Copyright

“The author and the adviser authorize consultation and partial reproduction of this thesis for

personal use. Any other reproduction or use is subject to copyright protection. Citation should

clearly mention the reference of this work.”

Malayan Colleges Laguna, May 2019

The Adviser: The Authors:

Engr. Tristan Roy Panaligan John Vincent A. Gabin

John Jason E. Pacil

John Achilles C. Ricafrente

 Abstract

The emerging increase in population each year made rise in the demand of fertilizer to keep up

with the needed supply of the food. NPK fertilizer contains all primary nutrients which are

essential to the crops. The plant capacity was based on the consumption, import, and export of

the country. NPK fertilizer was marketed at the Philippines and the calculated plant capacity is

about 32,825 MT per year along with a 50% market share due to competitors. Production of

NPK fertilizer using nitrophosphate route is the most common process use in producing NPK

fertilizer. The production of nitric acid using Ostwald process is the most feasible basing on cost

of starting material, power consumption, HNO3 yield, number of converter reactor, max

temperature allowable. Light Industrial Science Park located at Sto. Tomas, Batangas, was

chosen for the plant site basing from price of land, electric power cost, water supply, accessibility

of raw material, labor supply, and distance from the target costumer using PROMETHEE. The

total capital cost, including fixed capital investment and working capital, is about

2,788,833,244.86 PHP. The gross profit of the project at 100% capacity, which is at year 2024, is

about 1,480,428,841.26 PHP. IRR calculated is about 26% and the cost of capital is about

15.33% which makes the project economically feasible. The actual payback, based on cash flow,

is about 4.55 years.