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PRODUCTION OF 100,000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-1 CHAPTER 1: FEASIBILITY STUDY

CHAPTER 1

FEASIBILITY STUDY

1.1

PROCESS BACKGROUND

2-Ethylhexyl acrylate (2-EHA) known as 2-ethylhexyl propenoate, acrylic ester, with molecular weight of 184.28 g/mol. 2-EHA occur in liquid phase as water white liquid with a colorless, acrylic odor, hundred percent volatile and slightly soluble in cold water and also in hot water. 2-EHA is a stable product and to prevent polymerization, 2-EHA will supply inhibited. The characteristic properties of 2-EHA depend upon the monomer and reaction condition that has been selected. 2-EHA is produced by esterification by reacting of acrylic acid with 2-Ethylhexanol in the presence of sulfuric acid as catalyst.

2-EHA used as a monomer in chemical industry for the production of polymers and copolymers. From the actual figures available for 1999, a total amount of 90,000 tonne/annum is estimated to be available on European Union (EU) market and the total EU production volume was 70,000 tonne/annum (Risk assessment report 2-EHA, 2005).

The actual specifications of the commercial product are assay, 99.5 wt% min; water, 0.05-0.10 wt% max.; acidity (as acrylic acid), 0.009 wt% max.; hydroquinone (inhibitor), 40- 160 ppm and monomethyl ether of hydroquinone (inhibitor), 10-220 ppm and has a purity of more than 99% and also containing several impurities such as 2Ethyl hexanol, acrylic acid, methacrylate and water .

The goal of this project is to design equipments and processes for a large-scale chemical industry for producing 2-Ethylhexyl acrylate with minimum production rate of 100,000 metric tones/year. The maximum fund provided for the project is RM200 million.

PRODUCTION OF 100,000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-2 CHAPTER 1: FEASIBILITY STUDY Besides, the objective of the design is an environmentally friendly, safe, the most important economically

profitable 2-EHA production plant. The project is divided into five interrelated parts: process design, market analysis, site selection, environmental and plant safety, and plant economics. The process design sections include the thermodynamic system, kinetic data, mass balance, and energy balance and process simulation.

The market analysis section includes the determination of the optimal condition of the plant as well as an investigation of the demand analysis of 2-EHA. The plant safety and environmental consideration section includes an evaluation of all waste stream along with waste treatment, a detail hazardous operation study of PFD based on material safety data sheet of material, intermediate, byproduct and product. The last section is plant economics include a detail economic analysis comprising total capital investment, net present worth and other major economical variables.

The Uses of 2-Ethylhexyl acrylate The main applications of 2-EHA are used in the production of polymers and copolymers. In the production of resins, 2-EHA is used for pressure-sensitive adhesives, latex, paints, textile and leather finishes and coatings for paper. For an adhesive, the basic composition of general purpose tape are 75% 2-EHA, 20% vinyl acetate, 4% acrylic acid and 1% N-methylolacrylamide (Temin, 1990). Acrylic polymers have good water resistance, low temperature flexibility and excellent weathering and sunlight resistance when it is used in latex paint formulations. 2-EHA also used as a co-monomer in solution polymers for industrial metal finishing.

The minor application of 2-EHA is used as a reactive building block to produce polymer coatings, adhesives, sealants and plastics additives such as in latex paints, textiles finishes, paper coating and other surface coating formulations as shown in Figure 1.1. The major consumption of acrylate ester is in manufacture of surface coating follow by adhesive and sealants. In combination with other acrylic monomers, 2-EHA can be polymerized by itself. The water resistance, weather ability, and sunlight resistance of the final product can improve in presence of 2-EHA.

PRODUCTION OF 100,000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-3 CHAPTER 1: FEASIBILITY STUDY

Figure 1.1: U.S. Consumption of Acrylate Ester in year 2006. (Source: DOW™ 2-Ethylhexyl Acrylate)

Ultraviolet-curable coatings is also one of the application of 2-EHA excluding solvent which supply a glossy, abrasion-resistant finish like on book covers and record albums. Formulation of ultraviolet-cured usually may include 20% trimethylpropane triacrylate, 70% acrylated polyurethane oligomer, 10% 2-EHA diluents monomer and little amounts of photo initiator. A liquid coating or ink is widening on the surface of the substrate and then exposed to ultraviolet light for less than 1 second and is totally cured.

The estimated distribution of uses of acrylic esters are shown in Table 1.1. The major applications of acrylic ester are in manufacture of surface coating follow by textiles. USA is the major consumption of acrylic ester in manufacture of surface coating compare with Japan and Western Europe.

PRODUCTION OF 100,000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-4 CHAPTER 1: FEASIBILITY STUDY Table 1.1: Estimated distribution of uses of acrylic esters (% of total) (Ohara et al, 1985). Use Surface coating Textiles Acrylic fibers Adhesives Other Japan 34 16 14 20 16 Western Europe 35 18 7 15 25 USA 42 23 6 5 24

The world consumption of commodity acrylate esters in year 2006 are shown in Figure 1.2. United State has a major consumption of acrylate ester follow by Western Europe and other Asia.

Figure 1.2: World Consumption of Commodity Acrylate Ester in year 2006. (Source: http://www.sriconsulting.com) From a volume standpoint, esterification represents one of the most important reactions of the chemical industry. The number of different esters produced for commerce by over 100 manufactures probably exceeds 500. Table 1.2 shows the United State production, sales volume and value of selected ester in year 1979.

PRODUCTION OF 100,000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-5 CHAPTER 1: FEASIBILITY STUDY

Table1.2: 1979 U.S Production, Sales Volume, and Value of Selected Ester (Mcketta, J.J., 1996) Production Million lb Plastisizers: Phthalates Adipates Rimellitates Solvents: Ethyl acetate n-Butyl acetate Propyl acetate Monomers: Ethyl acrylate Butyl acrylate 2-Ethylhexyl acrylate Surface-active agents: Carboxylic esters Pesticides : Octyl-2,4dichlorophenoxyacetate 8 9 7 254 196 133 316 297 68 148 157 58 50 60 26 262 139 51 156 119 51 25 35 15 1290 75 20 1232 64 18 455 35 10 Million lb Sales Million $

PRODUCTION OF 100,000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-6 CHAPTER 1: FEASIBILITY STUDY

1.1.1

AVAILABLE PROCESS

1.1.1.1 Esterification Process Esters are most commonly prepared by the reaction of a carboxylic acid and an alcohol with the elimination of water. The reaction is generally characterized by high yield with few side reactions. Other methods for ester formation utilize carboxylic acid derivatives such as acid anhydride, acid chlorides, nitrile, and amide. Ester can also be produce from unsaturated hydrocarbons and aldehydes.

From a volume standpoint, esterification represents one of the most important reactions of the chemical industry. The numbers of different ester produce for commerce by over 100 manufactures probably exceed 500. These materials cover a broad range of uses and include plasticizers, flavors and fragrances, pesticides, solvents, monomer for resins and high molecular weight polymer.

The acid catalyzed reaction of a carboxylic acid and an alcohol to form an ester and water is a reversible process. In the reaction of acrylic acid (AA) and 2-ethyl hexanol (2-EH), C2H3COOH + C8H17OH ↔ C11H20O2 + H2O

The rate of esterification can be represented by k[C2H3COOH][ C8H17OH], where the quantities within the brackets represent the molar concentration of the reacting species, and the rate of hydrolysis by k’[C10H20O2][H2O]. Thus, if the concentration are those at equilibrium, then

1996)..1 95.3 shows the effect of reactant ratio on conversion to ester for different values of K (Mcketta.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-7 CHAPTER 1: FEASIBILITY STUDY k[C2H3COOH][ C8H17OH] = k’[C11H20O2][H2O] and k k' K [C11 H 20 O2 ][ H 2 0] [C 2 H 3 COOH ][C8 H 17 OH ] The constant K is called the equilibrium constant of the reaction. K 5 5 5 1 5 10 Mole ratio of reactants Theoretical conversion(%) to ester at equilibrium 69.9 Reaction Mechanism Fischer esterification involves the formation of an ester from a carboxylic acid and an alcohol. Table 1.PRODUCTION OF 100.5 97. An alternate method of ester formation involves the use of the carboxylate anion as an SN2 nucleophile upon a primary alkyl halide. The reaction mechanism for this reaction has several steps: . the equilibrium constant is essentially independent of temperature.J. The heat of reaction for many esterifications is near zero or at least quite small. Table 1. The value of K will depend on the particular carboxylic acid and alcohol and is determine experimentally by allowing the reaction mixture to reach equilibrium and analyzing for reactant and products. J.3: Effect of Reactant Ratio on Theoretical Conversion to Ester for Different Values of K Equilibrium constant. The mechanism is an acid promoted acyl substitution. For this reaction. which results in the substitution of an alkoxy group for the hydroxyl portion of the carboxyl group.

wikipedia.3: Reaction Mechanism (Source: http://en. Loss of water from this oxonium ion and subsequent deprotonation gives the ester.org/wiki/Fischer%E2%80%93Speier_esterification) Side reaction Side reaction is an unwanted chemical reaction taking place that diminishes the yield of the desired product. A generic mechanism for an acid Fischer esterification is shown in Figure 1. The carbonyl carbon is then attacked by the nucleophilic oxygen atom of the alcohol Proton transfer from the oxonium ion to a second molecule of the alcohol gives an activated complex Protonation of one of the hydroxyl groups of the activated complex gives a new oxonium ion.PRODUCTION OF 100.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-8 CHAPTER 1: FEASIBILITY STUDY Proton transfer from acid catalyst to carbonyl oxygen increases electrophilicity of carbonyl carbon.3. Figure 1. Side reaction occur during esterification reaction are: First side reaction is reaction between diacrylic acid with 2-ethylhexanol .

the water layer is withdrawn from a decanter while the organic layer is returned to the column. but also the solubilities of the alcohols and ester in water. This is done by removing one or both of the products. It will also be necessary . we assume no second and third side reaction.2 General Process Description for Esterification Since the esterification of a carboxylic acid with an alcohol is an equilibrium reaction. In practice.1. In either case.0004 respectively. this is almost always achieved by azeotropic distillation. the reaction will proceed since water is removed from the reaction mixture. it is necessary to displace the equilibrium in order to obtain high conversion. The actual operating conditions will depend on the carboxylic acid and alcohol used. this is because the raw material supply contains acetic acid and propionic acid with mole fraction of 0. Not only must the boiling points and compositions of the binary azeotropes be considered. an inert liquid such as toluene can be used to form a binary azeotrope with water. After condensing the vapors. Since the fraction is small.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-9 CHAPTER 1: FEASIBILITY STUDY 2C2H3COOH + C8H17OH ↔ C6H8O4 + C6H16 + H2O Second side reaction is reaction between acetic acid and 2-ethylhexanol C2H4O2 + C8H17OH ↔ C10H20O2 + H2O Third side reaction is reaction between propionic acid and 2-ethyl hexanol C3H6O2 + C8H17OH ↔ C11H22O2 + H2O For second and third side reaction. 1. Should be the alcohol be nonvolatile or fairly soluble in water.1.PRODUCTION OF 100. In the production of nonvolatile esters-for which the alcohol is not appreciably soluble in water-the water may be removed as the alcohol-water azeotrope. The process can be run under pressure or under reduce pressure in order to maintain the desired reaction temperature and reflux of the alcohol.001 and 0.

In this case both products of the reaction are removed which allow the esterification reaction to proceed. In addition they may form ternary azeotropesgenerally the lowest boiling-with the alcohol and water.1. are condensed.. For these system the ester. 2003) . water and alcohol of the approximate ternary concentration distill through an efficient column.PRODUCTION OF 100.1 Batchwise Esterification To reaction NaOH Water 2-ethylhexyl acrylate Extraction column Distillation column Distillation column To reaction Heavy products H2SO4 Hydrolysis reactor Waste aqueous liquours NaOH Figure 1.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-10 CHAPTER 1: FEASIBILITY STUDY to check for binary and ternary azeotropes involving these inert liquid for the particular system. Many of the volatile esters form binary azeotropes with water and with the alcohol from which they are derived. and the aqueous phase-containing some ester and alcohol is removed from the decanter for further separation.2 ALTERNATIVE METHOD 1.4: Batchwise Esterification Process Flow Diagram for Production of 2-EHA (Bessalem et al.1. Separation of the product then becomes a matter of distillation. The organic phase is returned to the column in a batch operation or removed for further purification in a continuous system.2. 1.

Hydrolysis reactor The aqueous phase coming out from separator is then pumped into the hydrolysis reactor where reaction take places to convert 2-ethylhexyl hydrogensulfate to 2- . Extraction column The organic phase is washes at extraction column by using water to remove impurities. The overall efficiency of extraction of the catalyst is 99. Neutralization In the purification stage. The organic phase is conveyed to the extraction column while aqueous phase is pumped to the hydrolysis reactor.5%.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-11 CHAPTER 1: FEASIBILITY STUDY Process Description The batchwise esterification process consists of reaction mixture which is carried out batchwise and then purification section generally carried out continuously. thus equilibrium limited. this exhibits the distinguishing feature of forming an azeotrope with water. This process preferably operates at temperature 70°C to 200°C in the presence of and sulfuric acid as a catalyst. the washed 2-EHA is then being into the distillation column. The esterification reaction basically is reversible reaction. batchwise in a stirred reactor at a specific temperature and pressure. The reaction in the stirred reactor is being catalyzed by sulfuric acid. neutralizer is used to neutralize the acidic entities in the cruse reaction mixture where organic phase and aqueous phase is separate at separator. The aqueous phase at the bottom is passed through the distillation column for recovery of alcohol. In order to shift the reaction equilibrium is by providing excess of esterifying alcohol.PRODUCTION OF 100. Stirred reactor The raw material is esterified.

The 2-EH is purified at the top of the column and waste aqueous liquors are discharged out through bottom stream and then being sent to the biological treatment site. The sodium hydroxide is added to neutralize to pH 8. 3rd distillation column: purification of 2-EHA The purification of the 2-EHA is achieved at 99. 1st Distillation column. The sulfuric acid is added to obtain a molar ratio of the number of H + at least equal to 1.5. 2-EHA obtained at the bottom of distillation column. 2nd Distillation column: To recycle back AA and 2-EH The washed 2-EHA from extraction column is then being sent to the distillation column which it possible to remove unreacted AA and 2-EH which recycled back to the esterification reactor.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-12 CHAPTER 1: FEASIBILITY STUDY ethylhexanol.PRODUCTION OF 100. 2-EH recovery The 2-EH coming out from hydrolysis reactor together with the aqueous solution from extraction column are being into the distillation column to recover 2-EH.7% from heavy products discharge at the bottom of the distillation column. .

000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-13 CHAPTER 1: FEASIBILITY STUDY 1. Reactor heater At the reactor heater. The reaction occurs as shown below: . This process preferably operates at temperature 85°C to 140°C in the presence of and sulfuric acid as a catalyst.. the mixture kept circulating is continuously admixed with acrylic acid.PRODUCTION OF 100.5: Continuous Esterification Process Flow Diagram for Production of 2-EHA (Erpenbach et al.2 Continuous Esterification 2-ethyl hexanol separator 2-ethylhexyl acrylate Distillation column Distillation column Distillation column Sulfuric acid steam condensate Acrylic acid High residue boiling point Esterification reactor Figure 1.1.2. 1981) Process Description The continuous esterification process consists of reactor heater for esterification reaction and purification stage principally carried out continuously.

which purifying the ester obtained at the bottom while at the top.PRODUCTION OF 100.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-14 CHAPTER 1: FEASIBILITY STUDY Azeotrope distillation column At this stage. . The purification of 2-EHA is achieved at 99.6% based on the 2-ethyl hexanol which underwent conversion. Distillation column The 2nd and 3rd distillation column is provided to purification of 2-EHA. the reacting AA and 2-EH in presence of sulfuric acid as catalyst. The alcoholic phase is recycled back to the reaction zone while aqueous phase is send to the wastewater treatment site. The condenser is used to condensing the azeotrope to separate into alcoholic phase and aqueous phase.98% where about 96% acrylic acid underwent conversion or 93. Separator The separator is used to separate the two different layers of alcoholic phase and aqueous phase. distilling off water azeotropically together with 2-EH.

3 Cascade Esterification TO REACTOR 2 DECANTER RAW MATERIAL WATER III PRODUCT I II RAW MATERIALS REACTOR 1 REACTOR 2 DECANTER IV RESIDUES AQUESOUS Figure 1.PRODUCTION OF 100. AA and sulfuric acid (catalyst) fed into 1st reactor while 2-EH fed at the top of distillation column (I). 1999) Process Description The esterification reaction is carried out in a two stage esterification cascade of two reactors which connected with a distillation column (I).000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-15 CHAPTER 1: FEASIBILITY STUDY 1.2. The vapor formed in esterification reactor comprising water fed to the distillation column.. Aqueous an organic phase separated off via respective stream.1. The condensate formed was separated in separator into two liquid phases.6: Cascade Esterification Process Flow Diagram for Production of 2-EHA (Iffland et al. The bottom product from 1st reactor then fed to 2nd .

The water stream containing 30% sulfuric acid was discharged. The pure product 2-EHA was taken off in vapor form and passed through the condenser.PRODUCTION OF 100. The preferred residence time of the reaction region is 2-5 hours. water and the octenes obtained as by product. The optimum condition of the reactor such as temperature (110-130 °C) and operate under vacuum environment of 200-700 mbar. The combined top product was taken off and liquefied and return to the high boiler separation while the viscous residue discharged through the bottom stream of distillation unit. target product. At the top of the column (II). 2nd Reactor For the 2nd reactor is the extension of the reaction to achieve high conversion of the product from the raw materials and recycled unreacted raw materials. The residue which had a high content of sulfuric acid was cracked to form starting material. 1st Reactor At the first reactor where the esterification reaction occurs at the optimum condition of 80-130 °C and operate under vacuum environment of 200-700 mbar.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-16 CHAPTER 1: FEASIBILITY STUDY reactor. The bottom product formed from 2nd reactor comprising 2-EHA. lower boiling starting material and by-products is then fed into the lower part rectification column (II) configured as a enrichment column served for the high boiler separation. product (VII) was discharged comprising 2-EHA. The sulfuric acid content of organic phase was lowered for the cracking by addition of a part of the water esterification. The bottom product from column (II) was discharged and fed into extraction unit. storage stabilizer was injected into the condenser to change process inhibitor to storage stabilizer. lower boiling starting material and by-products. At this stage. This product is then fed into stripping column (III). . The organic phase was taken off and fed into the distillation unit (IV) where product still present and vaporized batchwise.

. 3rd distillation column The third distillation column. also known as stripping column where the product is produced at 98% of high purification and the product produce in liquid phase. At this stage. distillation unit comprising separation and removal residues that cannot utilize further. unreacted materials and by-product are separated from high boiling residues where it is go to the 3rd distillation column whereas high boiling residues go to the distillation unit. unreacted raw materials and catalyst are recovered for further reaction. unreacted materials and by-product.PRODUCTION OF 100. The organic phase contains small portion of product. The unreacted materials are recycled back to the second reactor for further reaction. 2nd distillation column The second distillation column also known as rectification/enrichment columns served as high boiler separation. The aqueous phase discharge off from this equipment can easily discharge to the sewer because it is not containing hazardous materials and also can reuse for further purposes. the crude mixture of product. The high boiling residues from the 2nd distillation column present small portion of target product. Distillation unit At this stage.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-17 CHAPTER 1: FEASIBILITY STUDY 1st Distillation column The purpose of this equipment is to remove water form from esterification reaction and recover organic phase.

inhibitor and solvent are added periodically or uninterruptedly and product is removed uninterruptedly from reaction zone. catalyst.4 Equilibrium Limited Reaction Recycle Product Inhibitor Inhibitor Distillation column Inhibitor Distillation column 2-EH Decanter Purge Organic Inhibitor Aqueous Condenser Decanter Heavies Aqueous Reactor Column E-2 Reactor heater Acrylic acid DBSA Heavies and catalyst Figure 1. the process is conventionally conducted at temperature within the range of from 40 degree to 150 degree C. but below a temperature that causes undue degradation of reactants.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-18 CHAPTER 1: FEASIBILITY STUDY 1. Temperature that are too low result in lower reaction rates and temperature that are too high result in more by-products and have higher corrosion rates.2.1. 2004) Process Description The above process is a continuous process in which the reactants.. .PRODUCTION OF 100. desire product or any catalyst used. In reaction zone.7: Equilibrium Limited Reaction Process Flow Diagram for Production of 2-EHA (Patterson et al.

the product with high boiling residue go into third distillation column for further purification. Overhead stream is to remove co-product (water) from the esterification of acrylic acid and 2ethylhexanol and thus drive the reaction further toward conversion to desire product. Condenser Vapor is introduced into condenser from second reaction zone in order to condense all vapor mixture to form two liquid phases. First distillation column The purpose of this equipment is to separate unreacted reactant with product.PRODUCTION OF 100. condensation and liquid phase separation. unreacted reactant goes back into the reaction zone for further reaction while at the bottom. .000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-19 CHAPTER 1: FEASIBILITY STUDY Reactive distillation column The first reaction zone. The reaction occurs at this stage producing desire product and co-product. Reactor Heater For second reaction zone. The polymerization reaction can be controlled by the use of inhibitors. At the top. may be a single vessel or may comprise two or more discrete vessels. Decanter Two liquid phases formed from condenser are then being separated by using decanter where aqueous phase is recycle back into reaction zone while organic phase is proceed to the next stage of purification section. The overhead stream subjected to rectification or other separation unit operation such as liquefaction. the conversion is small because the purpose is to crack heavies for example Michael-addition heavies which is to vaporize unreacted reactant and product.

7% of product is achieve at the top of distillation column while high boiling residue is separated and remove through the bottom of distillation column.PRODUCTION OF 100. . the purity of 99.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-20 CHAPTER 1: FEASIBILITY STUDY Second distillation column The third distillation column.

Table 1. Sodium Hydroxide. HMME ( shipping inhibitor). directly produce ester Residence times is . Reaction mechanism Complicated reaction and have intermediate by addition NaOH Simple reaction. Acrylic acid. 2-Ethylhexanol. directly produce ester Residence times is 2 to Simple reaction.4 shows the comparison method of production of 2-EHA based on type of process.1. Table 1.PRODUCTION OF 100. phenothiazane and hydroquinone (process inhibitor) Acrylic acid. 2-Ethylhexanol. controllability and safety. phenothiazane (process inhibitor) and hydroquinone(aqueous inhibitor). directly produce ester Residence times is 2 to Simple reaction.3 PROCESS SELECTION AND METHODS COMPARISON Based on alternative method available for esterification. HMME(storage stabilizer) Ethylhexanol. 2phenothiazane and hydroquinone(process inhibitor) phenothiazane (process inhibitor).000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-21 CHAPTER 1: FEASIBILITY STUDY 1. size. 2-Ethyl hexanol. Acrylic acid.4: Comparison method for production of 2-Ethylhexyl acrylate Process Batchwise Esterification Continuous Esterification Cascade Esterification Equilibrium Limited Reaction Type process of Batch Small volume product Continuous Large volume product Continuous Large volume product Continuous Large volume product Raw material Acrylic acid. raw material. processing efficiency.

017 Esterification reactor 3 distillation column 2 decanter Evaporator Total = 7 802.54 Esterification reactor hydrolysis reactor decanter/separator 3 distillation columns Extraction column Neutralizer mixer Total = 8 Catalyst Sulfuric acid effective catalyst corrosive to metal less amount required more undesired side reaction Sulfuric acid effective catalyst corrosive to metal less amount required more undesired side reaction Para-toluene Sulfonic acid more undesired side reaction more amount required compare with sulfuric acid Less corrosive DBSA Less impurities and heavies Higher efficiency Homogeneous catalyst Less amount required Less corrosive Utilities Biological treatment plant.PRODUCTION OF 100.0% 99.0% 95. Waste water treatment and Waste water treatment and Only high boiling residues RM 766.8% 99.0% 93.4275 Esterification reactor 3 distillation column 2 decanter Total = 6 91.5 to 3.0% 98.5 hours .54 Esterification reactor decanter 3 distillation columns Total = 5 RM 776.7% 8 hours 5 hours 2.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-22 CHAPTER 1: FEASIBILITY STUDY Residence times is 4 hours Product purification Product conversion Profit margin Equipment RM 760.98% 99.7% 99.

cost and capital investment Not involve neutralizer Operating labor will lower for continuous processes Conversion cost lower Safe energy.PRODUCTION OF 100. become more efficient as throughput increases Controllability Complicated Easier to control For complicated and highly integrated(energy/raw material) plants. become more efficient as throughput increases Easier to control For complicated and highly integrated(energy/raw material) plants. the control become Economies of scale favor continuous processes for large throughput Generally. the control become Not involve neutralizer Operating labor will lower for continuous processes high boiling residues treatment Safe energy. become more efficient as throughput increases Easier to control For complicated and highly integrated(energy/raw material) plants.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-23 CHAPTER 1: FEASIBILITY STUDY heavy product treatment high boiling residues treatment Cost Expensive operation to separate the neutralization product and to recover the acrylic acid Higher operating labor cost in standard batch plant due to equipment cleaning and preparation time Size Smaller throughput favor batch operations Economies of scale favor continuous processes for large throughput Processing efficiency Requires strict scheduling and control Generally. cost and capital investment Not involve neutralizer Reduce inhibitor and catalyst cost Operating labor will lower for continuous processes Conversion cost lower treatment . the control become Economies of scale favor continuous processes for large throughput Generally.

rather Acid catalyst is sent with the reaction mixture from the reaction zone to a rectification unit.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-24 CHAPTER 1: FEASIBILITY STUDY complex and operational flexibility is greatly reduce Safety Worker exposure to chemicals and operator error will be higher Large chemical plant operating continuously have excellent safety record and any safety procedures will established complex and operational flexibility is greatly reduce Large chemical plant operating continuously have excellent safety record and any safety procedures will established complex and operational flexibility is greatly reduce Large chemical plant operating continuously have excellent safety record and any safety procedures will established Free from Dioctylether Aqueous can be Advantages discharged without treatment The removal of all high boiling secondary components and catalyst from esterification product Prevent contamination of pure product with low boiling dissociation product and acrylic acid Minimize the problem associated with conducting the reaction and recovering unreacted reactant and product Enables lower catalyst and inhibitor usage and reduce cost Disadvantages Aqueous liquors that discharge are highly polluted The unreacted AA contained in the ester Acid catalyst is sent with the reaction mixture from the reaction zone to a rectification unit.PRODUCTION OF 100. rather .

than be allowed o remain in the reaction zone. Technically expensive operation to separate the neutralization product and to recovere the AA by acidification with hydrochloric acid with the resultant formation of a salt whereby wastewater preparation is rendered difficult. than be allowed o remain in the reaction zone.PRODUCTION OF 100.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-25 CHAPTER 1: FEASIBILITY STUDY to be neutralized. Lead to high corrosion rate Equipment fouling Undesired side reaction .

by products. become more efficient as throughput increases. PTZ is not soluble in water. avoid redissociation of high boiler and target product in liquid phase. A somewhat higher concentration of sulfonic acid may be required in order to achieve the same reaction rate that can be obtained with a given quantity of sulfuric acid. in which feed is sent continuously to a series of equipment. Economies of scale favor continuous processes for large throughput. The hydromonomethyl ether (HMME) is the preferred . operating cost and capital cost is also low. In this method. Using this method. Beside that. may be contained in the liquid reaction media such as antioxidants stabilizers. Since. minimize the problem associated with conducting the reaction and recovering unreacted reactant and product.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-26 CHAPTER 1: FEASIBILITY STUDY Table 1. and waste leave the process continuously and are sent to storage or for further processing. safety.4 illustrated above the comparison of all those processes along with their advantageous and disadvantageous. In this process.PRODUCTION OF 100. The 4th method which is equilibrium limited reaction was chosen as the best process after all the critical aspects were considered such as product conversion and purification. It also enables lower catalyst and inhibitor usage and reduce cost. it produces high product purification which is 99. During this process. operability. with each piece usually performing a single unit operation. it uses DBSA as a catalyst. Generally. profit margin. process efficiency. etc. Then. Large chemical plants operating continuously have excellent safety record and any safety procedures will establish. buffer and polymerization inhibitors phenothiazine is preferred inhibitor. this method is easy to control. prevent contaminant of pure product with low-boiling dissociation product. hydroquinone is preferably used as the inhibitor for aqueous streams.7% same with 1st method but lower 2nd method and 3rd method. The 4th method is favor for the production of 2-EHA since the conversion of product is high and purity is achieving the customers need. In this production. product. for complicated and highly integrated (energy/raw material) plants. the control become complex and operational flexibility is greatly reduce. The advantages of this method are removal of all high-boiling component catalyst from esterification product.

4 RAW MATERIAL SELECTION 1. Homopolymers or copolymers will form after reacting them and will are used in the manufacture of various plastics. Beside that.1 Acrylic acid (AA) Acrylic acid with IUPAC name. acrylic acid and its esters readily combine with themselves or other monomers such as amides. and 2-ethylhexyl-acrylate are the most common alkyl esters of AA.1.. elastomers. adhesives. 1. acrylonitrile. Inc.2 2-Ethylhexanol 2-Ethylhexanol (2-EH) also known as isooctanol is a fatty alcohol which is an organic compound used in the manufacture of a variety of application. butyl acrylate. Methyl-.PRODUCTION OF 100. Productions of acrylic acid are annually more than one billion kilograms (Basic Acrylic Monomer Manufacturers. 2006) AA has typical reactions of a carboxylic acid. and paints. 2-EH has a molecular .000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-27 CHAPTER 1: FEASIBILITY STUDY product shipping inhibitor and is used in the product recovery distillation column. The esters and salts of acrylic acid are collectively called as acrylates or propenoates. prop-2-enoic acid is an organic compound with the formula C2H3COOH. butyl-.1.4. as well as floor polishes. AA is colorless liquid that has a characteristic acrid or tart smell. ethyl acrylate. vinyl. coatings. ethers. It will form the corresponding ester when it reacted with an alcohol. and chloroform. and styrene. It consists of a vinyl group connected directly to a carboxylic acid terminus and the simplest unsaturated carboxylic acid. 1. with reacting at their double bond. Approximately.1. major manufacturing of AA in the United States is used to produce acrylic esters such as methyl acrylate. An essential building block is the one most commonly application of acrylic acid in industrial and AA is a consumer products. It is miscible with water. and 2-EHA. Air or oxygen can be used to enhance the effectiveness of the inhibitors.4. ethyl-. alcohols.

while carboxylic acids are weak (with dissociation constants of about 10 -5 ). 1. colorless liquid that is nearly insoluble in water. sulfonic acids are -2 considered strong acids (with dissociation constants of about 10 ). 2009). clear. eyes. the sunscreen octocrylene contains a 2-ethylhexyl ester for this purpose and it is also commonly used as a low volatility solvent (2-Ethylhexanol (2-EH) Uses and Market Data. However. Because sulfonic acids are so acidic. 2-EH is the most significant synthetic alcohol following the lighter alcohol (methanol to butanol). they generally exist as their salts and thus tend to be quite soluble in water. attached to it. The minor application of 2-EH is in the manufacture of the diester bis (2ethylhexyl) phthalate (DEHP) also known as plasticizer. The hydrogen atom makes the compound acidic.PRODUCTION OF 100. esters of 2ethylhexanol tend to have emollient properties because it is a fatty alcohol. 2009). There is variety of uses especially when 2-EH is can be readily converted into esters. S. but well soluble in most organic solvents. O.3 Dodecylbenzene Sulfonic Acid (DBSA) Organic compound containing the functional group R SO 2 OH. For example. which consists of a sulfur atom. H.1.4. R and also bonded to three oxygen atoms. respiratory tract and also cause nausea and headache after inhalation. It is a marine pollutant which can affect skin. 2-EH will become combustible liquid after the temperature above 60°C.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-28 CHAPTER 1: FEASIBILITY STUDY formula C8H17OH which is a branched and have eight-carbon alcohol. diarrhea and vomiting after ingestion. Alcohol component is the major use of 2-ethylhexanol for the producer of ester plasticizers for soft polyvinyl chloride also known as PVC and has been produced for this purpose since the mid-1930s. . bonded to a carbon atom that may be part of a large aliphatic or aromatic hydrocarbon . much as the hydrogen of a carboxylic acid makes it acidic. Long-term exposure can result in defatting of the skin (2-Ethylhexanol (2-EH) Uses and Market Data. one of which has a hydrogen atom. However.

Figure 1.g. Figure 1.8: Molecular structure of DBSA . are important as antibiotics.5 show the molecular structure and the properties of DBSA. Sulfonic acid groups also improve the washfastness of wool and silk dyes by enabling the dye to bind more tightly to the fabric. It is mainly used to produce household detergents including laundry powders. Dodecylbenzenesulfonic Acid (CH3(CH2)11C6H4SO3H ) is the largest-volume synthetic anionic surfactant having straight chain for biodegradable environmental friendliness. Some sulfonic acid derivatives. laundry liquids. which contain carboxylic acid salts. soaps containing sulfonates do not form a scum in hard water because the calcium and magnesium ions present in the hard water do not form insoluble precipitates with sulfonates as they do with carboxylates.PRODUCTION OF 100. The most important use of sulfonic acid salts (sulfonates) is in the detergent industry. e. Unlike ordinary soaps ..8 and Table 1. the sulfa drugs. Sodium salts of long-chain aliphatic or aromatic sulfonic acids are used as detergents. dishwashing liquids and other household cleaners as well as in numerous industrial applications like as a coupling agent and as an emulsifier for agricultural herbicides and in emulsion polymerization.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-29 CHAPTER 1: FEASIBILITY STUDY Sulfonic acid groups are often introduced into organic molecules such as dyes to stabilize them for use in aqueous dye baths.

Com.pdf) .5: Properties of DBSA (Science Lab.1.9: PTZ molecular structure (Source: http://www. 4 Phenothiazine (PTZ) and Hydroquinone monomethyl ether (HMME) PTZ is an aromatic amine that exhibits broad activity as an inhibitor.cytec. The PTZ and HMME are principally utilized as an inhibitor and shortstopping agent in the stabilization of acrylic acids.PRODUCTION OF 100.49 Brown liquid 10°C 315°C 1. PTZ is a solid material that is supplied in both flake and powder forms. The chemical structure of the PTZ is as follows: Figure 1. esters and monomers.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-30 CHAPTER 1: FEASIBILITY STUDY Table 1. antioxidant and shortstopping agent in a variety of diverse applications.com/specialtychemicals/downloads/PTZ%20AB%20general.2 1. 2008) Properties Molecular weight Physical state Melting point Boiling point Specific gravity Value 326.4.

ester or monomers.com/specialtychem/perchem/4METHOXYPHENOL. Table 1. The experiment of the separation by settling is carried out in a separating funnel. 2005) Stabilizer Aqueous-Phase stabilizer HMME PTZ HQ HQ HQ HQ CuSO4 Fe2(SO4)3 Mn(OAc)2 TEMPO Appearance of a emulsion on neutralization No No No No No No HMME – Hydroquinone methyl ether PTZ – Phenothiazine HQ – Hydroquinone . The appearance is recorded of an emulsion at the interphase during the separation by settling.6 Stabilizer of acrylic acid and aqueous-phase stabilizer (Riondel et al.htm) The reaction is generally conducted in the presence of at least one polymerization inhibitor selected in a particular from PTZ and HMME.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-31 CHAPTER 1: FEASIBILITY STUDY The chemical structure of the HMME is as follows: Figure 1.10: HMME molecular structure (Source: http://www.. The stabilizers are used and injected at the top of distillation column purposely for stabilizing acrylic acid.chemicalland21.PRODUCTION OF 100.

PRODUCTION OF 100. will perform in low pH environments Operational versatility.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-32 CHAPTER 1: FEASIBILITY STUDY Features and Benefits Broad stabilizer activity allows the product to function as either an inhibitor. economical product . antioxidant or shortstopping agent in a range of diverse applications Outstanding thermal stability facilitates performance at temperatures of 90 °C and above Acid resistant. functions in both aerobic and anaerobic environments High activity leads to functionality at low concentrations Synergizes with other stabilizer products allowing the formulation of high efficiency systems Low cost.

33 35 V-101 S10 P-103 41.11: Process Flow Diagram for Production 2-EHA .000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-33 CHAPTER 1: FEASIBILITY STUDY P-101 RAW AA PUMP P-102 MIX-101 RAW 2EH MIXER PUMP R-101 E-101 REACTOR CRUDE MIXTURE PREHEATER E-102 T-101 E-103 E-104 V-101 VAPOR 2-EH-AA DECANTER DISTILLATION 2-EH-AA CONDENSER COLUMN REBOILER CONDENSER V-102 REFLUX DRUM P-103 RECYCLE PUMP P-104 RECYCLE PUMP E-106 E-105 E-106 P-105 E-107 E-108 2-EHA 2-EHA 2-EHA PRODUCT PRODUCT RESIDUE CONDENSER REBOILER CONDENSER PUMP COOLER COOLER 121.79 41.PRODUCTION OF 100.7 V-102 S18 TEE-101 S11 AQUEOUS S3 S5 J-T VALVE 1 S6 S7 12 70.33 53.6 35 S20 S15 121.6 T-101 E-106 E-103 20 164.6 57. MOHAMAD NOR ZURINA MD ZAINUDDIN ASAEELAWATI YUSUF RAJA MASHEERA RAJA SARIMAN 2008289248 2008289228 2007287172 2008289242 2008412908 SCALE 1:1 SHEET Figure 1.79 41.33 35 LEGEND PRESSURE kPa TEMPERATURE (˚C) STREAM NUMBER S4 S12 E-102 P-101 2-ETHYLHEXANOL 121.18 E-101 ACRYLIC ACID P-102 MIX-101 S16 HEATER /COOLER 126 119.33 90 R-101 E-104 41.6 35 41.7 116 35 S17 J-T VALVE 2 REACTOR S24 S22 S25 E-107 P-105 S21 2-ETHYLHEXYL ACRYLATE DECANTER E-105 40 229.6 70.4 119.33 35 PURGE 41.1 35 S23 E-100 HIGH BOILING RESIDUE DISTILLATION COLUMN DESIGN PROJECT 1 SUPERVISOR ALLIED SUPERVISOR : : MISS FARAZIEHAN BINTI SENUSI MOHD ISMAIL BIN BAHARUDIN PRODUCTION OF 2-ETHYLHEXYL ACRYLATE GROUP MEMBER: SIZE FSCM NO DWG NO REV ABDUL JALIL MOHD RASHID MOHD NAIM FIRDAUS B.21 P-104 S13 121.33 120 S8 41.7 T-102 V-103 2.33 30 S9 41.6 35 121.33 120 14 112.

2 MARKET ANALYSIS Market analysis can be defined as a survey of the demand and supply of a particular product that an industry intends to produce for sale locally. regionally or globally. Hydroquinone monomethyl ether (HMME) and Phenothiazine (PHTHZ) acting as catalyst in this process. Besides that. Acrylic esters are used in the production of polymers and copolymers with a wide range of applications. Petrochemical growth Chemicals are very important in industry sector. Malaysia especially in chemical industry showed gradual growth every year through a chemical company like BASF and Titans. Specifically. The Malaysian Industrial Development Agency (MIDA) gives further incentives to develop in the country. In fact. a demand for these never falls down but continuous showed increment every year. It is important to determine the profitability of a product in the market. The centre of Malaysia's petrochemical development is on the east coast of the Malaysian peninsula in Terengganu. The chemical type such as organic and inorganic.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-34 CHAPTER 1: FEASIBILITY STUDY 1. The new complex is right at the centre of this area of petrochemical development. training grants and low rents. This process was helped by the Dodecylbenzenesulfonic acid (DBSA). As a plasticizing co-monomer.000 mt of 2Ethylhexyl Acrylate (2-EHA) as well as the main product whereas involving the reaction of Acrylic acid (AA) and 2-Ethylhexanol (2-EH). also specialty chemical always used to make some money to country.PRODUCTION OF 100. this section is all about the market and the production of 100. between Kertih and the Gebeng industrial development zones near Kuantan. These include R&D grants. Industry The largest volume of ester produced in the market is 2-EHA because of its wide variety of applications. 2-EHA is . it will enable a company to determine related parties such as competitors and suppliers. This is because chemical material is very important to our daily routine application. 2-EHA products are versatile compounds which can be used of major markets in chemical industry.

abrasionresistant finish such as on book covers and record albums. roadmarking substances. of which it is a major component. Unlike acrylic fibres which is lowest demand of application proved thru the low product percentage. In addition. Other applications include coatings raw materials and uses in the plastics and textiles industries. latex. The major current use of 2-EHA is in acrylic pressure-sensitive adhesives.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-35 CHAPTER 1: FEASIBILITY STUDY used in the production of resins for pressure-sensitive adhesives. paints. 1. The market is forecast to grow at rates aligned with average global growth domestic product (GDP). textile and leather finishes and coatings for paper.2. 2-EHA can also be used as a co-monomer in solution polymers for industrial metal finishing.7 above show the estimation uses of 2-EHA in variety of application in three different place which is Japan. which provide a glossy.PRODUCTION OF 100. 2-EHA is also used in ultraviolet-curable coatings without solvents. It was obvious that application on surface coating get a high request from users in these three regions.7: Estimated uses of 2-EHA (% of total) Application Surface coatings Textiles Acrylic fibres Adhesive Other Japan 34 16 14 20 16 Europe 35 18 7 15 25 USA 42 23 6 5 24 (Sources: BASF report 2009) Table 1. Table 1.1 Supply and Demand Of 2-EHA Global commodity acrylate ester demand reached 2. 2-EHA is used as a monomer in construction-industry chemicals like floor coatings. Europe and USA.8 million tonnes in 2005. Continued focus on water-based coatings and dispersion systems will positively .

...Ltd SIGMA-ALDRICH Corporation Rohm & Haas company Chemos GmbH BASF PETRONAS Chemicals Sdn Bhd Status Producer Supplier Producer Producer Producer Producer Producer Supplier Producer Supplier Producer . BASF from Malaysia is not exception to be listed as producer of 2-EHA.Ltd Jinan Huifengda Chemical CO. Ltd Sinogreat Enterprise Ltd Yongyi Chemicals Group Co..8 shows a major global producer or suppliers of 2-EHA.8: Global Producer/Suppliers of 2-Ethylhexyl Acrylate Country China China China China China China China US US Germany Malaysia Company Simagchem Corporation Jinan Haohua Industry Co. while substitution in many applications in developed economies has already occurred.. It was identified thru the company name.PRODUCTION OF 100. Ltd Hangzhou Meite Chemical Co. Ltd Jiangsu Jurong Chemical CO. location and their status either producer or supplier. Table 1.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-36 CHAPTER 1: FEASIBILITY STUDY influences 2-EHA demand in developing economies. Table 1.

2. accounting for around 31% of global demand.12: World consumption of Acylate Esters in 2006 (Source: http://www. By 2015.1.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-37 CHAPTER 1: FEASIBILITY STUDY 1.com ) The following pie charts show world consumption of commodity acrylate esters. With growing demand for acrylic acid derivatives. The Far East is widely expected to see a strong upswing .1.2. In terms of regional acrylates East Asia has already overtaken the United States and Western Europe. 1. the country has retained good GDP growth. major producers have debottlenecked and expanded plants and built new facilities at key sites throughout the world.PRODUCTION OF 100. Thus.1 Global Figure 1.2 Malaysia Malaysia has so far been relatively untouched by the general crisis in East Asia. The government imposed a series of exchange controls and anti-import measures. which have given the local economy some shelter from the surrounding storm. Demand for commodity acrylates is forecast to grow at 3. this share will rise to around 37% as the region will lead future global demand. led by super absorbent polymers.7% annually during 2006–2011.sriconsulting. which is fast outpaced by the growth in chemicals industry investment.

BASF Petronas Chemicals Sdn Bhd is putting together a huge petrochemical complex in Kuantan. Furniture and paper Other industries (Source: BASF Report 2009) The table shows the percentage of sales 2009 made by BASF thru direct customers.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-38 CHAPTER 1: FEASIBILITY STUDY in chemicals demand as the regional economy recovers from the effects of the Asian crisis. an acrylic acid facility. In 2009. Malaysia. the new verbund site in Nanjing.PRODUCTION OF 100. While in 2005. BASF’s leading a position in specialty chemicals. Plastics industry and oil industry Electrical. BASF exactly is the worlds leading chemical company. China begins operation. It was obvious chemicals product such as AA and 2-EHA become a top highest sales around the world. It is not surprised because since 2004. The complex will include a butanediol facility.9: BASF sales 2009 Percentage (%) >15 10-15 5-10 <5 10-15 Product Chemicals including AA and 2-EHA Automotive.5 billion. The entire project is said to cost Malaysian Ringgit 2. . The plant has achieved more than three million man hours without a lost time accident. a cracker facility and a formic acid facility. construction and utilities Agriculture. BASF Malaysia In 1999. Table 1.

000 50. demand for 2-EHA always got highest request from user around the world.2. Germany Kuantan.000 0 Antwerp. 1. The others BASF in Belgium. Malaysia also not exception to face a unusual demand of 2-EHA. The application of surface coatings.000 150. USA and Germany was produce amount of AA exceed 200. Malaysia Nanjing.PRODUCTION OF 100. Belgium Freeport. textiles and so on make a chemical company find the ways to build up of 2-EHA plant for meet the demand.000 tonne /year. A production of 2-EHA was only controlled by BASF company which is supply the product in local market.3 Local demand for 2-EHA As stated earlier.000 200.000 tonne /year of AA. USA Ludwigshafen.13: BASF Acrylic acid productions (Source: Chemicals-technology. The demand .com/BASF acrylic monomers 2010) The bar chart illustrated an amount AA consumption of BASF companies around the world whereas BASF Malaysia was shared a lowest place with BASF China in produce 160.000 250.1.000 300.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-39 CHAPTER 1: FEASIBILITY STUDY Consumption (tonne/year) 350.000 100. China Tonne Sites Figure 1.

5 (Source: Technon-Orbi-Com/Acrylic acid and its ester 2009) .27% capacity will increase in these 10 years or 247.5 80.2.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-40 CHAPTER 1: FEASIBILITY STUDY for 2-EHA has gradual increased each year.5 742.5 80.PRODUCTION OF 100.5 80.5 537.5 China 50 80 175 175 185 205 205 TOTAL 495. The total capacity on 2015 was expect increased two-fold comparing in 2005 which is 495. America was the first in producing a large amount of 2-EHA.1.4 Forecast 2-EHA Table shows the forecast demand for 2-EHA around the world from 2005 until 2015.5 80.10: Capacity to produce 2-EHA from 2005-2015 Region Year (1000 metric tons) 2005 2006 2007 2008 2009 2012 2015 America 220 230 20 230 230 240 240 Europe 78 80 80 80 80 80 80 Middle East 35 35 35 35 35 35 65 Southeast Asia 32 32 32 32 32 72 72 Northeast Asia 80.5 712. 1.5000 metric tonnes production.5 80. Table 1.5 632.5 627.5 80. it obviously state 33.5 642. Thus. so that the plant absolutely will help to cover up the future global demand for 2-EHA.000 metric tonnes requested to produce.

000 metric tonnes in 2015.13 illustrated the graph with gradual increase on capacity on 495. .2. The ten years period is sufficient to prove the actual increment of world capacity of 2-EHA.PRODUCTION OF 100.3 AN OVERVIEW ON RAW MATERIALS The production of 2-Ethylhexyl acrylate is dependent on raw materials such as Acrylic acid and 2-Ethylhexanol as the excess reagent and limiting reactant respectively. it is forecasted that the capacity 2-EHA will keep increasing until 2015. HMME and PHTHZ as catalyst will result in the production of 2-EHA.000 metric tonnes in 2005 to 742.14: World capacity of 2-EHA (Source: Technon-Orbi-Com/Acrylic acid and its ester 2009) The figure 1. The reaction between AA and 2-EH in the presence of DBSA. 1. Based on capacity of 2-EHA.500.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-41 CHAPTER 1: FEASIBILITY STUDY World Capacity of 2-EHA 800 700 Capacity (1000 mt) 600 500 400 300 200 100 0 2005 2006 2007 2008 2009 2012 2015 Year Figure 1.500.

2-EH. Table 1. Across the world. .1 Acrylic Acid (AA) 30 127 Most of acrylic acid is used as the raw material to produce acrylic ester products including 2-Ethyl Acrylate. Egypt. there are several great manufactures of acrylic acid. Thailand.11 shows 127 of companies around the world have being main suppliers of acrylic acid.11: Main AA.com) 1. Syria (Source: www. Cameroon. It definitely ensures the BASF as main manufacturer of this Acrylic acid. Brazil. it was observed Malaysia become a list to be suppliers to Acrylic. DOW Chemical. NSKK and Formosa Plastics. 30 companies being 2-Ethylhexanol. Turkey. Hong Kong.000 Crude Acrylic acid tonne /year. Major producers include BASF. This field consumes about 70% of the total volume of acrylic acid.PRODUCTION OF 100. Rohm and Haas. it was then reveal that BASF was producing 160. Iran 2-Ethylhexanol China.The only one company whom related to these was BASF which is situated at Kuantan.2. Hong Kong. 2-EHA Suppliers around the World Material Country Total No. UK. Arkema. South Korea. France. Taiwan. Belgium. USA. Singapore. of company Acrylic acid China.000 Glacial Acrylic acid tonne /year.alibaba. India. Thus.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-42 CHAPTER 1: FEASIBILITY STUDY Table 1. Malaysia. 40. Therefore. Iran. UAE.3. Pakistan. Indonesia. Bangladesh. between 2 categories said just know. US. Malaysia (5).

000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-43 CHAPTER 1: FEASIBILITY STUDY 1400000 Capacity (tonne/year) 1200000 1000000 800000 600000 400000 200000 0 160000 Country Figure 1.PRODUCTION OF 100.000 tonne /year was produced. The total global capacity of AA produced around the world is 4061.000 tonne /year. Table 1. However. Malaysia is seven places to become as manufacturer of AA with 160. China was lead from other country in making this chemical. BASF from Malaysia is not spared to be listed as producer of 2-EHA.15: Main manufacturer of AA (Source: BASF Report/ Acrylic acid production 2009) The bar chart listed all the main country that involved on manufacturing of AA around the world.12 shows a major global producer or suppliers of AA. . which country them situated and their status either producer or supplier. It was identified thru the company name. America is the highest one to become AA producer about 1313000 tonne /year while Czech the lowest producer with 55000 tonne /year.

Ltd.alibaba. World demand for crude acrylic acid is forecast to grow at 3. while demand for glacial acrylic acid is forecast to grow at about 4% annually during 2006–2011.. Ltd Spectrum Chemical Mfg. Corp Hangzhou Meite Chemical Co.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-44 CHAPTER 1: FEASIBILITY STUDY Table 1.12: Producer/Suppliers of Acrylic Acid Country China China USA China China Germany USA Malaysia Company Simagchem Corporation Jinan Haohua Industry Co.com) Demand for AA The global crude acrylic acid reached around 3.. Ltd Kinbester Co.PRODUCTION OF 100. . BASF Petronas Chemicals Sdn Bhd Status Producer Supplier Supplier Producer Supplier Supplier Supplier Producer (Source: www.2 million tonnes by the end of 2005. Chemos GmbH WEGO Chemical & Mineral Corp.7% annually during 2006– 2011..

Asia demand for crude acrylic acid will outstrip that in developed economies.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-45 CHAPTER 1: FEASIBILITY STUDY Figure 1. there is rise the capacity of AA for entire region whereby China is the major of producing AA. Given strong forecast double digit demand growth in Asia. particularly China. .42% from 2005 to 2015 which is 1937. The total world capacity indicates increasing to 33. Meaning that in 10 years period. moving from only 21% of global demand in 2005 to around 38% in 2015. Forecast of AA Table shows forecast demand of AA around the world from 2005 to 2015.000 metric tonnes rise.PRODUCTION OF 100. However. the future major investment in acrylic acid complexes will be made in developing economies.16: World consumption of crude AA 2006 (Source: http://www. In terms of geographic region. current crude acrylic acid is centered the United States and Western Europe.sriconsulting. which account for 36% and 27% of global demand respectively.com) The pie charts show world consumption of crude acrylic acid.

PRODUCTION OF 100.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-46 CHAPTER 1: FEASIBILITY STUDY Table 1.13: Capacity to produce Acrylic acid from 2005-2015 Region Year (1000 metric tons) 2005 2006 2007 2008 2009 2012 2015 North America 1363 1395 1395 1395 1395 1395 1395 Europe 997 1060 1130 1220 1290 1290 1290 Middle East 75 80 80 80 80 160 240 Southeast Asia 278 295 295 295 295 615 615 Northeast Asia 821 821 941 881 921 1001 1001 China 325 660 1025 1065 1125 1255 1255 TOTAL 3859 4311 4866 4936 5106 5716 5796 (Source: Technon-Orbi-Com/Acrylic acid and its ester 2009) .

17: World capacity of AA (Source: Technon-Orbi-Com/Acrylic acid and its ester 2009) Figure 1. Based on capacity of 2-EHA.2 2-Ethylhexanol (2-EH) 2-Ethylhexanol (2-EH). colorless liquid that is nearly insoluble in water. eight-carbon alcohol.PRODUCTION OF 100. is a fatty alcohol. It is a clear. .000. 1.3.2. It is a branched.000 metric tonne in 2015.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-47 CHAPTER 1: FEASIBILITY STUDY World Capacity of AA 7000 6000 Capacity (1000 mt) 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009 2012 2015 Year Figure 1.16 illustrated the graph with gradual increase on capacity on 3859. an organic compound used in the manufacture of a variety of products. but well soluble in most organic solvents. The ten years period is sufficient to prove the actual increment of world capacity of 2-EHA.000. it is forecasted that the capacity 2-EHA will keep increasing until 2015.000 metric tonne in 2005 to 5796. or isooctanol.

No growth and possibly some decline is expected in the US. . according to UK-based consultant state that Tecnon OrbiChem China is a major 2-EH importer of over 250. Total production or consumption is estimated to reach a little over 2. coatings.000 tonne /year. Demand for 2-EH in China is predicted to grow at 7%/year from 2010-2015. Demand for 2-EH The global recession means that 2-EH is well supplied worldwide. South Korea and Taiwan).PRODUCTION OF 100. Exporters include Western Europe of more than 150.000 tonne /year. However. China was in the top rank than other country in making this chemical and become the global supplier. location and their status either producer or supplier.8 million tonnes in 2009. It was identified thru the company name.14 shows a major global producer or suppliers of 2-EH.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-48 CHAPTER 1: FEASIBILITY STUDY 2-EH can be readily converted into esters that have a variety of uses. BASF from Malaysia is not spared to be listed as producer of 2-EH. The largest market for 2-EH has been the plasticiser di-octyl phthalate (DOP) which is used in the manufacture polyvinyl chloride (PVC) products. adhesives and other speciality chemicals.com/news 19 October 2009 Supplier for 2-EH Table 1. Middle East of over 70. Europe and northeast Asia (Japan. Source: icis. with worldwide growth at over 2% /year in the same period.000 tonne /year and rest of Asia at around 50. giving average utilization rates of just above 80%.000 tonne /year. The main uses for 2-EH is in the production of plasticisers.

Western is the biggest DBSA capacity with 1400000 tonne /year while Canada just 63000 tonne /year.3 Catalyst Dodecylbenzenesulfonic acid (DBSA) or synonym name linear alkylbenzene sulfonate is the world’s largest-volume synthetic surfactant and is widely used in household detergents as well as in numerous industrial applications. Ltd. Meyer GmbH Storchem Inc.15 shows the global capacity and production of DBSA in 1994 to 1995 between five major regions. However. Ltd. Magna-Kron Corp.. East region become a biggest producer . including laundry powders.14: Producer/Suppliers of 2-Ethylhexanol Country China US Germany Canada Netherlands India Main Company Jinan Haohua Industry Co.2. DBSA supply/demand Table 1.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-49 CHAPTER 1: FEASIBILITY STUDY Table 1. Industrial. Therefore. dishwashing liquids and other household cleaners.. laundry liquids.PRODUCTION OF 100. Joss Elastomers B. DBSA is generally produced in equipment that is also used to produce other sulfonated/sulfated products.. The products referred to as DBSA include the various salts of sulfonated alkylbenzenes as well as the free acid.V. capacities far exceed demand for DBSA alone. Venus Petrochemicals (Bombay) Pvt.3. Klaus F. institutional and commercial detergents account for most of the other applications of DBSA. Status Supplier Supplier Supplier Supplier Supplier Supplier 1. but it is also used as an emulsifier for agricultural herbicides and in emulsion polymerization and wetting agent. About 85% of DBSA is used in household detergents...

15: Global demand of DBSA from 1994-1995 Region Capacity Western Mexican Canada US East 1400 237 63 1038 513 (1000 tonne/year) Production 433 205 33 191 1140 (Source: Chemical Economic Handbook. Kuala Lumpur Ulu Tiram. Johor Bukit Mertajam. Feb 1996) Producer/Suppliers for DBSA Table 1. Penang Company Best Chemicals Sdn Bhd Zender Chemicals Sdn Bhd EQX Materials Sdn Bhd Status Producer Producer Supplier (Sources: www.16: Malaysia Producer/Supplier for DBSA from 2009-2010 Region Kg Baharu.PRODUCTION OF 100.16 shows the Malaysia major companies which is being DBSA producer and supplier in 2009 to 2010 whereas these three companies is situated in Kuala Lumpur.alibaba. Table 1.com) . Johor and Penang respectively Table 1.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-50 CHAPTER 1: FEASIBILITY STUDY of DBSA which is the production reach to 1140000 tonne /year and Canada also a minor producer of DBSA.

.. Table 1. In its many applications.alibaba. antioxidant and short stopping agent in a variety of diverse applications. The product is principally utilized as an inhibitor and short stopping agent in the stabilization of acrylic acids. Products and chemical processes that utilize PHTHZ will exhibit enhanced and improved performance.2.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-51 CHAPTER 1: FEASIBILITY STUDY 1. and many other aspects of a company. Most companies usually manufacture both PHTHZ and HMME because the same type of function of this stabilizer. the product is extremely active. The goal of a market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm. PHTHZ and HMME Producer/Supplier Table shows the major producer and supplier of PHTHZ and HMME in China and Asian region for this decade.3.4 PHTHZ and HMME PHTHZ and HMME have a same function which is a reaction inhibitor.4 MARKET PRICE ANALYSIS A market analysis is a documented investigation of a market that is used to inform a firm's planning activities particularly around decision of inventory. functions at very low concentrations and will synergize with other stabilizers. esters and monomers. . purchases of capital equipment. facility expansion.PRODUCTION OF 100.2.17: Asian Producer/Supplier for PHTHZ and HMME Region China China China China Company Shanghai Yancui Import & export Co.. purchase. work force expansion/contraction.Ltd Hangzhou Garden Corporation Component PHTHZ & HMME PHTHZ & HMME PHTHZ HMME (Sources: www.com) 1. promotional activities.Ltd Nanjing Yedu Trade Co.Ld Shenyang Yishengrong Chemicals Co.

9 4984. 2-EHA and DBSA. It clearly observes the prices always showed slightly increase in all region whereas US give a highest price of RM 8297.2 5391.icis.2 Price of AA Max Price of Acrylic acid from Feb-Mid may 2010 9000 8000 7987.5 8297.18: Price between Feb to Mid May 2010 (Source: www.90 /tonne.8 Feb Mid May Area Figure 1.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-52 CHAPTER 1: FEASIBILITY STUDY 1.com) The bar chart above shows the maximum price of AA from February to mid May of 2010.42 /tonne in mid May and also lowest price of RM 2111.com 1. .1 Price of 2-EHA The global price of 2-EHA is RM 11.42 7348. it would be expected that the global trend for 2-EHA prices also undergo the same changes as well as other chemicals trade. According to prices of other chemicals such as AA.4. The prices always increase for the future.4.2.80 /kg.PRODUCTION OF 100.2.4 2111.5 7643.icis.54 Price (RM)/tonne 7000 6000 5000 4000 3000 2000 1000 0 China Southern Asian Europe US 2300. Sources: www.

19: Price between Feb to mid May 2010 (Source: www.88 /tonne followed by Europe RM 5575.3 Price of 2-EH Max Price of 2-Ethylhexanol from Feb-Mid May 2010 7000 6000 6469.com) The bar chart above showed the maximum price have achieved by 2-Ethylhexanol from February until may 2010.36 /tonne.88 6070.5 5575.PRODUCTION OF 100.28 /tonne and the lowest price in US by RM 2797.4. However.36 2425. the entire regions always give increasing value during 4 month and will be expected rising in future.28 5247.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-53 CHAPTER 1: FEASIBILITY STUDY 1.2. It definitely observed the highest price occurred in Southern Asian which is RM 6469. .08 Feb Mid May Area Figure 1.icis.18 Price (RM)/tonne 5000 4000 3000 2000 1000 0 Southern Asian Europe US 2797.

18: The latest price of DBSA in Asian region Country China Hong Kong India Average price (RM/tonne) 4939. Table 1. the price of DBSA is always made a changes based on global market price demand.23 /tonne. While few large suppliers of antioxidants dominate the relatively saturated markets of industrialized countries. the market in Asia is still very . domestic demand for consumption products containing antioxidants is growing.81 /tonne in China.5 Price of PHTHZ and HMME Demand and production of antioxidants are continually shifting from the USA. Prices have been dropping in the past several years.com) Status Producer Producer Producer Table 1.2.23 /tonne.94 (Sources: www.4 Price of DBSA DBSA is generally sold in bulk quantities. the expensive price recorded for the DBSA is RM 4939. However. As been seen.PRODUCTION OF 100.4. for sure the forecast prices for DBSA in next five to ten years expected to get increased because of the ultimate demands for these chemicals needs to industry. In the emerging countries themselves.4. and currently in 2010. The prices are quite same in China and India but lowest prices are known to be used in Hong Kong that is RM 3859.23 4908.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-54 CHAPTER 1: FEASIBILITY STUDY 1. Western Europe and Japan to the emerging markets of Asia particularly China and India.81 3859. 1. the lowest average price was recorded as RM 3859. In contrast.2. This is mainly because wages there are lower and environmental regulations are not as strict.alibaba. Hong Kong and India.18 shows the latest price of DBSA around Asian region in 2010 which is in China.

The break even point is the point at which the product stops costing money to produce and sell.00 /kg. In general. namely the total capital investment and the total product cost. New Asian suppliers are creating an additional pressure on established manufacturers. 1.5 BREAK EVEN ANALYSIS 1. The break even analysis requires an estimation of fixed costs. the costs involved can be split into two major categories. for instance contractor fees and contingencies.5. Besides direct costs invested in the plant design such as equipment purchasing and installation fees. transportation. wages. The total capital investment to fully . However. cost and profit structures with particular references to the break even point. there are also indirect costs in which must be taken account of.2. intermediate goods and final products all raise the price on the market. 1. Prices for raw materials. antioxidant prices are continuing to rise.2 Process economics and estimation A great plant design must always present a specific plant operation with an ultimate goal of obtaining profits from its product sales.2. Despite sufficient capacities. energy.PRODUCTION OF 100.3 Total Capital investment Total Capital investment by definition is the amount of money necessary for the investment of putting the project into operation. The global market price for PHTHZ is RM 610.5. 1.20 /kg and for HMME are RM 552. and starts to generate a profit for company.1 Introduction Break even analysis is a technique used to analyze income. variable cost and total revenues. price increases are somewhat limited by the shift of antioxidant production to Asia.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-55 CHAPTER 1: FEASIBILITY STUDY much fragmented. It is necessary for any plant design to achieve its goal to yield profits by evaluating different types of cost involved for the plant operation and establishment.2.2.5.

However. a large sum of investment to establish a fully operational plant must be made. Purchasing of necessary equipments plus the installation is crucial as it will be the core investment that will determine the compatibility of the plant as well as going to be established. which are the fixed capital investment and working/operating (variable) capital investment. auxiliary buildings. which is represented by the following equation:- Fixed Capital Investment = Direct Cost (ISBL + OSBL) + Indirect Cost Onsite costs (ISBL or inside battery limits) includes:- a) Purchased equipment cost b) Purchased equipment installation c) Instrumentation and control d) Electrical equipment and controls Offsite costs (OSBL or outside battery limits) includes:- a) Buildings: Process buildings.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-56 CHAPTER 1: FEASIBILITY STUDY complete the plant operation is mainly consisting of two parts. Total Capital Investment = Fixed Capital Investment + Working Capital + Start-up Cost Fixed Capital Investment (FCI) Apart from focusing only on the price of the raw materials. it also includes start-up costs as part of the total capital investment. Fixed capital investment is simply the sum of money required to be invested at the early stage of the construction of a fully operating plant. non-process equipment and distribution and packaging . Fixed capital investment is the costs required to build the process. maintenance shops. building services. b) Yard improvements c) Service facilities: Utilities.PRODUCTION OF 100. facilities.

includes:- a) Engineering and supervision b) Construction expenses c) Contractor’s fee d) Contingency Working Capital Working Capital is the capital required to actually operate the plant. start-up labor and loss in production. property costs Indirect Costs which are the expenses not directly involved with material and labor of actual installation. Start-up Cost are needed to handle the glitches encountered during the beginning of the plant operation.PRODUCTION OF 100. which includes: a) Process modifications b) Start-up labor c) Loss in production . and includes: a) Raw material for a one-month supply b) Finished products c) Accounts receivable d) Cash on hand e) Accounts payable and taxes payable Start-up cost Costs allocated for starting up the plant operation are start-up costs. The estimation of total start-up cost of the plant operation is to be 10% of the fixed capital investment.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-57 CHAPTER 1: FEASIBILITY STUDY d) Land: Survey and fees. Some of the examples of start-up costs are process modifications.

PRODUCTION OF 100. Bare Module method is used to estimate the cost of equipments used in the plant.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-58 CHAPTER 1: FEASIBILITY STUDY 1.4 Total Cost (TC) Direct Production Cost is: a) Raw materials b) Utilities c) Maintenance and repairs d) Operating supplies e) Operating labors f) Direct supervision g) Laboratory charges h) Patents and royalties Fixed charges include: a) Depreciation b) Local taxes c) Insurance d) Rent e) Interest Plant overhead is general plant upkeep and overhead.2. 1984). medical services. salvage laboratories and storage facilities. . recreation. safety and protection.5. To calculate the GRC. payroll overhead. contingency and fees (8% of total bare module cost. restaurants. CTBM).5. It makes-up the major portion of the total fixed capital cost.5 Gross-Roots Capital Cost (GRC) Gross-roots capital cost (GRC) is the cost of equipment installation in the plant. packaging. auxiliary facilities (10% of total module cost. CTM) are added to the initial bare module cost (Ulrich.2. 1.

So.2. there is a predictable profit.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-59 CHAPTER 1: FEASIBILITY STUDY 1. it can be defined as: Total revenue = Total cost (2. at some value of variable the revenue and the total cost relations will intersect to identify the break even point.5.6 Break Even Point The objective of the break even analysis is to determine the quantity at which the product at a price will generate enough revenue to start earning a profit. Q. Profit is defined as: Profit = Total revenue – Total cost (2.5) TR = TC The breakeven point is determined by using relations for revenue and cost at different values of the variable. Break even point is to estimate the volume or capacity for the company to reach the total cost equal to the total revenue and no profit was earned yet. For example. hour per month.2. If Q > BEP. percentage of capacity. But if Q < BEP. there is a loss.6) = TR – TC Break even point can be calculated using the equation below: BEP = (2.7 Calculation of Break Even Analysis All calculations are shown in APPENDIX A.PRODUCTION OF 100. etc.7) 1.5. The Q may be expressed in units per year. Estimation of Grass-roots capital .

90 8.001.259.536.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-60 CHAPTER 1: FEASIBILITY STUDY Table 1.53 Heater Decanter Table 1.433.68 49.30 41.73 12.400.594.98 868.022.21: Grass-roots capital Site development Auxiliary Building Offsite Facilities Auxiliary Facilities CSD = 0. (CTMB) RM RM RM RM RM RM RM RM RM RM RM Cost 2.76 62.963.006.00 13.34 Grass-roots Capital.963.099.297.226.158.877.59 Table 1.659.20: Total module cost Contingency Fees Total Module Cost CC = 0. GRC = CBM + Auxilary Cost .37 10.400.13 1.003.15CTBM Cf = 0.980.400.426.21CTBM (0.679.200.815.00 868.98 639.19: Equipment cost Equipment Tank Reactor Distillation column Mixer Condenser 3 R-101 T-101 T-102 MIX-101 E-102 E-107 E-108 E-101 V-101 Total Bare Module Cost.30CTBM ) RM RM RM RM RM 2.101.98 868.270.349.226.804.PRODUCTION OF 100.130.98 868.04CTBM COS = 0.38 1.400.400.03CTBM (CC + CF + CTBM =CBM) RM RM RM 6.05CTBM CAB = 0.97 489.97 10.

33 RM 15.242.106.67 62.043.521.130.33 3.639.213.213.50 RM 6.221.521.67 RM 931.00 18.434.970.956.68 RM RM RM RM 18.17 .319.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-61 CHAPTER 1: FEASIBILITY STUDY Estimation of Total Capital Investment (TCI) Table 1.956.973.67 Cost Table 1.00 9.639.106.608.00 4.751.67 RM 4.33 621.23: Indirect cost Event Engineering and supervision Construction Expenses Contractor’s Fee Contingency Total cost Total = RM 77.043.693.565.22: Direct cost Event Onsite Purchased Equipment Installation Instrumentation and Control (installed) Piping (installed) Electrical and Material (installed) 30 % GRC 15 % GRC 30 % GRC 8 % GRC Offsite Building Yard Improvements Service Facilities Land Total cost 10 % GRC 1 % GRC 5 % GRC 2% GRC RM RM RM RM RM 6.5 % GRC 10 % GRC Cost RM 3.737.67 1.970.304.PRODUCTION OF 100.434.85 5 % GRC 8 % GRC 1.130.

104.2 552 /kg /kg /kg /kg /kg 5285 kg/hr 9539 kg/hr 5.124.26 11.63 Total Capital Investment (TCI) Estimation raw material cost Table 1.24: Total capital investment Fixed Capital Investment (FCI) Working Capital Start Up Cost (FCI = GRC + Total) 12 % FCI 8 % FCI RM RM RM RM 140.29 kg/hr 5.414 3.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-62 CHAPTER 1: FEASIBILITY STUDY Table 1.952.PRODUCTION OF 100.454.493.127.825.330.38 RM 491.912.2367 6.32 RM 117.208.812.8592 610.43 kg/hr .95 RM 25.298.952.89 /yr /yr /yr /yr /yr /yr RM RM RM RM RM 7.40 RM 942.495.382.25: Raw material cost Price for raw materials AA 2-EH PHTHZ HMME DBSA Raw material usage AA 2-EH PHTHZ HMME DBSA Annual sales AA 2-EH PHTHZ HMME DBSA Annual sales for raw materials RM 307.29 kg/hr 26.84 RM 164.782.19 16.137.514.18 168.497.

400.113.400.603.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-63 CHAPTER 1: FEASIBILITY STUDY Estimation product cost Table 1.512.664.98 /yr 868.400.400.473.PRODUCTION OF 100.8 /kg 11737 kg/hr RM 1.98 /yr 868.98 /yr 3.00 Estimation of utilities cost Table 1.26: Product cost Price for product 2-EHA Raw material usage 2-EHA Annual sales for product RM 11.92 /yr Estimation of operating labor NOL = number of operators required to run the process unit per shift NON = number of operators needed to provide the shifts P = number of processing steps involving the handling of particulate solids NNP = number of non-particulate processing step handling .98 /yr 868.27: Utilities cost Heat exchanger E-102 E-107 E-108 E-101 Total hot and cold utilities RM RM RM RM RM 868.

000 /yr (After considering bonus and allowance) Source: MIDA Prices .29 + 31.23 (9)] 0. PO = = RM 1.28: Calculation for NNP Type of Equipment Distillation Column Heater Reactor Condenser Decanter Mixer TOTAL No.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-64 CHAPTER 1: FEASIBILITY STUDY Table 1. of equipment 2 1 1 3 1 1 NNP 2 1 1 3 1 1 9 NOL = [6.7 P2 + 0.500 RM 18.PRODUCTION OF 100.23 NNP] 0.29 + 31.5 = [6.5 = 2.7 (0)2 + 0.89 operators per shift = 3 operators per shift Pay for 1 operator per month Pay for 1 operator per year.

PRODUCTION OF 100. COL: COL = = = NOL× NON × PO 3 × 5× RM 18.37 operators = 5 operators Operating labor cost.000 /y .000 /yr RM 270. NON: NON = = 4.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-65 CHAPTER 1: FEASIBILITY STUDY Table 1.29: Assumptions Plant performed Plant is running Maintenance work Operation days 1 year Minimum 1 operator rest Weeks can be obtained by one operator 3 shifts/day 24 hours/day 30 days/year 335 days/year 48 weeks 2 weeks/year 46 weeks/year Shifts needed for a plant in a year: = = 1005 1 operator can obtain shifts: = = 230 Operators needed in a plant by considering the working shift.

62 14.0477 0.5% of maintenance & repairs 0.2% of maintenance & repairs 10 % of Operating Labour 15 % of Operating Labour 0.473.010.604.645988 Total Manufacturing Expenses.01 119.0716 1.30: Total manufacturing expenses Cost per production (RM/kg) Manufacturing expenses Direct production cost raw materials Utilities Hot and Cold utilities Miscellaneous Maintenance & Repairs Operating Supplies Operating Labor Direct Supervision & Clerical Labor Laboratory Charges Patents and Royalties Indirect Production Cost Local Taxes Insurance Plant Overhead 1 % FCI 1% FCI 50 % of Operating labor 2 % FCI 0.17 560.92 295.825.4775 0.991210588 3.7392 1.1937 0.041.1937 1.802.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-66 CHAPTER 1: FEASIBILITY STUDY Estimation of total production cost Table 1.3696 0.27 1.41 5.08 951.42 840.PRODUCTION OF 100.41 238.980.802.940.041.401.603.382.01% FCI Cost (RM/yr) 942.54 14.401.27 2.010.3696 119.082.95 2.89 9. AME .2387 786.

31: Total general expenses Cost per production (RM/kg) 358.412.203.660.123. ANNP Rate of Return APC = AME + AGE excluding depreciation 10 % FCI ATE = APC + ABD product total revenue .40188 3198. APC Depreciation.416.1089 1193.1089 1909. AME Administration Cost Distribution & Selling Expenses Research & Development 3 % of FCI 10% of FCI 3% of FCI Cost (RM/yr) 4.610.412.720565 7463.357.82 14.72 4.59812 94872 10662.6962 358.9140 Total Manufacturing Expenses.601.227.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-67 CHAPTER 1: FEASIBILITY STUDY Table 1.203.31: Rate of return Total Production Cost.35 Total General Expenses.113.00 125.Income Taxes (ANNP+ AD )/TCI x 100% 14.PRODUCTION OF 100.144.681319 94872 974.010.543.72 988.053. AGE Table 1.08 1.36 83015.368.44% 1193. ATE Revenue from sales Net annual profit.640.ATE 30% ANP ANP.28 87.123.664.696236 84209.512.90188 .64 60.92 37.383. ABD Total Expenses. ANP Income taxes Net Annual Profit.010.82 22.

81 TR 0 118000000 236000000 354000000 472000000 590000000 708000000 826000000 944000000 1062000000 1180000000 TC 140.104.19 VC 0 94.19 140.104.87 329.64 991.594.19 234.779.19 140.72 473.19 140.889.316.924.19 140.104.127.127.039.33: Estimation of total revenue Capacity 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 FC 140.253.PRODUCTION OF 100. P (RM/tonne) Break even point can be calculated as follows: Breakeven point : : 59.104.669.298.19 140.2.290.127.409.19 140.883.088.392.68 189.36 283.104.45 851.19 140.104.143.127.00 .773.696.16 tonne /year Table 1.215.19 140.620.519.127.00 Price.259.086.127.898.41 567.5.23 518.513.800.734.493.149.025.127.19 140.96 897.104.28 802.519.823.04 378.417.623.60 707.950. SP (RM/year) 2-EHA 140.104.32: Calculation breakeven point Component FC (RM/year) VC (RM/tonne) Selling Price.127.797.77 757.19 9462.127.986.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-68 CHAPTER 1: FEASIBILITY STUDY 1.19 140.104.127.104.127.114.104.55 423.363.99 118 × 107 11.104.8 Breakeven Point Table 1.403.104.189.127.09 662.32 1.92 613.721.629.127.993.13 946.

000.000.19 illustrated the graph capacity versus fixed cost.000.000. It also told that all capital investment early cost has been entirely recover at this point .00 400.000.000.20: Breakeven graph Figure 1.00 1.000.000.00 600.000. The intersection shows when the cost TR and TC get same.000.PRODUCTION OF 100. total cost and total revenue. It was obvious there have intersection between lines TR with TC. There is actually the minimum production the plant should run per year in order to achieve constant profit.00 Cost (RM) 800.16 tonne.200.00 1.00 TC TR FC Quantity (tonne) Figure 1.000.400.00 200.950.000. the breakeven point which is quantity identified as 59.000.000.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-69 CHAPTER 1: FEASIBILITY STUDY Break Even Graph 1.000.

PBP In order to estimate the payback period of profit from the total investment of the plant.512.812.209.34: Plant assumption Years of construction Plant operation life Working capital Total capital investment. TCI Total annual sales Total expenses.63 RM 1.60 /year 1st year = 10% of TCI 2nd year = 45% of TCI 3rd year = 45% of TCI .PRODUCTION OF 100.952. It is important to know when the plant minimum and maximum profit will be getting back after a few year operations. Table 1.113.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-70 CHAPTER 1: FEASIBILITY STUDY Calculation of Payback Period.124.26 RM 168.664 /year RM 84.495. the discounted and nondiscounted cash flow needs to be calculated respectively. ATE Bank loans 3 years 12 years RM 16.

00 1.664.155.640.793.92 125.36 101.116.155.64 139.678.155.601.495.144.664.543.664.36) (974.72 14.010.543.640.113.72 14.95) (168.72 14.601.543.610.36) (974.64 87.227.28 (68.812.610.010.664.543.664.601.64 87.72 14.357.144.664.62 (16.155.144.20 1.512.PRODUCTION OF 100.412.155.00 1.68) (54.397.60) 101.35: Calculation of nondiscounted cash flow ACI = AS + (ATEADD) ANCI = AI + ADD + AA + ANNP ΣANCI 0 (16.357.412.476.318.280.412.357.610.00 1.640.640.64 139.640.32) 87.664.36) (974.023.36) (974.113.92 (29.412.723.376.412.383.113.113.64 87.512.36 118.64 139.01 Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Al AS ABD ATE-ABD AA ANP = ACI .010.640.94 488.640.155.72 (974.512.664.39 912.640.656.00 1.610.28 37.611.113.424.227.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-71 CHAPTER 1: FEASIBILITY STUDY Table 1.545.22 285.00 14.64 87.357.804.547.023.010.812.601.611.383.135.010.610.653.113.28 37.023.010.512.664.611.64 139.405.64 87.711.63) (222.468.640.412.72 14.144.92 125.ABD AIT = 30%ANP ANNP = ANP .543.28 37.383.543.664.00 1.023.023.023.36 101.36 101.812.601.92 125.640.72 14.412.085.812.610.227.88) 125.611.640.86 184.72 14.383.72 14.412.64 139.36) (974.010.543.00 1.155.36) (974.72 14.611.00 16.228.640.383.037.512.36 101.557.412.227.357.756.28 37.124.509.383.601.383.611.429.023.72 14.357.64 87.132.512.64 139.68) (75.412.28 37.68) 890.28 37.010.640.64 139.92 125.023.36) (974.611.228.601.23) (120.640.640.290.131.227.92 125.640.155.113.640.656.357.611.64 87.113.155.383.64 (16.36 101.601.611.68) (75.656.610.412.26) (75.023.640.00 1.357.155.26) (92.92 125.36 101.36 101.36) (83.AIT .512.656.543.64 87.64 139.28 37.92 125.64 139.30 590.144.58 387.113.155.144.383.92 125.16) 139.144.543.835.512.66 692.383.144.36 101.357.87) (19.227.144.010.36) (974.952.383.26 1.610.227.92 125.023.512.64 87.444.640.228.495.28 37.412.00 1.601.610.227.610.357.512.36) (974.610.144.267.495.28 37.135.488.041.010.264.601.36 101.512.56) 37.113.227.810.92 125.227.26) (75.010.64 0 0 0 0 0 0 0 0 0 0 0 0 (97.454.72 14.28 37.144.228.36) (974.601.640.640.611.51) 82.099.640.664.64 87.543.357.357.36) (974.00 1.181.227.113.023.02 793.495.543.010.921.64 139.876.

After that.21: Nondiscounted cumulative cash flow graphs Figure 1.20 illustrated graph nondiscounted cumulative cash flow versus plant life of year.PRODUCTION OF 100. Nondiscounted Cash flow profile for i=0% 1E+09 80000000 60000000 40000000 20000000 0 0 -2E+08 -4E+08 Time (Year) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 pay back period = 2 NPV Cumulative Annual Cash Flow (RM) Figure 1. The plant finally shut down at year 15 with equipment then sold by its salvage and working capital definitely has been recovered.835.86. This is the profit after considered all total capital investment of the plant. Payback period to get the profit is 2 year after plant operation. construction phase start with fixed capital investment cost used to installing equipments and facilities on plant.429. Construction work finish at end of year 3 and the plant start at year 4 generate finish product for sales to cover up the early investment cost. the cash flow become positive value which is meant the profit begins to earn.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-72 CHAPTER 1: FEASIBILITY STUDY Table cash flow shows all cost on plant during 15 years operation including 3 year of construction the plant. From the graph. new land purchased required at time equal zero. . ΣANCI shows the plant begin to get profit on year 7 which is amount RM 82. At year six.

4 118424135.26) (75.228.363.56 0.20 13.15 ΣANCI 0 (14.619.259.43 0.19 38.16 0.217.06 32.673.539.895.35 0.943.62 43.116.86 42.74 108.619.60) (77.580.62 0.60) (62.72) (66.706.225.636.092.29 0.285.38 130.958.75) (26.75) (108.44 18.35 254.24 40.66 0.782.83 0.574.42 0.607.932.106.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-73 CHAPTER 1: FEASIBILITY STUDY Table 1.132.05 Year .606.010.686.516.28 14.845.31) (121.1 ΣANCI 0 (15.745.16 47.28 0.396.539.92) 63.60) 867.46 21.047.09 0.68) (75.03 26.093.36: Calculation of Discounted cash flow ANCI = AI + ADD + AA + ANNP fd 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0 (16.10) (71.198.673.656.98 19.76 0.619.843.812.65 16.84 67.19 0.644.962.69 0.43) (134.402.83) (56.742.97 52.791.579.529.87 124.733.460.092.720.75 0.280.412.978.13 0.57 227.25 0.24 51.62) 13.12 (14.77 14.42) (110.98) 50.644.651.4 101611640.58 0.21) (49.410.71 28.929.521.520.974.16) (136.087.508.835.086.761.67 9.125.757.025.549.64) (95.PRODUCTION OF 100.773.376.05 283.826.732.68 0.91 61.571.847.539.675.70 91.841.40 0.4 101611640.4 101611640.181.14 43.540.158.943.14 0.808.72) (52.525.360.714.942.4 101611640.68 39.258.206.686.50 0.029.725.91 0.340.32) (61.98 25.26 0.45 166.74) (102.018.39 0.796.11) (58.48) 40.834.07 35.034.97 68.809.10 0.30 33.619.142.121.332.87 0.199.439.16 0.656.175.119.539.561.028.521.30 89.08 0.284.373.497.484.654.284.514.357.838.56) (33.349.52 fdANCI I = 0.76 28.495.19 0.4 101611640.614.260.57 0.24 (15.965.56 48.272.737.83 0.152.518.06 (14.914.074.847.275.636.33 0.11 0.000.412.97 23.579.32 0.17 57.254.38 0.532.765.643.176.58 0.00 11.164.69 76.15 138.357.416.269.421.344.600.016.632.82) (171.92 153.766.086.538.44) (31.10) (57.449.59) (9.841.010.433.142.68) (54.72 7.100.600.854.322.4 101611640.368.631.369.23 0.57) (51.431.038.4 101611640.070.13 16.698.991.967.36 fd fdANCI I = 0.60) 101611640.761.92) (19.32 34.840.060.47 0.20 ΣANCI 0 (14.4 101611640.51 198.228.06 7.783.789.39) (37.61) 10.553.6 0.51 0.78 26.28 0.48 28.193.018.561.75) (152.693.18 fd fdANCI I = 0.4 101611640.06 29.33 0.374.21 0.884.638.48 0.70) (43.

RM 13. Discounted Cash flow profile 40000000 Cummulative annual cash flow (RM) 30000000 20000000 10000000 0 1 -1E+08 -2E+08 Time (year) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 I = 0.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-74 CHAPTER 1: FEASIBILITY STUDY Table shows discounted cash flow calculation on plant with 3 difference taxes rate which is 10%.2 Figure 1.22: Discounted cumulative cash flow graphs Figure 1.56.21 illustrated graph Discounted cash flow versus plant operation life.258. It obviously shows three type of graph which is considered taxes rates 10%. 8 and 9 with difference value RM 867. The highest rate will influence the decrease of profit and value at end project.193.038. . The profit also shows less than nondiscounted graph with pay back period is slow to achieve. This showed the minimum profit that plant could earn. The profit earn observed also in different year 7.86 and RM 10.PRODUCTION OF 100. 15% and 20% respectively. 15% and 20%.03 respectively.1 I = 0.791.484.15 I = 0.

791.6 Conclusion The overall market analysis can be summarizing as below: Table 1.734.63 RM 234.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-75 CHAPTER 1: FEASIBILITY STUDY 1. The 2-EHA plant is worthy to be constructing based on profit before and after the taxes and its year of payback period. In conclusion. RM 200 million given budget to build up the plant has lots of saving and the plant absolutely should be operating well. it is wise to consider all aspect in order to have a good view of economic analysis even it is using estimation value. 429.86 at year 7 RM 10.37: Overall plant values Selling price for 2-EHA Total capital investment Total cost Annual sales 2-EHA Maximum profit (Nondiscounted) Minimum profit (Discounted) Rate of return profit RM 11.PRODUCTION OF 100.2.664 /year RM 82. .835.512.113.025.800 /tonne RM 168.952.87 RM 1.44% Therefore.124.038.03 at year 9 60.

1.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-76 CHAPTER 1: FEASIBILITY STUDY 1.3. g) Environmental impact and effluent disposal. and the site and equipment layout planned in order to determine the successful of a business.3 SITE LOCATION The site location and plant layout is an important factor that must be considered before starting up a plant. h) Local community considerations.1 SELECTION CRITERIA The location of the plant can have a crucial effect on the profitability of a project. d) Availability of labor. According to Coulson & Richardson’s (2000). there may be an advantage to be gained by locating the plant within an area with preferential tariff . In an international market. with respect to the marketing area. c) Transport facility. 1. many factors must be considered when selecting a suitable site.1 Marketing area The plant should be located close to the primary market if the cost of transport a significant fraction of the sales price. 1. and the scope for future expansion. A good location is required to optimize the production of the plant. the strategic location also affect the performance of production and economic of plant. This is because a suitable site must be found for a new project.3. and for the environmentally acceptable disposal of effluent. i) j) Climate. f) Availability of suitable land. b) Raw material supply. For example. e) Availability of utilities: water. fuel. Political and strategic considerations.PRODUCTION OF 100. Besides. below is the factors that must be consider: a) Location. power. location which is near with the raw material will reduce the cost for transportation. Provision must be made for the ancillary buildings and services needed for plant operation.

In addition. These highways link major growth centers to seaports and airports throughout the peninsular and provide an efficient means of transportation for goods. So. best plant located is close to the source of the major raw material. Beside that.3 Transportation The transport of materials and products to and from the plant will be an overriding consideration in site selection. the site selected should have a good transportation lines to smoothen the production. 1.1. Air transport is convenient and efficient for the movement personnel and essential equipment and supplies. where this is also close to the marketing area.2 Raw Materials The availability and price of suitable raw materials will often determine the site location. 1. and labor suitable for training to operate the plant. and the proximity of the site to a major air port should be considered. but there should be an adequate pool of unskilled labor availability locally. 1. Local trade union customs and restrictive practices will have to be considered when assessing the availability and . railway station and sea port.1. Skilled tradesmen will be needed for plant maintenance.PRODUCTION OF 100.3. Skilled construction workers will usually be brought in from outside the site area.4 Availability of labor There are many job categories that have offer in a plant such as labor will be needed for construction of the plant and its operation.1. the quality of raw material must be maintained to produce a good product. and is suitable for long distance transport of bulk chemicals. So the transportation cost can reduce. Peninsular Malaysia's network of well-maintained highways is a boon to industries. a site should be selected that is close to at least two major forms of transport: road.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-77 CHAPTER 1: FEASIBILITY STUDY agreements. supportive government policies and a large local business community that is ready to do business with international corporations have made Malaysia a highly competitive manufacturing and export base.3. For example. Therefore. Malaysia's market-oriented economy. Road transport is being increasingly used.3. If practicable.

1. The major supplier of electricity in Malaysia is the Tenaga National Bhd and its tariff is uniform for all states. Malaysia has produced many quality workforces. 1. These all facilities are continuously being developed by state government as well as private developers to meet demand.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-78 CHAPTER 1: FEASIBILITY STUDY suitability of the local labor for recruitment and training.3.3. educated and productive in all sectors.5 Utilities Power and steam requirements are high in most of the chemical plants. In case of a major fire. the regional history of natural events of this type should be examined and the consequences of such occurrences considered for safety. the cooling water required can be taken from a river or lake.6 Environmental impact and effluent disposal Before selecting a plant site. industrial processes will produce waste products. Fire hazards in the surrounding area of plant site must not be overlooked. Process water may be drawn from a river.1.Power and fuel can be combined as one major factor in the choice of a plant site. assistance from the fire departments should be available. and fuel is required to supply these utilities . . Chemical processes invariably require large quantities of water for cooling and general process use. Protection from losses by fire is another important factor for selecting a plant location. from wells. In addition. or purchased from a local authority. Electrical power will be needed at all sites to run operations unit and generate heat. at other locations cooling towers will be needed. To fulfill all these demands. or from the sea.PRODUCTION OF 100. The disposal of toxic and harmful effluents will be covered by local regulations. and the appropriate authorities must be consulted during the initial site survey to determine the standards that must be met.1. and the plant must be located near a source of water of suitable quality. An environmental impact assessment should be made for each new project. The telecommunications is also needed to market the product. At some sites. and full consideration must be given to the difficulties and cost of disposal.

Some characteristics of peninsular Malaysia climate have been identified. which are very suitable for the operation of the plant: i. The land should ideally be flat.1. 1.8 Land Sufficient suitable land must be available for the proposed plant and for future expansion. the local community must be able to provide adequate facilities for the plant personnel: schools. Technology and Innovation (MOSTI)). On a new site.3. From May to September. The important price of land is to reduce the cost and must be suitable with the return of plant later on. the wind direction is variable with speeds below 8 m/sec.1.7 Local community considerations The proposed plant must be fit in with and be acceptable to the local community because the nature and facilities of community can have effect on the location of the plant. A full site evaluation would be made to determine the need for piling or other special foundations. well drained and have suitable load-bearing characteristics.3. Winds are generally light according to (Ministry of Science. This climate is more suitable for chemical plant. the predominant wind is from the South. The prices also vary according to the facilities available in the location. and recreational and cultural facilities. 1. housing.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-79 CHAPTER 1: FEASIBILITY STUDY 1.3. . Site location should provide storage and handling infrastructures. Wind Generally light wind. Some natural obstacles such as flood. On the average wind is calm about 40% of the time. banks.PRODUCTION OF 100. During inter monsoon month of April to October.1. Full consideration must be given to the safe location of the plant so that it does not impose a significant additional risk to the community.9 Climate A suitable is really necessary for the plant to operate with smooth condition. thunderstorm and others may cause bad effect to the plant. The predominant wind direction is from North from November to March.

These criteria make those country great attractions to foreign investors. . iv. In addition. This relative value drops to minimum around midday. and other inducements are often given by governments to direct new investment to preferred locations. The market in Malaysia is extremely busy at the moment: during 2004 it was estimated that the approved projects in the chemical and petrochemical sectors alone would result in career opportunities for around 3. Temperature Daily temperature is from 25oC to 31oC.500 extra people. while the minimum temperature is about 21oC.10Political and strategic considerations Political stability is an important consideration in selecting plant. and this trend has continued throughout 2005 and into 2006 (Nes Global). rain falls heavily during the monsoon season. iii. Rainfall Annual rainfall is about 2500mm. Capital grants. For the east coast of Peninsular Malaysia. The maximum mean temperature is about 32oC. There are also representative offices of several foreign banks that wish to establish a presence in the region. Relative Humidity The level of humidity is high at night and early morning. tax concessions.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-80 CHAPTER 1: FEASIBILITY STUDY ii. a well-developed financial and banking sector has enhanced Malaysia's position as a dynamic export base in Asia. which is from the end of September to early January. Most rainfall falls on March and September. The overriding of such grants can be the overriding considerations in site selection. Government policies that maintain a business environment with opportunities for growth and profits have made Malaysia an attractive manufacturing and export base in the region. 1. Malaysia has experienced a long period of political and economic stability. Sophisticated financial facilities are available through domestic and foreign commercial banks and their nationwide network of branches.3.1. such as areas of high unemployment.PRODUCTION OF 100.

. The plant must therefore be sited in a special zone provided by the government. Besides that.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-81 CHAPTER 1: FEASIBILITY STUDY 1. Tanjung Langsat is located in the heart of South East Asia that has an easy access to the rest of the world due to its closeness to the international shipping lane and its connectivity with other modes of transport. Terengganu Tanjung Langsat. Kemaman.2 SITE LOCATION SUGGESTED Production of 2-Ethylhexyl Acrylate is classified as a petrochemical project. The locations in Malaysia that have potential are: Teluk Kalong Industrial Estate. utilities.3.PRODUCTION OF 100. there is 404. Port Klang 1. Politeknik and institute Latihan Perindustrian can provide trainer or skilled labor for our plant.685 hectares land available in Tanjung Langsat with price of land about RM14 – 20 per m2. UiTM. This is because there are no suppliers in Johor.3. The training institute such as UTM Skudai. labor and transportation. b) Price of land According to Malaysian Development Authority (MIDA). the plant must in a strategic location that near with facilities.2. Beside that.1 Detail on Suggested Location Tanjung Langsat a) Raw material The raw materials for 2-Ethylhexyl Acrylate have to be import from overseas and malaysia. Johor Pulau Indah. c) Labor Have a lot of job opportunity that can attract many people to come because there are many facilities were provided for workers. The important criterion to setup plant is a location of plant. Tanjung Langsat is near with Indonesia where the country of workman.

PRODUCTION OF 100,000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-82 CHAPTER 1: FEASIBILITY STUDY

d) Utilities In Tanjung Langsat, the electricity will be supply by the Tenaga Nasional Berhad and there are different tariff that depends on class it categorized. For water, it will be supply by Jabatan Bekalan Air Johor with rate 0-20m3 – RM2.22 for industrial.

e) Transportation Designation of Senai Airport as air cargo hub provides the Port with sea-air link for high value and perishable products. In addition, this location also near to Pasir Gudang Port (8 km), Tanjung Pelepas Port and Tanjung Langsat port. Beside that, Tanjung Langsat

Port (TLP) is the third port in Johor, Malaysia and is an important terminal in Southeast Asia; it handles bulk cargo such as liquefied petroleum gas (LPG) and hazardous chemicals. TLP is located 12 nautical miles (22 km) from international ship routes, 5 km from the Johor Port and 30 km from Johor Bahru. We can use North-South Highway from Bukit Kayu Hitam to Singapore as a main road. In addition, Johor also has the railway station which is links to west and east coast region.

f)

Political and strategic consideration From the political view, with the strategic location, it can attract many investor from outside together make some investment. So it will increase the economic of Johor.

g) Facilities & Infrastructure      Peninsular Gas Utilisation (PGU) project A co-generation plant Tank farms are being developed for bulk storage of petrochemical liquid A 12km pipeline corridor, which facilitates feedstock, links the Pasir Gudang and Tanjung Langsat sites and data transfers. Johor Port (Pasir Gudang Port)

PRODUCTION OF 100,000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-83 CHAPTER 1: FEASIBILITY STUDY   With a 1,000-metre berth and a hazardous cargo jetty Three hazardous liquid bulk terminals to handle LPG, chemicals and petrochemicals Tanjong Pelepas Port, a world-class container port Tanjung Langsat Port Located adjacent to the 4,000 acres of industrial land in Tanjung Langsat. Equipped with a twin-berth jetty consisting of outer (30,000 DWT) and inner (7,000 DWT) berths

Figure 1.23: Location of Tanjung Langsat, Johor (Source: www.wikimapia.com) This is a map for available land in Tanjung Langsat, Johor. with Steel Bharu Sdn. Bhd( is for available land, it near

) that is the second largest in Asia. Beside that, the ) and Langsat Terminal One ( ).

location also near with Titan Tanjung Langsat (

PRODUCTION OF 100,000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-84 CHAPTER 1: FEASIBILITY STUDY

Telok Kalong a) Raw Material Telok Kalong is near to Gebeng, which can supply raw material (acrylic acid) to our company. Therefore, the cost transportation can reduce.

b) Price of land The land price is about 1.8 – 44.99 per m2 and the available land is 125.10 hectares. Terengganu’s industrial land is among the cheapest in Malaysia, compared to other states.

c) Labor The centre of Malaysia's petrochemical development is on the east coast of the Malaysian peninsular in Terengganu and Pahang. Terengganu boasts a highly competitive and reasonable wage structure that compares favourably to highercost locations within Malaysia and Asia. Malaysia is also well-known for its commitment to labour welfare and corporate social responsibility. Therefore the young citizens in Pahang, Kelatan and Terengganu will focus to fill the vacancies in our plant.

d) Utilities Water falls under the jurisdiction of the state, and is treated and distributed by the Terengganu Water Company (SATU) with tariff 70m3 – RM1.15 for industrial. At the moment, potable water is supplied for both industrial and domestic use. The electricity will be supply by the Tenaga Nasional Berhad.

e) Transportation Transportation facilities around Telok Kalong Industrial area are well developed to cater the import export activities. As an industrial estate in Terengganu, therefore the transportation facilities have been providing such as Kuala Terengganu Airport, Kemaman Airport and Kerteh Airport. The location is also

For authorization aspect. industrial gases.PRODUCTION OF 100.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-85 CHAPTER 1: FEASIBILITY STUDY near to the Kemaman Port. and Kuantan Port. Kerteh Minor Port. Karak Highway and East-West Highway connected the Telok Kalong with other place. the Terengganu state government provides incentives to encourage and attract investors. The major consideration to select the best site location is port facilities. Besides. Kemaman Port is vision as Malaysia’s future deepwater port and gateway to Asia Pacific. This is because water transportation is important to export our product and importing the raw materials. demineralised water and steam Training centre  TATI or Terengganu Advanced Technical Institute TSTC or Terengganu Safety Training Centre TPTTC or Terengganu Plastic Technology Training Centre University Technology MARA Petronas Training Institute University Putra Malaysia Pusat Latihan Sirim Kertih Port Centralised tankage facilities Mainly bulk liquid port  Kuantan Port . g) Facilities & Infrastructure    Gas processing plants Peninsular Gas Utilization (PGU) project Centralised utility facilities  Supply of utilities such as power. f) Political and strategic consideration Terengganu as an ideal base for investors wanting to keep a ceiling on their costs while operating in the dynamic regional economy of Asia. It is an all weather port facing South China Sea.

Bhd (KBC) and Malay-sino Chemical Industries Sdn. From this figure.wikimapia. Terengganu (Source: www. Kemaman Bitumen Company Sdn.24: Location of Teluk Kalong.com) Figure 1. Beside that. Bhd. .23 is a map of location in Teluk Kalong.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-86 CHAPTER 1: FEASIBILITY STUDY - Centralised tankage facilities Container and bulk liquid port Railway linking Kertih. is a location for our ). Terengganu. it also shows the location is near with Terengganu Safety Training Centre ( ).PRODUCTION OF 100. Gebeng and Kuantan Port Figure 1. it plant (available land) and it is near with Konsortium Kemaman Port ( also near with others Chemical Plant and others industries ( ) such as Nitrate Acid Plant.

e) Transportation Selangor has all the modes of transportation such as land. Our raw material will be imported using ship and usually uploads the product that the ship carried at international airport. c) Labor The capacity of resident in Port Klang is high. this town was become the centered of the job vacancies in Klang and Shah Alam. excellent connectivity. there are roads connecting major towns in Selangor and other states. It is decided that the source of raw materials play the most important role in selecting the most suitable location for our plant. PKFZ's (Port Klang Free Zone) strategic location in Port Klang. Through water and air. It is only about RM 25. North Port and West Port are two international airports. water and air. Since our raw material will be imported from overseas that is from China so we need to setup a plant that near to the port or airport and also have good road facilities to supply the product. b) Price of land Land price in Port Klang Free Zone is cheap and reasonable compared the others state. d) Utilities Water is distributed by the SYABAS with tariff 0-35m3 – RM2. there are seaports and airport. .99 per m2.00 to RM 45. As known. Port Klang a) Raw Material There are factors that can be compared among all the locations selected. Besides. student from University or college can do their internship in our plant.07 for industrial and the electricity will be supply by the Tenaga Nasional Berhad. Through land. This is because.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-87 CHAPTER 1: FEASIBILITY STUDY Pulau Indah. Beside.PRODUCTION OF 100. This is because the supplement of raw materials will also have a great impact on cost of transportation.

Selangor also served by 2 trunk roads run parallel to coastline traverse from north to south PLUS highway.64 hectares (5. Besides.324.PRODUCTION OF 100. efficient services and attractive incentives all make perfect business sense. In addition. Malaysia's premier portside development offers investors all the essential components to success in international markets. Port Klang Free Zone area is served by 2 major airports. It is also a residential development featuring a resort lifestyle and enhanced commercial and institutional centre that brings potential customers practically to our plant. For air transportation. Westports has extensive road and rail linkages from Pulau Indah that extends to all parts of Peninsular Malaysia  North Port Centralised tankage facilities . both located in Selangor. The 2 airports are Subang Airport and Kuala Lumpur International Airport.000 TEUs (20 foot equivalent units). f) Political and strategic consideration This site located off the coast of Selangor at Westport. In addition to its sound infrastructure.11 acre). this environment friendly park is more than an industrial development. g) Facilities & Infrastructure  Training centre  University Technology MARA Politeknik Shah Alam UNISEL West Port Centralised tankage facilities Westports' large docking facility wM bring transport costs down as it can accept vessels of higher tonnage Can berth vessels up to 14.154.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-88 CHAPTER 1: FEASIBILITY STUDY state-of-the-art facilities. Covering a sprawling 2. the biggest port in the region and a bustling zone of business opportunities for investors. state of the art information technology (IT) and comprehensive sea connectivity.

PRODUCTION OF 100.3.6 km. The plant should be placed in an area where sufficient labor supply is available and each location have it.wikimapia.3 show the available land in Pulau Indah. Beside that.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-89 CHAPTER 1: FEASIBILITY STUDY - Container and bulk liquid port Figure 1.2 The summarized of the comparison of suggested locations From factors that we consider to choose the location for our plant. Terengganu is cheaper than other locations that is RM4. Port Klang (Source: www. Therefore the locations are already develop and it . the area available for each location are sufficient for our plant and near with ports (important transport).95 per m2. From the maps. it show that each site location are strategic because near with others industries and chemical plant. The location ( ) is in Westports Malaysia and near with Northports ( ). the land prices in Teluk Kalong.2.25: Location of Pulau Indah. This is because the training institute is near and the student can do their internship or work in our plant after graduated such as in Teluk Kalong which is near with Terengganu Safety Training centre (TSTC) about 3. Port Klang. 1.com) Figure 3.

The raw material for our plant will buying at BASF.6 km from Kemaman town 125. From this factor.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-90 CHAPTER 1: FEASIBILITY STUDY give advantages for our plant because easy to attract investor and have special incentives that offered by state government such as investment tax allowance of 60% of qualifying capital expenditure.685 hec Pulau Indah. Table 1. Kemaman 9. So the distance with raw material can reduce the cost transportation. Terengganu is near with raw material than other locations.99 42 km from Johor town 404. The important in site location is cost. Gebeng or imported from China.00 – 44. Therefore the plant shall be build up near with raw material. Johor Distance from town Area available Land prices (RM/m2) Developer JCORP (Johor Corporation) SSIC Berhad (Selangor State Investment Centre) PMINT (Perbadanan Memajukan Iktisad Negeri Terengganu) Residential area Pasir Gudang Kempas Meru.44. it shows that Teluk Kalong.10 hec .20 25. Port Klang 10 km from Shah Alam 1000 hec Telok Kalong.PRODUCTION OF 100. Klang Shah Alam Kertih Paka Kemaman Electricity supply Tenaga Nasional Berhad Tenaga Nasional Berhad Tenaga Nasional Berhad 14 .99 4.38: Comparison of Suggested Location for 2-EHA Plant Factors Tanjung Langsat. The each area locations are secluded and separated from most residential area so the safety of resident is assured and give low impact on the environment.95 .

50 The minimum monthly charge is RM7.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-91 CHAPTER 1: FEASIBILITY STUDY Electricity tariffs Peninsular Malaysia Rates Unit (RM) Tariff D – Low Voltage For overall monthly consumption between 0-200 kWh per month For all kW sen/kwh 32.20 Tariff E1 – Medium Voltage General For each kilowatt of maximum demand per month RM/kw 23.30 .80 The minimum monthly charge is RM7.60 The minimum monthly charge is RM600.40 For all kW sen/kwh 26.20 For overall monthly consumption more than 200 kWh per month: For all kWh sen/kwh 34.PRODUCTION OF 100.30 For all kWh during peak period sen/kwh 28.10 For all kWh during off-peak period sen/kwh 17.00 Tariff E2 – Medium Voltage Peak/Off-Peak For each kilowatt of maximum demand per month during peak period RM/kw 29.

96 Industrial/Commercial 0 .RM2.07 More than 35 m³ RM2.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-92 CHAPTER 1: FEASIBILITY STUDY The minimum monthly charge is RM600.PRODUCTION OF 100.95 More than 70 m3 RM 1.22 More than 20 m³ RM2.00 Water supply Water Tariffs Jabatan Bekalan Air SYABAS Johor (JBA) Industrial/Commercial 0-20m³ .15 Minimum RM15.15 Subject to RM50.00 charge - Airport Changi Airport.00 Commercial First 70 m3 .00 The minimum monthly charge is RM600.60 For all kWh during peak period sen/kWh 26.RM2. Senai Subang Airport Kuala Terengganu .48 RM36.28 Terengganu Water Company (SATU) Industrial RM 1.RM 0.00 minimum charge Minimum charge-RM Minimum charge – 18.35 m³ .00 Tariff E3 ─ High Voltage Peak/Off-Peak For each kilowatt of maximum demand per month during peak period RM/kW 29.60 For all kWh during off-peak period sen/kWh 16.

PRODUCTION OF 100. Skudai University Technologi MARA Politeknik Pasir Gudang Institute Latihan Perindustrian (Pasir Gudang) Kolej University Tun Hussein Onn Petrochemical Chemical University Technology MARA Politeknik Shah Alam UNISEL Petrochemical Chemical University Technology MARA Petronas Training Institute University Putra Malaysia Terengganu Safety Training Centre (TSTC) Terengganu Plastic Technology Training Centre (TPTTC) Pusat Latihan Sirim PLUS Highway Karak Highway East-West Highway North Port West Port Kemaman Port Kuantan Port .000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-93 CHAPTER 1: FEASIBILITY STUDY Airport Airport Kerteh Airport Kemaman Airport Port Johor Port/Pasir Gudang Port Tanjung Pelepas Port Tanjung Langsat Port Road facilities North-South Highway from Bukit Kayu Hitam to Singapore Type of industries Training institute Petrochemical Chemical University Technology Malaysia.

Port Klang BASF Petronas Chemicals Sdn Bhd.. 1986 and the Income Tax Act.. Malaysia Qingdao OnBillion Industrial Co.... Ltd. It will pay tax on 30% of its statutory income. Ltd. Ltd. Malaysia Qingdao OnBillion Industrial Co.. China 2-Ethylhexanol Haihang Industry Co.. Malaysia Qingdao OnBillion Industrial Co.. Terengganu Special Land Premium -Land premium of RM5. Port Klang The principal incentives in the manufacturing sector are contained in the Promotion of Investment Act. Ltd.PRODUCTION OF 100.. Ltd. China Haihang Industry Co.... Ltd. Johor BASF Petronas Chemicals Sdn Bhd. China Teluk Kalong. China Tianjin Xinyuantehui Chemical Co. Ltd.. Ltd. Ltd. Johor Pulau Indah. Ltd.. China Tianjin Xinyuantehui Chemical Co.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-94 CHAPTER 1: FEASIBILITY STUDY Table 1.. with the Teluk Kalong. Ltd. China Haihang Industry Co.A company granted Pioneer Status enjoys 5-year partial exemption from the payment of income tax..39: Raw Material Supplier for Each Location Raw material supplier Acrylic Acid Tanjung Langsat.. Terengganu BASF Petronas Chemicals Sdn Bhd.. China Tianjin Xinyuantehui Chemical Co. China Pulau Indah. 1967 General Incentives: Pioneer Status . China Trust & We Co. China Table 1.40: Packages of Incentives Offered by State Governments Tanjung Langsat. China Trust & We Co. China Trust & We Co. Ltd.00 per meter squares to eligible projects -For medium & high technology industries -For first 2 hectares only Discounts on Land .

-Industrial Buildings Allowance (IBA) Incentives For Research And development Incentives For Training Tariff Protection -The incentives are designed to grant relief from taxes in various forms Exception from Import duty on Direct raw materials/ Components -Manufacture of goods for export and the domestic market exemption period commencing from its Production Day (defined as the day its production level reaches 30% of its capacity). Investment Tax Allowance (ITA) . a company may apply for Investment Tax Allowance (ITA). Negotiable for periods more than a year Pioneer Status -Tax exemption limit is increased from 70%80% of statutory income for 5 years Investment Tax Allowance -ITA is increased from 60%-80% of qualifying capital expenditure Import Duty Exception on Raw Materials -Full import duty exception is given on raw material. components and parts not available locally used in manufacture of finished products for domestic market .A company granted ITA gets an allowance of 60% of qualifying capital expenditure (such as factory.PRODUCTION OF 100.Any unutilised Premium -Discounts from 10%25% according to districts -More than 50 workers in first year intake Differed Payment for Land Premium -Allowed for 1 year after 20% down payment of deposit.As an alternative to Pioneer Status. . .000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-95 CHAPTER 1: FEASIBILITY STUDY Pioneer Status -Investment Tax Allowance (ITA) -Reinvestment Allowance (RA) Incentives For Export Export Credit Refinancing (ECR) Scheme -Abatement Incentives For Exports -Double Deduction Of Export Credit Insurance Premiums. . machinery or other equipment used for the approved project) incurred within 5 years from the date on which the first qualifying capital expenditure is incurred.Companies can offset this allowance against 70% of their statutory income for each year of assessment. plant.

.PRODUCTION OF 100.Petroleum Export Terminal. Consists of three sections: .Upgraded to 17 meters in October 1996. The remaining 30% of statutory income will be taxed at the prevailing company tax rate.000 tons per day. .000 DW.84 million tons/year (Tango crane).Pipe side 8"-12" (50 in number). Pasir Gudang Port Haulers: .Kontena Nasional Sdn.East wharf (684 m).41: Port facilities Kemaman Port Dedicated Liquid Bulking Terminal under construction: . Table 1.Ship capacity up to 40. It is an all weather port facing South China Sea. .000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-96 CHAPTER 1: FEASIBILITY STUDY allowance can be carried forward to subsequent years until fully utilised. The draft at East Wharf is initially 13 meters draft.Handling capacity 15. .Bhd.Supply Base (650 m). . . . Viewed as Malaysia's future Deepwater Port and Gateway to Asia Pacific. Currently handles dry general and liquid cargo on average two to three million tons/year. Current capacity estimated at 6.Length of 240 meters at depth of 14 meters.

280 acres out of total built up area of 1350 acres 7.Bhd. A special jetty for handling liquid cargo mainly vegetable oil and hazardous cargo jetty for handling fuel oil and chemicals.Multimodal Freight Transportation Sdn.Shapadu Kontena Berhad. Terminal -Infrastructure & Equipment Berth length -11 berths (16 meter depth) 3200 meters Terminal capacity . Bhd.Southport Port Services Sdn.Maha Miro Enterprise Trading Sdn. All transport operators provides transport services for the shippers in the free zone. Managed by Johor Port Sdn.Bhd. investors interested in setting up their base at PKFZ will enjoy 100 per cent foreign equity with free zone tax benefits and unrestricted reparations of profits and capital. West Port As such.Bhd. . . . .000 acres.PRODUCTION OF 100.MISC Haulage Sdn. PKFZ will also serve as a one stop centre to help start up operations and interface with government agencies. .000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-97 CHAPTER 1: FEASIBILITY STUDY .Johor Port Transport Sdn. . which covers 1.Bhd.Usaha Enterprise (Edar) Sdn.2 million TEU capacity per year . Transports: . Facilities: Six berths with maximum depth of 13 meters to cater for containers.Bhd. The port has direct access to the main shipping routes of the world..Konsortium Perkapalan Berhad. Bhd. general and dry Bulk cargoes.

PRODUCTION OF 100.2.3.3 The weightage study 1 Poor 2 Low 3 Average 4 High 5 Excellent Table 1.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-98 CHAPTER 1: FEASIBILITY STUDY 1.42: Comparison of location in term of weightage study Factor Weightage Tanjung Langsat Distance from town Area available Land price Raw material supplier (distance) Residential area Electrical supply Water supply Airport Port Road facilities Training institute Climate Political view Total 5 5 5 5 5 5 5 5 5 5 65 3 3 4 3 3 5 4 4 4 5 47 4 3 4 4 3 5 3 3 4 5 50 5 4 4 5 4 4 4 5 4 5 57 5 5 5 2 4 3 4 5 3 5 4 4 Pulau Indah Teluk Kalong .

The nearest seaport to Telok Kalong Industrial area is Kemaman Port. This industrial park which has ready-built industrial land and factories can allocate medium and heavy industries. literacy level among the work force is high and can be easily trained.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-99 CHAPTER 1: FEASIBILITY STUDY 1.3 SITE LOCATION SELECTED From the overall comparisons and weightage study between the 3 potential sites for the proposed plant project. University College of Terengganu 3. we have decided to choose Teluk Kalongt in Terengganu as the site for our plant. The price of land in Teluk Kalong is cheap and reasonable price with many lands available for future expansion. R&D and manpower training Beside that. half skill and full skill institutions set up for the purpose of accommodating manpower for industries are available in Terengganu. It is an all weather port facing South China Sea. Training. 1. University Technology MARA 2.3. Terengganu Safety Training Center ( TSTC ) . These include: Low land premium Pioneer status Investment Tax Allowance (80% of expenditure) Partial exemption of income tax (15% income) 5 years tax exemption Infrastructure allowance Import duty exemption Export. The area is secluded and separated from most residential area. These institutions are includes.PRODUCTION OF 100. transportation facilities around Telok Kalong Industrial area are well developed to cater the import export activities. Terengganu Advanced Technical Institute ( TATI ) 4. It is also close to primary market and raw material source. Therefore the supplement of raw materials will also have a great impact on cost of transportation. This port is vision as Malaysia’s future deepwater port and gateway to Asia Pacific. Furthermore. chemical and petrochemical industries. The more attractive incentives offered by the Johor State Government.

PRODUCTION OF 100. Petronas Training Institute 7.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-100 CHAPTER 1: FEASIBILITY STUDY 5. Industrial Training Institute The labor costs or salary around Telok Kalong Industrial area and the surroundings are quite reasonable and cheap due to the cost of living in Terengganu which is quite low compared to other states in Malaysia. . Terengganu Plastic Technology Training Center 6.

Security Post Future Expansion Plant Area Maintenance Building Main entrance/ Exit Security Post Assembly Point R&D Control Room Safety Office Changing Room Administration and HR Building Entrance Waste Water Treatment Car Park High level management clinic Cooling Tower Fuel Storage Boiler House Compressor House Canteen Smoking area ( Designed meeting locations.PRODUCTION OF 100.26: Plant Layout Emergency escape routes) . ft.000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-101 CHAPTER 1: FEASIBILITY STUDY Product storage Raw material storage Raw material storage Water Tank Fire Station Exit M O T O R C Y C L E P A R K Smoking area Car Park Workers And visitors Sport Center Office 610 sq. Figure 1.

000 TONNE PER ANNUM OF 2-ETHYLHEXYL ACRYLATE 1-102 CHAPTER 1: FEASIBILITY STUDY .PRODUCTION OF 100.