I/EC

A W O R K B O O K
COSTS

F E A T U R E
by Walter L. Hardy, Foster D. Snell, Inc.

Phenol-Formaldehyde Resin Manufacture

$160,000 for equipment 6.65 million pounds molding
, powder
+
= +
$100,000 for working 1.65 million pounds cast prod-
capital ucts

A HE phenolic resins, one of the

oldest of the synthetics, are still Table 1. Phenol c Resin Sales
showing a healthy growth. In spite (Thousands of pounds)
of the phenomenal development and Use 1955 1954 195S 1952
production of other plastics, the Molding materials 200,000 172,000 204,000 158,000
phenol-formaldehyde resins have Adhesives and bonding
many physical and chemical proper- Laminating resin 49,000 64,000 71,000 69,000
Abrasives 16,000 11,000 12,000
ties as yet unduplicated by other Friction materials 22,000 15,000 16,000
materials. T h e data on phenolic Insulation 52,000 37,000 21,000
resin sales for the last 4 years are Plywood 36,000 28,000 34,000 40,000
All others 27,000 13,000 18,000
given in Table I, from the U. S. Protective coatings 25,000 22,000 26,000 24,000
Tariff Commission. By 1960, the Miscellaneous 29,000 27,000 28,000 61,000
sales of phenolics should reach 600 456,000 389,000 430,000 352,000
million pounds and approximately
double every 10 years thereafter
(based on a prognostication of 200 000, exclusive of buildings and site documented in the literature, to
million population by 1975). (Table I I I ) . Such a plant will pro- which the reader is referred for such
An analysis of Table I shows that duce 20,000 pounds of resin per 8- background. In production, the
approximately 4 4 % of the 1955 pro- hour day. This production is divided batch process has generally been
duction of phenolics was consumed to produce 6650 pounds of cast employed. A continuous process has
in molding powder, 4 4 % as an ad- phenolic products and 26,700 pounds been developed and is in use with
hesive or bonding agent in laminat- of molding powder containing 5 0 % certain economic advantages. Batch
ing, abrasives, insulation, plywood, wood flour filler. production is divided into "one-
and others, 6 % in protective coat- T h e history and chemistry of stage," wherein the entire formalde-
ings, and 6 % in miscellaneous uses phenol-formaldehyde resins is well hyde charge is added to the initial
including cast sheets, rods, tubes,
etc.
T h e current productive capacity
(530 million pounds) in the United
States approximates the 1955 sales.
To meet the increasing demand, new
facilities will have to be installed.
Some of these new facilities will be
installed by users (captive plants such
as in the electronics and insulation
industries), others by current or new-
prime producers. New foreign in-
stallations are planned and still
others will be considered as the
future requirements demand in-
creased capacity.
A phenol-formaldehyde resin
plant, of a size suitable for captive
use or for foreign installation, can
be installed for approximately $160,- Figure 1. Flowsheet

VOL. 48, NO. 9 · SEPTEMBER 1956 45 A

IEC COSTS · A Workbook Feature

Maintenance cost (including

Table II. Material Balance maintenance labor), 5%/year
of total erected cost $ 31.75
A. Cast Resin Depreciation, 10% total erected
Cost of Materials plant cost 63.50
Lb./Lb. Interest, 6% on total plant in-
Per lb. Per lb. vestment
Raw Material Product 64.80
raw material product Insurance, taxes, etc. at 4 % of
Phenol

6666
tali
$0.17 $0.1395 total plant investment 43.20
Formaldehyde (37%) 0.07 0.064 $ 203.25
Caustic (100%) 0.029 0.0001 Total estimated production cost
Lactic acid 0.235 0.0018 per day $1091.65
$0.2054
Molding Powder A s s u m e a p r o p o r t i o n i n g of t h e
Phenol 0.408 0.17 $0.0695 t o t a l e s t i m a t e d d a i l y p r o d u c t i o n cost
Formaldehyde (37%) 0.456 0.07 0.032 b e t w e e n t h e cast resin a n d m o l d i n g
Flour (wood) 0.500 0.015 0.0075
Hexa 0.029 0.242 0.0070 p o w d e r . T h e t o t a l cost of p r o d u c -
Misc." 0.016 0.15 0.0024 i n g these p r o d u c t s t h e n b e c o m e s :
$0.1184
' Includes cost of lubricant, dye, and catalyst (H:SO<). Molding
Cast Resin Powder
(6630 Ib./day) (26,700 Ib./day)
reaction batch, and "two-stage" Estimated total production cost per day $363.88 $727.77
Estimated total production cost per pound of product 0.0546 0.0272
p r o c e s s i n g , w h e r e i n p a r t of t h e Raw material cost (Table I) 0.2054 0.1184
formaldehyde enters the initial re- Total cost per pound of product $ 0.2600 $ 0.1456
action a n d the balance at a later Overhead Costs
s t a g e . F i g u r e 1 shows a flowsheet Administration, 5% of manufacturing or total cost $ 0.0130 $ 0.0073
for t h e p r o d u c t i o n of m o l d i n g p o w - Selling cost, 10% of manufacturing or total cost 0.0260 0.0145
d e r a n d cast resin p r o d u c t . T y p i c a l Total cost, less profit $ 0.2990 0.1674
of t h e c a t a l y s t s i n d i c a t e d o n this
on a design envisioning three re- T h e c u r r e n t p r i c e for cast p h e n o l -
flowsheet a r e t h o s e g i v e n in T a b l e
a c t i o n k e t t l e s — t w o cast i r o n w i t h f o r m a l d e h y d e resin in sheets ( o p a q u e ,
I I for t h e m a t e r i a l b a l a n c e .
steel j a c k e t s a n d o n e m a d e of nickel 23 c u . i n c h e s p e r p o u n d ) is 74 c e n t s
A full d e s c r i p t i o n of t h e v a r i o u s
w i t h steel j a c k e t . N i c k e l a n d glass- per pound; a n d for w o o d flour-
p r o c e s s i n g possibilities a n d t h e m a t e -
lined storage a n d b a t c h i n g tanks filled m o l d i n g p o w d e r , 21 c e n t s p e r
rials of c o n s t r u c t i o n for t h e p r o c e s s -
a n d transfer p u m p s a r e r e q u i r e d for p o u n d . T h e e s t i m a t e d b a l a n c e sheet
i n g e q u i p m e n t is i m p r a c t i c a b l e d u e
phenol and formaldehyde. L e a d is o n a y e a r l y basis is p r e s e n t e d in
to t h e g r e a t v a r i e t y possible. The
g e n e r a l l y e m p l o y e d for c a s t i n g m o l d s . T a b l e I V . T h e p l a n t size i n d i c a t e d
p l a n t d e t a i l e d h e r e i n is b a s e d o n
O t h e r e q u i p m e n t is of u s u a l steel s h o u l d p r o v e e c o n o m i c a n d profit-
" o n e - s t a g e " operation to p r o d u c e
c o n s t r u c t i o n w i t h t h e e x c e p t i o n of a b l e for i n s t a l l a t i o n b y a c a p t i v e
b o t h cast p r o d u c t s a n d m o l d i n g
t h e r o l l i n g m i l l rolls, w h i c h a r e u s e r o r a foreign c o m p a n y . The
powders. T h e calculations are based
u s u a l l y nickel p l a t e d w h e n l i g h t - y e a r l y p r o d u c t i o n is a p p r o x i m a t e l y
colored products are desired. 1,650,000 p o u n d s of cast p r o d u c t s
T a b l e I I I gives a b r e a k d o w n of a n d 6,650,000 p o u n d s of m o l d i n g
Table III. Estimated Investment Cost
e q u i p m e n t cost e s t i m a t e s . T h e s u m powder.
of Phenolic Resin Plant
of these, p l u s a n e s t i m a t e d w o r k i n g A s i m i l a r p l a n t c o u l d be e s t i m a t e d
Operation : 8 hours/day, 250 days/year
Production: 6650 pounds/day cast resin c a p i t a l r e q u i r e m e n t of $ 1 0 0 , 0 0 0 , a l o n g t h e s e s a m e lines w h i c h w o u l d
26,700 pounds/day molding results in a t o t a l p l a n t i n v e s t m e n t of p r o d u c e a n y r e q u i r e d p r o p o r t i o n of
powder a p p r o x i m a t e l y $ 2 7 0 , 0 0 0 , exclusive m o l d i n g p o w d e r , cast p r o d u c t s , o r
Equipment:
Reaction kettles $ 8,900 of b u i l d i n g s a n d site. T h e e s t i m a t e d a d h e s i v e - g r a d e resin. Laminating
Ball mills 16,200 cost p e r d a y for t h e p r o d u c t i o n of a n d b o n d i n g e q u i p m e n t c a n be esti-
Roller mills 8,700 6650 p o u n d s of cast p r o d u c t s a n d
Crushers 950 m a t e d as r e q u i r e d .
Conveyor 1,600 2 6 , 7 0 0 p o u n d s of m o l d i n g p o w d e r
Air separator 1,600 equals $1091.65 per 8-hour day,
Tanks 41,300
exclusive of r a w m a t e r i a l s , c a l c u - Table IV. Estimated Balance Sheet
Floor pan 600
Vacuum pumps 7,500 l a t e d as follows (on t h e basis as in
Condensers 1,425 Table III). Per Pound Annual
Dust collector 760
Motors 5,900 Income : Gross
Labor (excluding maintenance Cast phenolic
Fans 300 labor)
Oven 10,000 sheet $0.75 $1,230,000
Unskilled, $1.60/man-hour 89.60 Molding powder $0.21 $1,405,000
Instruments 3,050 Semiskilled, $2.10/man-hour 50.50 Total $2,635,000
$108,785 $108,785 Supervision, $3.00/man-hour 24.00
Estimated erection cost (ex- Reserve at 20% 32.80
eluding buildings) 50,000 Expenses : Total Costs
$ 196.90 Cast phenolic
Total erected cost 158,785 Utilities sheet $0.2990 $ 498,000
Contingencies at 10% 10,880 Steam $ 620.00 Molding powder $0.1674 $1,120,000
Estimated working capital 100.000 Power, New York industrial Total $1,618,000
Total plant investment $269,665 rates 31.50
(excluding buildings) Water 40.00 Income: Net $1,017,000
$ 691.50

46 A INDUSTRIAL AND ENGINEERING CHEMISTRY