europe China Japan Asia E. Europe Middle
America (other) East

UPR global supply and demand.

Current consumption of unsaturated polyester resins in Iran is around 19000-21000 MT

annually. This demand is mainly concentrated in fields of water supply and sewage pipes, auto
repair putty, and marine industry. Car manufacturing, gel coating and constructional
applications are other domains of consumption.
Estimations around demand of unsaturated polyester resins in Iran for coming years,
critically depends on developing plans in infrastructure sectors. Replacement of steel pipes with
glass reinforced pipes, shifting to producing boats with fiberglass, using UPR in corrosion-
resistant tanks, and existence of increasing rate of automotive manufacturing including
passenger cars and commercial vehicles are major factors, which affect on consumption growth
of UPR in the local market. In this respect, forecasts analysis for future demand of unsaturated
polyester resins in Iran for a period of five and ten years is shown in following figure in three
scenarios.

Demand (1000MT)
60 57
1386 1391

50

39
40

31
28 29
30 26

20

10

0
Optimistic Average Pescimstic
Scenario

UPR local demand forecast

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2.2. Competitors and their advantages compare to Iran
Concerning world producers of UPR, mostly four producers cover the North American market:
AOC, Reichhold, Interplastic. In Europe also DSM, Total Chemie, Ashland and Reichhold are major
producers.
These world-class producers of UPR have some agents in the Middle East area too.
Reichhold and Scott Boder have their agent in Dubai and American company of Ashland
cooperates with Saudi petrochemical sector in KSA. In Saudi Arabia, SIR Co. has the annual
capacity of 30000 MT for production of UPR and similar resins. Scott Boder in Dubai also can
supply about 18000 MT per year.

2.3. Target Markets

Besides local market analyzed in section 2.1, studies on export markets implies that Eastern
Europe, China and the Middle East could be most potential and accessible export markets (see
below).

Market Creation Potential Markets

High

Middle
East

E.
Market Accessibility

Europe

Japan
Asia China
(other)
Market
Penetration
W.
Europe
N.
Low

America

Limited Markets

- +
Unsatisfied Demand

Analysis of export markets.

2
 E. Euope &Central
Asia

China

Midle East

0 2 4
1000 MT

Potential selected export market.

2.4. Price basis for the feasibility study

Trend of average world price of unsaturated polyester during past years and its future prediction
is as:
$/kg
1.75

1.65

1.55
1.55 1.55
1.53 1.51 1.51
1.52
1.50
1.47
1.45 1.45

1.35

1.25

1.15
1997 1998 1999 2000 2001 2002 2003 2004 2005
Year

Min Ave Max

Sale price prediction for UPR.

Based on these facts, the price, which can be determined for financial and economical
studies, will vary between $1-1.7/kg (depending on the grade) for local market and $1.3-1.7/kg
(depending on the grade) for export.

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3- Technical analysis:
• Appropriate technology acquisition
Generally, commercial UPR are produced currently by.
1- Batch process: a) fusion method
b) Propylene oxide method
c) Solvent method
2- Continuous process: a) glycol method (fusion & solvent)
b) Propylene oxide method

• Process description (Including block diagram)

A simplification of the reactions involved in unsaturated polyester manufacture is presented in
the following diagram.
Unsaturated polyester resins are typically prepared by simple polyesterification in heated, stirred
reactors fitted with packed columns, steam-jacketed condensers and water condensers.
Phthalic resins are usually prepared in one-stage “cooks” with all ingredients charged at once. If
mist of the glycol charge is Ethylene glycol, processing for a typical-maleic resin (in a 1:1 ratio)
requires about 10-14 hours at 150-250 °C, depending upon molecular weight. Certain resins,
such as those based on isophthalic acid, are almost always prepared in two stages, where the
aromatic acid and all of the glycol are reacted until the theoretically correct amount of water has
been collected and an acid number of 10-15 has been reached. The product is then cooled to
below 170 °C and the unsaturated acid is charged. Processing for isophthalic resin can require as
much as 22-32 hours at 180-230°C, depending upon molecular weight. Esterification catalysts
are sometimes used in amounts of 0.02-0.05% of the total charge.

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 Unsaturated polyester Resin Production

SATURATED DIBASIC UNSATURATED DIBASIC GLYCOLS HYDROCARBON

ACIDS ACIDS MODIFIERS

PHTHALIC ANHYDRIDE MALEIC ANHYDRIDE PROPYLENE GLYCOL DICYCLOPENTADIENE

ISOPHTHALIC ACID
CHLORENDIC ANHYDRIDE
ADIPIC ACID
TEREPHTHALIC ACID
FUMARIC ACID DIETHYLENE GLYCOL
DIPROPYLENE GLYCOL
ETHYLENE GLYCOL
NEOPENTYLE GLYCOL
OTHER GLYCOLS

ESTERIFICATION

UNSATURATED
POLYESTER
POLYCONDENSATET

REACTIVE MONOMERS

STYRENE
METHYL METHACRYLATE
VINYL TOLUENE
PARA-METHYLSTYRENE

PROMOTERS/
INHIBITORS, ETC.

CROSS-LINKED
UNSATURATED
POLYESTERS

When the polycondensation is complete (as determined by acid number and the viscosity of a
specimen dissolved in styrene or other organic solvent), the resin is cooled to about 165ºC or
less. Hydroquinone (HQ) or a similar compound is added as an inhibitor and the mix is then
thinned with styrene, which is inhibited with HQ, toluhydroquinone (THQ) or mono-tertiary-butyl
hydroquinone. Occasionally, t-butyl catechol and p-benzoquinone are used as inhibitors.
All steps are carried out under a blanket of nitrogen, carbon dioxide or inert gas. The removal of
the water produced during the reaction is facilitated by a slow stream of inert gas though the
system. Depending on the composition of the “cook,” some operations use organic solvent to
remove water azeotropically, as is common practice in the preparation of alkyd resins.

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 Feed & catalysts & quantities:
Feed & catalysts consumption for production UPR
Consumption
Raw material Supply
(Kg/ Kg at product)
Arak petrochemical
Ethylene glycol 0.029
complex
Hydroquinone 0.0002 Import
Propylene oxide 0.191 Import
Farabi petrochemical
Phthalic anhydride 0.236
complex
Maleic anhydride 0.156 Import
Tabriz petrochemical
Styrene 0.4
complex / Import

• Type & quantities of utilities:

Utilities
Description Unit Annual consumption
Electricity MegaWH 2104
Water m3 102399
Natural Gas Thousand m3 917.4
Gas oil m3 79.2
Petrol Lit 79200

• Land & Labor requirement:

Buildings & Land requirement
Section Roofed area (m2) Open area (m2)
Production 300 100
Warehouse 3000 500
Administrative & Service 280 0
Maintenance & utilities 320 100
Laboratory 80 0
Total 3980 700
Total land = 3.5 * (total roofed area + total open area) = 15400 m2

Operating labor requirement

Sources
Section Total
Engineer Technician Skilled labor Un-skilled labor
Production 28
4 8 8 8
line
Laboratory 2 2 0 2 6
Raw material 12
0 4 0 8
warehouse
Final product 12
0 2 2 8
warehouse
Driver 0 0 10 0 10
Total 6 16 20 26 68

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 Non- operating employee requirement
Section Number
Manager 5
Financial & Administrative 12
Maintenance & utilities 6
Services 12
Total 35

• Plant Capacity:
Plant capacity is 26000 tons/year of UPR via propylene oxide method (Batch process). This
capacity is based on market analysis and potential exports.

4- Financial analysis:

Fixed capital Investment 40849 million Rials + 953000 $

Working capital Investment 74279 million Rials
Production cost 277368 million Rials
Annual sales 299000 million Rials
Internal Rate of Return (IRR) 17.8%
Net Present Value (NPV) 4139 million Rials
Pay back period 5 years and 8 months
Break-even point (BEP) 41.9%
Added Value 49748 million Rials
Percent of added value via production cost 17.9%

5-Conclusions and recommendations:

Feasibility study of unsaturated polyester resins shows that due to developing of UPR industries
its demand will have a growing rate in the market especially in GRP pipes, marine industries, and
Reinforced parts. This plant can produce all types of UPR, Because of the lack of isophthalic and
the need of market to this grade. This study is based on ISO grade UPR production.
As a found result regarding to all market study & technical & financial considerations,
establishment of a plant for production of UPR by private sector is recommended.