Proposal – Manufacture of Polymer Stabilizers (Antioxidants, UV

Absorbers, Light Stabilizers and Flame Retardants) for Plastic Industry

Rationale behind Project Selection:

Plastic has become an essential material in virtually every aspect of modern day
life. Recent advances in plastic manufacturing and processing have led to ever
more applications in which plastics replace other materials such as glass, metal,
paper and wood.

Plastic generally ages rapidly under the effects of light, oxygen and heat, leading
to:
 Loss of strength, stiffness of flexibility
 Discoloration
 Scratching and loss of gloss

Use of polymer stabilizers could be a good solution to avoid the above problems.

In the Kingdom, Gulf Stabilizers Industries (a joint venture between Al-Zamil

Group of Companies and International Manufacturer of Specialty Chemicals -
Great Lakes Chemical Corporation) is the company making antioxidants. Middle
East and surrounding region is experiencing rapid growth in polyolefin and other
plastic manufacturing industries. There is a good growing market for polymer
stabilizers in Saudi Arabia.

Project Technical Data:

The project proposes to manufacture Phenolic and Phosphate based Anti-

oxidants and Non-Dusting Blends in phase 1. An optimum capacity for phase 1
would be 5000 tons per annum of Octadecyl propionate type, methylene type
and phosphate types. A common intermediate (PP base) of 5000 tons per annum
would also need to be included in the plant.

Phase 2 could take up the manufacture UV Absorbers, Light Stabilizers and

Flame Retardants.

Phase 3 could be a backward integration to produce 2 key raw materials – 2,6

and 2,4 ditertbuytl phenols.

Raw Materials:

Methanol – 110 tons per annum

2,6 Ditertbutyl Phenol – 2300 tpa

2,4 Ditertbutyl Phenol – 1200 tpa

Methyl acrylate – 1100 tpa

Stearyl Alcohol – 600 tpa

Pentaerythritol - 260 tpa

Phosphorous Trichloride – 280 tpa

Investment Data:

Investment – In the order of 250 Million Saudi Riyals (only for phase 1)

ROI – About 21%

Threat:

Stiff competition from Chinese imports could be a threat for the project. Superior
quality of product has to be ensured to meet and win over the competition.
Proposal – Manufacture of Polyurethane Foams and Resins:

Rationale behind Project Selection:

Domestic market is growing very strong for polyurethane foams and resins.
Export into nearby GCC regions is another attraction that lends economic
justification for investment in the plant. Following plants employ polyurethane:

- Flexible Sponge Industry

- Hard Sponge Industry
- Paints Industry
- Furniture Industry (Artificial wood)
- Artificial Leather Industry (some types of leather)
- Some types of rubber industries
- Packing of systems and equipment
- Adhesive materials

Project Technical Data:

The proposed project could manufacture the following:

- Polyurethane Flexible Foam – 30,000 tpa

- Polyurethane Rigid Foam – 6000 tpa
- Polyurethane Oil Resins – 3,000 tpa
- Polyurethane Linear Powder – 2,000 tpa
- Polyurethane Rubber Resins – 1500 tpa
- Polyurethane Adhesive Resins – 3000 tpa
- Polyurethane Painting Resins – 1500 tpa

Raw Materials:

- Eythylene Glycol – 6100 tpa (local)

- Diisocyanates Toluene -4,400 tpa (local)
- Polyether Polyol – 1,600 tpa (local)
- Polyol – 1100 tpa (local)
- Small quantities of Carbon Black, Calcium Carbonate, Glycerol,
Polysilicon (local)
- Diphenyl Methane Diisocyanate – 1000 tpa (import)
- Hexamethylene Diisocyanate – 560 tpa (import)
- Small quantities of pentaerythritol, antioxidants, chlromethane,
chloroethane, trichloromethane, additives (import)
Investment Data:

Capital Investment – SR 150 Million

Markets – KSA (60%), GCC (20%), World Markets (20%)

ROI – 19%

Backward Integration:

The project offers opportunities for backward integration to the following urethane
chemicals. These chemical projects are expected to yield a ROI in the range of
19 to 22%:

a. Polyether Polyol
b. Methylene Diisocyanate
c. Toluene Diisocyanate