PRODUCTION OF PURIFIED TEREPHTHALIC ACID (PTA)

SESSION:
2K20-2K24

PROJECT MEMBERS:

MALIK MUHAMMAD FIAZ 2K20-Ch.E-134

MUHAMMAD MUZAMMIL 2K20-Ch.E-139
GHAZAL FATIMA 2K20-Ch.E-209
MUHAMMAD ABUBAKAR 2K20-Ch.E-137

DEPARTMENT OF CHEMICAL ENGINEERING

NFC INSTITUTE OF ENGINEERING AND TECHOLOGY, MULTAN

1
 To express our thanks to all those who contributed in our ways to the success of this
study and made it an unforgettable experience for us.

To our ALLAH Almighty who is always there for us. Thank you for guiding us and
giving us strength in our daily life. Thank you for always looking for us and being there
for us. Thank you for making all of these happened and ended it with a good outcome.

DEDICATED to our beloved parents, who have been our source of inspiration and gave
us strength when thought of giving up, who continually provide their mortal, spiritual,
emotional, and financial support.

To our teachers who never failed to teach and guide us.

To our friends, brothers, and classmates who shares their words of advice and
encouragement to finish this study.

And lastly to my group mates. Thank you for guidance, strength, and team work.

DEDICATION
 CERTIFICATION OF APPROVAL

This is to certify that the research work presented in this thesis entitled “Production Of Puri-
fied Terephthalic Acid” was conduct by Mr. Malik Muhammad Fiaz, Mr. Muhammad Muza-
mmil, Ms. Ghazal Fatima, and Mr. Muhammad Abubakar under the supervision of Engr.
Muzaffar Riaz, and approved by all the members of thesis committee.
No part of this thesis has been submitted anywhere else for other degree. This thesis is sub-
mitted to Chemical Department, NFC Institute Of Engineering And Technology in partial ful-
fillment of the requirements for the degree of bachelor of engineering in the field of Chemical
Engineering, and accepted by the Head of the Department Dr. Sadiq Hussain of NFC Institute
Of Engineering & Technology.
Student Name: Malik Muhammad Fiaz Signature: ___________________
Student Name: Muhammad Muzammil Signature: ___________________
Student Name: Ghazal Fatima Signature: ___________________
Student Name: Muhammad Abubakar Signature: ___________________

1) External Examiner: _______________________ Signature: ___________________

(Designation and office address)
_______________________________________

2) Internal Examiner: _______________________ Signature: ___________________

(Designation and office address)
_______________________________________

3) Supervisor: _____________________________ Signature: ___________________

(Designation and office address)
_______________________________________

4) Co-Supervisor: __________________________ Signature: ___________________

(Designation and office address)
_______________________________________

5) Coordinator: ____________________________ Signature: ___________________

(Designation and office address)
_______________________________________

6) HOD: __________________________________ Signature: ___________________

(Designation and office address)
_______________________________________

Date: ___________________________

3
 AUTHOR’S DECLARATION

I Malik Muhammad Fiaz, Muhammad Muzammil, Ghazal Fatima, Muhammad Abubakar

hereby states that my thesis titles Production Of Soda Ash is my own work and has not been
submitted previously by me for taking any degree from NFC Institute of Engineering & Tech-
nology or any other degree awarding institute and to the best of my knowledge has not been
submitted by any other scholar for the same purpose anywhere else in the country/world.
At any time if my statement is found to be incorrect even after my graduation, NFC Institute
of Engineering & Technology has the right to withdraw my BSc. Degree.

Name of Student: Malik Muhammad Fiaz

Name of Student: Muhammad Muzammil
Name of Student: Ghazal Fatima
Name of Student: Muhammad Abubakar

Date: ___________________________

4
 PLAGIARISM UNDERTAKING BY THE SCHOLAR

I solemnly declare that research work presented in the thesis titled “Production Of Purified
Terephthalic Acid” is my research work with no significant contributions from any other per-
son. Small contribution/help whenever taken has been duly acknowledged.
I understand the zero tolerance policy of the Higher Education Commission and NFC Insti-
tute of Engineering & Technology towards plagiarism. Therefore as an author of the above ti-
tled thesis declare that no portion of my thesis has been plagiarized and any material used as
reference is properly referred/cited.
I undertake that if I am found guilty of any formal plagiarism in the above titled thesis even
after award of Bachelor degree, the university reserves the rights to withdraw/revoke my
Bachelor degree and that HEC and NFCIET has the right to publish my name on the HEC/
NFCIET website on which name of students are placed who submitted plagiarized thesis.

Student Name: Malik Muhammad Fiaz Signature: ___________________________

Student Name: Muhammad Muzammil Signature: ___________________________

Student Name: Ghazal Fatima Signature: ___________________________

Student Name: Muhammad Abubakar Signature: ___________________________

5
 ACKNOWLEDGMENT

We express humble gratitude and praise the one and only Almighty ALLAH, the creator of
universe, who is beneficent and most merciful, guided us in difficult circumstances, who en-
dowed us with the will to undertake this design project, and bestowed upon us the wisdom
and means to complete it.

Great respect to our Holy Prophet Hazrat Muhammad (S.A.W.S) who taught and inspired us
to learn from our Mother’s lap till the darkest halls of our grave.

We are highly thankful to our honorable project supervisor Engr. Laraib Abid, who provided
us with his guidance and a chance to work on such an interesting topic. Her constructive sug-
gestions, constant guidance and friendly attitude encouraged us to work in a better manner.

Furthermore, we are very thankful to our parents, teachers, and friends, whose special atten-
tion in their prayers helped us achieve success throughout our lives.

Finally, our library deserves a special mention whose wealth of book and journals on Chemi-
cal Engineering made our task easier.

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Table of Contents
1| Introduction1
1.1.| Historical Background2

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8
 CHAPTER NO.1 INTRODUCTION

In 1846, French chemist Amedee Cailliot manufactured Terephthalic Acid (from Turpentine).

After World War II, importance of terephthalic acid was rapidly increased in industrial level.
The oxidation reaction between p-xylene with dilute nitric acid produced terephthalic acid.
Resistance of air oxidation occurs, by air oxidation reaction between p- xylene which further
gives p-toluic acid. The conversion of toluic acid to methyl p-toluate [(C6H4) (CO2H)2] and
further oxidation then converted to monomethyl terephthalate, and further esterified con-
verted to dimethyl terephthalate. The bromide -promoted oxidation of p-toluic acid to tereph-
thalic acid was announced by Mid-Century Corporation and ICI In 1955. This innovation al-
lows the conversion of p-xylene without the need to isolate intermediates to terephthalic.[1]

Commercially production of terephthalic acid occurs, by oxidizing para-xylene with oxy-

gen which consists of acetic acid and dissolved catalyst in a liquid phase. The water and
acetic acid drawn from the reaction as a vapor stream causes the control lance of the tem-
perature and concentration of water produced as a byproduct in liquid phase. The returning
of reaction take place by removing of water enriched in acetic acid from at least part of
stream. The product of terephthalic acid which gives the crystals slurry in term of liquid
phase consists of acetic acid and impurities. In terms of centrifugation or filtration process,
TPA may distilled in liquid phase. At higher temperature acetic acid dissolved in water and
removed from liquid stream. Organic impurities removed from water in the presence of hy-
drogen which gives the pure product. The production of terephthalic acid in reaction
medium containing oxidizing para-xylene with acetic acid which gives slurry on a move-
able band of filter material. In first zone, wet deposit produced from reaction medium of
slurry. The product of first wet deposit zone send to the second wet deposit, the removal of
second deposit send to third zone, in terms of second zone removal of aqueous medium
and slurry of TPA. Further purification of TPA preferred in purification plant.[2]

In the reaction control temperature and water content for the removal of acetic acid in reac-
tion medium by step evaporation. At last part of distillation water will be removed from the
mixture and acetic acid leaving with lower water content. The acetic acid recovered from
water by oxidation step.[2]

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Historical Background:

The resin saponified by the potassium carbonate was precipitated by means of a warm so-
lution of ammonia; Cailliot named it abietic acid. This acid resin was slightly bitter; it red-
dened litmus, was soluble in all proportions in alcohol, ether, and petroleum ether, and
neutralized by alkalis. Heated to 55℃ agglomer-
ated into transparent globules, every similar to
rosin. It combined with bases losing about 5% of
its weight as water. Cailliot reported the prepara-
tion and properties of a series of abietates (potas-
sium, sodium, ammonium, barium, strontium,
calcium, magnesium, quinine, and morphine).
The abietates of sodium, potassium, and ammo-
nia, were non-crystallizable, the latter was easily
decomposed by heat. Quinine abietate was pre-
pared by adding a neutral solution of ammonium Figure2.1 Louis Armand Victor Amedee Cailliot
(1805-1884) [3]
abietate to another of neutral quinine sulfate. This
salt was white, flocculent, insoluble in water, very fusible, easily soluble in alcohol and
ether but not crystallizable from their solutions. Morphine abietate was prepared in the
same manner. It was a white flocculent solid, soluble in alcohol and ether. These solutions
were very bitter and non-crystallizable (Cailliot, 1830).[3]

According to Cailliot, the essence of the turpentines of Abies pectinata and Abies excelsa
had an agreeable aromatic odor and hot taste. They were non-crystallizable, even at 20℃
and did not combine with alkalis. The neutral insoluble resins were little different one from
another. They were white, pulverulent, without a distinct crystalline form, dry to the touch,
tasteless and not acting upon litmus. They were insoluble in cold alcohol of 40℃ in petro-
leum ether and in alkaline solutions. The neutral soluble resin (abietin) crystallized as nee-
dles having a rectangular base. The faces were inclined along the axis, forming more or
less an elongated pyramid. Abietin was odorless almost insipid, insoluble in water and very
soluble in ether, naphtha, and acetic acid. It was very soluble in alcohol of 34℃. Its alco-
holic solution has a slight bitter taste and did not act upon litmus and the violet syrup.
Upon melted it produced a white transparent liquid, which on cooling became white,
opaque and crystalline solid (Cailliot, 1830).[3]

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The volatile oils (essence) of Abies pectinata (Strasbourg) and Abies excelsa had the fol-
lowing composition by weight percent in following table:[3]

Table 1: Composition of the essences of Abies pectinata and excelsa

Origin Turpentine from Abies Turpentine from Abies

pectinata excelsa

Volatile oil 33.50% 32.00%

Acid resin 46.3g 45.37

Abietin 10.85 11.47

Sub-resin (insoluble in al- 6.20 7.42

cohol)

Extractive matter and suc- 0.85 1.22

cinic acid

Loss attributed mainly to 2.21 2.52

the volatile oil

Figure2.1 Turpentine Oil [4]

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Cailliot wrote that the sample of the turpentine of Abies excelsa that he had examined was
shady, slightly colored, had a bitter taste and was less fluid than the one from Strasbourg. It
was very probably mixed with Abies pectinata. He also gave a detailed description of the
turpentine of Abies pectinata, Abies excelsa, Abies balsamea, Larix europea, and Pinus
maritima and sylvestris. According to Cailliot, scientists were undecided regarding the
question if vegetable resins were formed as such in vegetables or were the result of an oxi-
dation process of the essential oils (Cailliot, 1846, 1847). Cailliot subjected the essence of
turpentine to three different oxidation processes:[3]

1. The slow action of air.

2. The action of air under the influence of bases.

3. The more rapid action of nitric acid.

According to Cailliot, the reaction of nitric acid with the essence of turpentine was vigor-
ous and followed a complex route, but treating a small amount of turpentine with a layer
excess of acid diluted in water resulted in a calm reaction, easy to follow in a distillation
apparatus. The products of the reaction were numerous, abundant sparkling nitrous vapors,
together with CO2, a substantial quantity of HCN, and a certain amount of almost unal-
tered oil of turpentine. The latter had not changed its properties, particularly its rotation
power. Conrad Bromeis (1820-1862) and S. M. Rabourdin had examined the mother liquor
remaining in the distillation retort; (Berzelius, 1843; Rabourdin, 1844). Bromeis found it
contained a new acid, which he named turpentinic acid, and Rabourdin, oxalic acid and in
several cases quadroxalate of ammonia (Cailliot, 1846, 1847). Cailliot stopped the con-
trolled reaction after no more nitrous vapors were formed and found that the residue con-
tained two products, a mother liquor and a resinous substance. The mother liquor was
found to contain oxalic acid, HCN, which under the operating conditions seemed to occupy
the place of ammonium oxalate, and three new acids. One of these acids had the formula
C16H6 O8 = C16H4 O8 + 2HO, that is, it was an isomer of the phthalic acid discovered by
Auguste Laurent (1807-1853) and (Laurent, 1836), in the reaction between naphthalene
and nitric acid. For this reason, Cailliot suggested naming it “Terephthalic acid”.[3]

Terephthalic acid was sufficiently distinct from phthalic acid, it was white, tasteless, and
insoluble in water, alcohol and ether. When heated a portion sublimed without losing its
hydrate water, while another portion decomposed into CO2 and benzene, C12H6. The acid

12
was entirely converted into benzene and CO2 when heated with calcium hydroxide. Nearly
all the salts of terephthalic acid crystallized and burned readily, diffusing the odor of ben-
zene (Cailliot, 1846a, 1847).[3]

M. Caillot, about fifteen vears ago, obtained a peculiar acid among the products of the ac-
tion of dilute nitric acid on oil of turpentine, to which he gave the name of Terephthalic
acid, on account of its generation from oil of turpentine and its isomerism with phthalic
acid. M. Caillot's account of his new acid was so brief and incomplete, although recog-
nized many points of resemblance between it and the acid obtained from Burmese naphtha,
we were compelled to repeat his experiments on oil of turpentine before we could fix with
certainty the identity of the two products. In the course of these experiments, in which that
identity was fully established, noticed some interesting features in the compounds of the
acid and the derivatives discovered. More especially the relation of terephthalic acid to the
well-known aromatic series,a relation precisely analogous to that which suscinic acid bears
to the fatty acids. The close relation which exists between terephthalic acid and benzoic
acid is most strikingly manifested in the great number of derivatives which are obtained
from the former; indeed, nearly all of the most characteristic benzoyl-compounds have
their analogues amongst the derivatives of tere-phthalic acid. Terephthalic acid being a
bibasic acid, maintains its character throughout its various transformations, and it is this
fact which claims particular interest.

Terephthalic acid, as well as its derivatives, forms the first term of a new series of well-
characterized bodies, and may, as such, be considered the prototype of a great number of
compounds still unknown.

Without dwelling at present on the tedious process by which terephthalic acid is produced,
we may mention that it is obtainable from various sources. For instance, found that it is in-
variably formed, in a relatively small proportion, when toluylic acid is prepared from cy-
mol. It is also formed when cymol is treated with fuming nitric acid for the purpose of pre-
paring nitrotoluylic acid. The cymol be prepared from oil of cumin or from camphor, the
result is the same.

Subsequently, found that insolinic acid, which was descrit some years ago by Hofmann as
a new acid of the formula C8H6O4 is in reality terephthalic acid. The formation of this
acid from oil of cumin or cuminic aldehyde by the action of chromic acid on these sub-
stances, turned out to be the readiest method of preparing terephthalic acid and the princi-

13
pal part experiments were made with terephthalic acid which had been obtained from oil of
cumin by this process. Terephthalic acid being isomeric with phthalic acid, has the formula
C8H6O4 (Carbon= 12, Oxygen=16),

When pure, it forms a white opake powder but if thrown down from a boiling dilute alka-
line solution, it may be obtained in a crystalline state. When collected on a filter, these
crystals dry in paper-like masses of a silky lustre. Terephthalic acid is not perceptibly solu-
ble in ether, chloroform, acetic acid, water, or the other usual solvents. Concentrated sul-
phuric acid dissolves it to a considerable extent, especially when warm, without the forma-
tion of sulpho-terephthalic acid, and the acid separates unchanged on the addition of water.
On heating, terephthalic acid sublimes without previously fusing. The sublimate, which is
indistinctly crystalline, has the same composition and properties as the original acid, and
therefore, unlike other bibasic acids, terephthalic acid cannot be converted into an anhy-
drite by merely heating it.

Oxidation is a very used synthetic path to a large range of chemicals. Published reports of
oxidation studies of alkyl aromatics with molecular oxygen are from as early as 1912 when
Ciamician and Silber researched the light impact on the oxidation of toluene, o-xylene, m-
xylene, p-xylene, and p-cymene. These hydrocarbons were lit by sunlight for a year in con-
tact with oxygen, obtaining the corresponding carboxylic acids as the major products.
Isophthalic and terephthalic acids were created besides m-toulic acids and p-toluic acids
from m-xylene and p-xylene, respectively.

Stephens (1926) carried out the oxidation of several aromatic hydrocarbons with oxygen
at temperatures around 100 °C in the existence of dimmed light. Hydrocarbons such as
xylenes and ethylbenzene were permitted to be in touch with oxygen for periods from 24
up to 60 days receiving for xylenes mono-aldehydes as the major oxidation product and
only a fraction of the corresponding monocarboxylic acids.

Stephens also accounted for a mechanism in which hydrocarbon goes through stepwise ox-
idation with aldehydes and ketones as mediators, leaving out alcohols and also the inhibit-
ing impact of water in oxidation. Proof for the appearance of hydro-peroxides as mediators
was found only in cyclohexene oxidation.

Hartman and Seibert came out first in peroxide isolation in tetralin oxidation in 1932. Oxi-
dation of hydrocarbon generated by light is not useful for industrial purposes due to the

14
long induction times usually concerned. The activity of catalysts is therefore essential. The
collective activity of molecular oxygen and metal catalysts is more eligible for industrial
use since the oxidation reaction occurs much quicker.

King-et-al studied the liquid phase oxidation of ethyl-benzene to acetophenone and ac-
etaldehyde to acetic acid with air in temperature range of 102℃-104℃ for time of 24h,
catalyzed by metals. The catalysts utilized were acetates of cobalt, nickel, manganese, ,
vanadium, cerium, iron, and chromium. In the catalyzed oxidation of ethylbenzene results
of acetophenone were higher than those Stephens" received for the un-catalyzed oxidation.
The basis of catalytic oxidation-reduction action is electron transfer from the reductant to
the catalyst, obeyed by electron transfer from the catalyst to the oxidant, which is quicker
than immediate electron transfer from the reductant to the oxidant, but not sufficient, the
necessity for such catalysis is that the metal must contain two distinct oxidation states,
none of them excessively stable when compared to the other. Oxidation and reduction of
saturated molecules continually result in the generation of free radicals. Transition metals,
such as Cu, Co, and Mn, have the ability to catalyze these oxidations.

BY YOSHIRO OGATA, MASARU TSUCHIDA AND ARIHIKO MURAMOTO re-

ceived MAY 20, 1957 performed the experiment for the preparation of terephthalic acid
from Phthalic or Benzoic Acid A mixture of 210 g. (1.25 moles) of hydronopol, 169 g.
(1.35 moles) of dimethylaniline and 200 mi. of dry ethyl ether was warmed until the ether
was at reflux temperature, the heating source was removed and 129 g. (1.43 moles) of
acrylyl chloride was added at a rate sufficient to maintain a venue caux. When the amine
hydrochloride began to crystallize, it was necessary to cease adding the acid chloride and
cool the flask for a short period. When the reaction slowed down, the remaining acid chlo-
ride was added, and then cooled. About 20ml. of water was added to dissolve the amine
hydrochloride and the ether layer was separated. It was then washed successively with
three 50-ml. portions as noted in the of cold 10% sulfuric acid solution, then with saturated
sodium bicarbonate solution and sufficiently with water. A few crystals of hydroquinone
were added, the ether was evaporated and crude product was distilled. Then allowed to
stand for 24 hours over a small portion of metallic sodium in oder to remove the hydro-
quinone completely and again distilled under the reduced pressure. The yield was 74g.of
product boiling at 73℃ under 0.05mm pressure. This material polymerized readily with
small portion of benzoyl peroxide.

15
The largest source of purified terephthalic acid is provided by the company name, “Lotte
Chemical Plant Ltd.” Terephthalic is used as a raw material in polyester industry. In Sep-
tember 2009, Lotte “South Korea Conglomerate” attained the major shareholdings in Pak-
istan PTA limited (PPTA). Eventually, the company name switches to “lotte chemical plant
LTD. In Pakistan petrochemical industry, Lotte chemical plant is the biggest source of in-
vestment of about US $490 million. In Karachi, the plant at port Qasim was built using
ICI’ S state art of technology licensed in 1998. It provides the purified teraphthalic acid
(PTA) as a raw material to many industries i.e., textile and pet panicking industries. The
company has also created a large network at Qasim port vicinity. It includes the chemical
jetty, raw water pipeline and manufacturing of industrial glasses purified terephthalic acid
(PTA) is a key raw material in the production of polyester, particularly in the manufactur-
ing of polyethylene terephthalate (PET) resin for bottles, fibers, and other applications. The
production of PTA involves several historical and technological developments.

Terephthalic acid itself is a white crystalline solid that was first synthesized in the 19th
century. The industrial production of PTA, however, gained prominence in the mid-20th
century as the demand for polyester products increased. The traditional method for produc-
ing PTA involves the oxidation of p-xylene, a derivative of crude oil. This process typi-
cally involves several steps, including catalytic oxidation, crystallization, and purification.

The development of more efficient catalysts and process optimization has played a signifi-
cant role in improving the overall yield and reducing the environmental impact of PTA
production. Over the years, researchers and engineers have focused on refining the produc-
tion processes to enhance efficiency, reduce energy consumption, and minimize environ-
mental impact. Advances in catalyst technology, reactor design, and process integration
have contributed to the evolution of PTA production. As global demand for polyester con-
tinues to grow, the production of PTA remains a critical aspect of the textile and packaging
industries.

16
Figure 2.2 The development of first plant in Canada

Ongoing research and innovation in sustainable practices are also shaping the future of
PTA production, with an emphasis on eco-friendly processes and raw materials. Purified
terephthalic acid (PTA) is a key raw material in the production of polyester, particularly in
the manufacturing of polyethylene terephthalate (PET) resin for bottles, fibers, and other
applications. The production of PTA involves several historical and technological develop-
ments. Terephthalic acid itself is a white crystalline solid that was first synthesized in the
19th century. The industrial production of PTA, however, gained prominence in the mid-
20th century as the demand for polyester products increased.

The traditional method for producing PTA involves the oxidation of p-xylene, a derivative
of crude oil. This process typically involves several steps, including catalytic oxidation,
crystallization, and purification. The development of more efficient catalysts and process
optimization has played a significant role in improving the overall yield and reducing the
environmental impact of PTA production.

Over the years, researchers and engineers have focused on refining the production pro-
cesses to enhance efficiency, reduce energy consumption, and minimize environmental im-
pact. Advances in catalyst technology, reactor design, and process integration have con-
tributed to the evolution of PTA production.

17
As global demand for polyester continues to grow, the production of PTA remains a criti-
cal aspect of the textile and packaging industries. Ongoing research and innovation in sus-
tainable practices are also shaping the future of PTA production, with an emphasis on
ecofriendly processes and raw materials.

The plant for the production of terephthalic acid was Established in 2000, is a mutual ven-
ture between Society general and the Spanish oil company, CEPSA. Located in the soul of
the industrial zone in east-end Montreal, the plant has been working since September 2003.

Figure 2.3

The first plant of its kind in Canada, had to find itself fast in North America. Its gathering
exports to the United States also put it daily ground with other major producers in the in-
dustry. In enormous part, the company’s quick, efficient growth was made feasible through
strategic management, which allowed it to meet the rising market.

The intention of the city’s east end as the location for CEPSA was a strategic one. Being in
close proximity to other petrochemical facilities helped build synergy and allow for practi-
cal partnerships between the various plants that make up the polyester production line. The
chain of production rests on the dynamic, creative links developed by the group of petro-
chemical and chemical plants founded in eastern Montreal to promote local manufacturing
using raw materials available in Quebec.

18
The production line consists of the following components:

 Petroleum – Xylene – Para-Xylene – PTA – PET.

It is an industry in which it is the prevailing player and one where the need from industrial
consumers nowadays over extends household production ability. Yet Lotte Chemical Pak-
istan wants to stay for the purified terephthalic acid (PTA) industry to develop before it in-
vests in capability growth, according to its management.

During an analyst briefing declaring openly the details of the company’s economic results
for the third quarter of calendar year 2019, Lotte Pakistan’s management said that they
could only illustrate investments in capacity growth if they could expand capacity to
800,000 tons, up from the existing 500,000 tons that their factory established in Port Qasim
can produce.

Purified terephthalic acid (PTA) is an important raw material utilized in the production of
polyester fiber and polyethylene terephthalate (PET) plastic bottles. Lotte Chemical Pak-
istan Ltd considers itself a world-class supplier of PTA. A trendsetter in industrial acquisi-
tion in Pakistan, Lotte’s PTA plant was constructed in 1996 to 19997 and started produc-
tion in June 1998.

The company began its presence as an assistant of ICI Pakistan in 1995, before being spun
off as a self-reliant entity in 2000 named Pakistan PTA. In 2008, Akzo Nobel, the Dutch
chemical giant purchased ICI worldwide and briefly evolved the parent company of Pak-
istan PTA. In September 2009, the company was paid for by the South Korean conglomer-
ate Lotte, and obeying the name of the company was transformed to its current name.

Last year in 2018, the company managed to create at more than 100% of capacity, turning
out 516,000 tons of PTA, despite their declared ultimate capability of 506,000 tons. One
would assume after smashing this mark, the company would yearn to go ahead, and in fact,
evaluate expanding its capability and taking over some of the percentage that imports hold
on the PTA market.

Pakistan’s existing PTA market share is around 800,000 metric tons whereas Lotte Chemi-
cal’s has a capacity of 500,000 tons and the remainder of the market is existing met by im-
ports composed research analysts at BIPL Securities, a securities brokerage firm, in an
analysis letter published to clients on November 22.

19
As per the administration, future PTA growth relies mostly on market growth and develop-
ment of polyester staple fiber (PSF) and filament yarn market that are nowadays operating
at 79% utilization level, wrote the BIPL analysts. Presently, the company does not have
any agendas for growth, however, should the necessity for PTA crosses 1 million tons,
Lotte would expand by 800,000 (at an estimated cost of $400 million which would carry
the in rated ability to 1.3 million tons per annum.

However, while the company is not yet ready to leap into an expansion, there does appear
to be room for optimism for the PTA industry, which has seen demand increase over the
past three years, particularly from textile manufacturers.

Demand for PTA increased notably during 2015-2018 owing to improved power supply to
textile customers of Lotte (75% of the total customer base). This was also reflected through
improved an polymer operating rate (capacity utilization of textile customers) from 69% in
2015 to 89% in 2018. However, the operating rate is expected to reduce to 79% during the
current year.

The reason Lotte is referring to the deceleration in need in 2019 is the enactment of the
new computerized nationwide identity card (CNIC) condition for purchasing products
above the marketing value of 50,000, which has impeded the capacity of casual dealers and
unregistered manufacturers to purchase their product.

According to Lotte, the justification they will be shutting down the year at under 500,000
tons of production in 2019 is that the new CNIC necessity has implied a decline in the mar-
ket of PTA, especially in Punjab, which was easily their biggest demand.

Nonetheless, the company management of Lotte Pakistan is confident that the company

20
would regain 100% capacity come next year in 2020. However, this is still not indicative
of the expansion that the government would like to reduce the imports that are making up
for the remaining demand at the moment.

But with the CNIC regulations set a take full effect in February 2020, along with the com-
pany setting aside Rs5.0 billion for GIDC provisioning, and the company’s Port Qasim
plant set to be closed for maintenance for 15-20 days in March, the road ahead maybe not
necessarily bumpy but is also not facilitative to the expansion that the government would
desperately love to spruce up their number

Meanwhile, the company does predict margins to enhance relatively over the attaining cal-
endar year.

 “The management expects PTA margins to enhance from existing $90 per ton to
$110-140 per ton during 2020”.

Physical And Chemical Properties Of Raw Materials:

 Para-xylene
 Acetic Acid
Paraxylene:
Basically, purified Terephthalic acid is formed by a reaction between para-xylene (PX) and
acetic acid. Polymerization process is used to create PET (polyethylene terephthalate) by
utilizing PTA p-xylene (para xylene) is an aromatic hydrocarbon. It is one of the isomers of
dimethyl-benzene called as xylenes. The p- used for (para), demonstrate that two methyl
groups in p-xylene occupy the diametrically opposite substituent positions 1 and 4. It is in
the position of the two methyl groups, o-xylene and m-xylene. All have the same chemi-
cal formula C6H4(CH3)2. Their isomers are colorless and highly flammable. Polyethylene
terephthalate also combine with other chemicals to form polyester.

Para-xylene, often abbreviated as PX, is an aromatic hydrocarbon compound. It's one of the
three isomers of xylene, the other two being ortho-xylene and meta-xylene. These isomers
differ in the arrangement of carbon atoms around the benzene ring.

Para-xylene is primarily used in the production of purified terephthalic acid (PTA) and
dimethyl terephthalate (DMT), both of which are key intermediates in the manufacturing of
polyester. Polyester is widely used in the production of fibers, films, and resins for various

21
applications, including clothing, packaging, and bottles.

Table 1.1. Chemical and Physical Properties of Para-xylene

Parameters Results

Chemical Formula C8H10

Appearance Colorless Liquid

Odor Aromatic

Density 0.866 g/mL

Melting Point 13.2 ℃ (55.8 F; 286.3 K)

Boiling Point 138.35 ℃ (281.03 F; 411.50 K)

Solubility in Water Insoluble

Solubility in Ethanol Very Soluble

Solubility in Diethyl Ether Very Soluble

Vapor Pressure 9 mmHg (20 ℃)

Magnetic Susceptibility -78.76 × 10-6 cm3/mol

Refractive Index 1.49582

0.73885 cP at 0 ℃
Viscosity
0.6475 cP at 20 ℃

Dipole Moment 0.00 D

Acetic Acid:
Acetic acid (CH3COOH) is a corrosive organic acid having a sharp odor, burning taste, and
pernicious blistering properties. It is found in ocean water, oilfield brines, rain, and at trace
concentrations in many plant and animal liquids. It is central to all biological energy path-
ways. Fermentation of fruit and vegetable juices yields 2-12% acetic acid solutions, usu-
ally called vinegar. Any sugar-containing sap or juice can be transformed by bacterial or
fungal processes to dilute acetic acid.

Theophrastus (272-287 BC) studied the utilization of acetic acid to make white lead and
verdigris. Acetic acid was also well-known to alchemists of the renaissance. Andreas Libav-

22
ius (AD 1540-1600) distinguished the properties of vinegar from those of ice like (glacial)
acetic acid obtained by dry distillation of copper acetate or similar heavy metal acetates. Nu-
merous attempts to prepare glacial acetic acid by distillation of vinegar proved to be in vain.

Lavoisier, believed he could distinguish acetic acid from acetous acid, the hypothetical
acid of vinegar, which he thought was converted into acetic acid by oxidation. Following
Lavoisier’s demise, adept proved the essential identity of acetic acid and acetous acid, the
latter being the monohydrate, and in 1847, Kolbe finally prepared acetic acid from the ele-
ments.

Most of the acetic acid is produced in the United States Germany, Great Britain, Japan,
France, Canada, and Mexico. Total annual production in these countries is close to four mil-
lion tons. Uses include the manufacture of vinyl acetate and acetic anhydride. Vinyl acetate is
used to make latex emulsion resins for paints, adhesives, paper coatings, and textile finishing
agents. Acetic anhydride is used in making cellulose acetate fibers, cigarette filter tow, and
cellulosic plastics.

PHYSICAL PROPERTIES:
Acetic acid, has freezing point of 16.635 ℃ and has boiling point of 117.87 ℃ at
101.3 kPa, is a clear, colorless liquid. Water is the chief impurity in acetic acid although
other materials such as acetaldehyde, acetic anhydride, formic acid, bi-acetyl, methyl ac-
etate, ethyl acetoacetate, iron, and mercury are also sometimes found. Water significantly
lowers the freezing point of glacial acetic acid as do acetic anhydride and methyl acetate.
The presence of acetaldehyde or formic acid is commonly revealed by permanganate tests,
bi-acetyl and iron are indicated by color. Ethyl acetoacetate may cause slight color in
acetic acid and is often mistaken for formic acid because it reduces mercuric chloride to
calomel. Traces of mercury provoke catastrophic corrosion of aluminum metal, often em-
ployed in shipping the acid.
The vapor density of acetic acid suggests a molecular weight much higher than the for-
mula weight, (60.06). Indeed, the acid normally exists as a dimer, both in the vapor phase
and in solution. This vapor density anomaly has important consequences in engineering
computations, particularly in distillations.

Acetic acid containing less than 1% water is called glacial. It is hygroscopic and freezing
point is a convenient way to determine purity. Water is nearly always present in far

23
greater quantities than any other impurity.

Table 1.2 shows the freezing points for acetic acid - water mixtures.

Table 1.2. Acetic Acid – Water Freezing Points

Acid Acid, wt% Freezing Point, ℃

100 16.635

99.95 16.50

99.70 16.06

99.60 15.84

99.2 15.12

98.8 14.49

98.4 13.86

98.0 13.25

97.6 12.66

97.2 12.09

96.8 11.48

96.4 10.83

96.0 10.17

Antoine equation for acetic acid has recently been revised.

 ln(P) = 15.19234 + (-3654.622)/T + (-45.392)

The pressure is measured in kPa and the temperature in K.

The vapor pressure of pure acetic acid is tabulated in Table 1.3.

Table 1.3. Acetic Acid Vapor Pressure

Temperature, ℃ Pressure, kPa

24
 0 4.7

10 8.5

20 15.7

30 26.5

40 45.3

50 74.9

60 117.7

70 182.8

80 269.4

110 776.7

118.2 1013

130 1386.5

140 1841.1

150 2461.1

160 3160

170 4041

180 5091

190 6333

Density of acetic acid at various temperatures is given in Table

Table 1.4. Density Of Acetic Acid (Liquid)

Temperature℃ Density kg/m3

25
 20 1049.55

25 1043.92

30 1038.25

47 1019.19

67 996.46

87 973.42

107 949.90

127 925.60

147 900.27

167 873.56

187 845.40

197 829.88

207 817.07

217 797.44

Acetic acid forms a monohydrate containing about 23% water, thus the density of acetic acid-
water mixture goes through a maximum between 77-88 wt % acid at 15%℃. When the water
is mixed with acetic acid at 15-18℃, heat is given off. At greater acetic acid concentrations,
heat is taken up. The measured heat of mixing is consistent with dimer formation in pure
acid. The monohydrate, sometimes called acetous acid, was formerly the main article of com-
merce. Data on solidification points of aqueous acetic acid mixtures have been tabulated and
the eutectic formation has been sought for some time. The eutectic can be decomposed
through adding a substance to form a compound with acetic acid.
For example, Urea or Potassium acetate. Glacial acetic acid can then be distilled. The densi-
ties of acetic acid-water mixtures at 15℃ are given in table 1.5.

Density of Aqueous Acetic Acid given in Table

26
 Table 1.5. Density Of Acetic Acid

Acetic Acid, wt% Density,g/cm3

1 1.007

5 1.0067

10 1.10142

15 1.0214

20 1.0284

30 1.0412

40 1.0523

50 1.0615

60 1.0685

70 1.0733

80 1.0748

90 1.0713

95 1.0660

100 1.0550

A summary of physical properties of glacial acetic acid is given in Table 1.6.

27
 Table 1.6. Properties of Glacial Acetic Acid

Property Value

Freezing point, ℃ 16.635

Boiling point, ℃ 117.87

Density, g/mL at 20°C 1.0495

Refractive index 1.36965

Heat of vaporization, J/g 394.5

Specific heat, (vapor), J/(g:K)° 5.029

at 124℃

Critical temperature, K 529.71

Critical pressure, MPa 4.53

Enthalpy of formation for liq- -484.50

uid, kJ/mol at 25°C

For Gas -432.25

Normal enthalpy, J/(mol K) for 159.8

liquid at 25℃

For Gas 282.5

Liquid viscosity, mPa at 20℃ 11.83

Liquid viscosity, mPa at 40 ℃ 8.18

Surface tension, mN/m (=dyn/ 27.75

cm) at 20.1"C

Flammability limits, vol% in air 4.0 to 16

Auto-Ignition temperature, ℃ 465

28
CHEMICAL PROPERTIES:
 Decomposition Reactions:
Minute traces of acetic anhydride are formed when very dry acetic acid is distilled.
Without a catalyst, equilibrium is reached after about 7h of boiling, but a trace of acid
catalyst produces equilibrium in 20 minutes. At equilibrium, about 4.2 mole of anhy-
dride is present per liter of acetic acid, even at temperature as low as 80℃ . Thermol -
ysis of acetic acid occurs at 442℃ and 101.325kPa (1 atm), leading by parallel path-
ways to methane and carbon dioxide and to ketene and water. Both reactions have
great industrial significance.

Single pulse, shock tube decomposition of acetic acid in argon involves the same pair
of homogeneous, molecular First-Oder reactions as thermolysis. Platinum on graphite
catalyzes the decomposition at 500-800K at low pressures. Ketene, methane, carbon
dioxide and a variety of minor products are obtained. Photochemical decomposition
yields methane and carbon dioxide and a number of free radicals which have compli-
cated pathways. Electron impact and gamma rays appear to generate these products.
Electron cyclotron resonance plasma made from acetic acid deposits a diamond film
on suitable surfaces. The film having a polycrystalline structure, is a useful electrical
insulator and widespread industrial exploitation of diamond film appears to be on the
horizon.

Acid-Base Chemistry: Acetic acid dissociates in water, pKa 4.76 at 25℃. It is a mild
acid which can be used for analysis of bases too weak to detect in water. It readily
neutralizes the ordinary hydroxides of alkali metals and the alkaline earths to form the
corresponding acetates. When the crude material pyro-ligneous acid is neutralized
with limestone or magnesia the commercial acetate of lime or acetate of magnesia is
obtained. Acetic acid accepts protons only from the strongest acids such as nitric acid
and sulfuric acid. Other acids exhibit very powerful, super acid properties in acetic
acid solutions and are thus useful catalyst for esterification of olefins and alcohols.
Nitration’s conducted in acetic acid solvent are affected because of the formation of
the nitronium ion, NO2+. Hexamethylenetetramine may be nitrated in acetic acid sol-
vent to yield the explosive cyclo-trimethylene-trinitramine, also known as cyclonit or
RDX.

 Acetylation Reactions:
Alcohols may be acetylated without catalysts by using a large excess of acetic acid.
The reaction rate is increased by using an entraining agent such as hexane, benzene or
cyclohexane, depending on the reactant alcohol to remove the water formed. The con-
centration of water in the reaction medium can be measured, either by means of Karl-
Fischer reagent, or automatically by specific conductance and used as control of rate.

The specific electrical conductance of acetic acid containing small amounts of water
is given in Table 1.7.

29
 Table 1.7. Specific Conductance Of Aquatic Acetic Acid

Acetic Acid, wt% Specific Conductance, S/cm×10*7

100 0.060

99.9515 0.065

99.746 0.103

99.320 0.261

98.84 0.531

97.66 2.19

96.68 5.45

94.82 20.1

92.50 59.9

90.75 111

82.30 688

Nearly all commercial acetylation’s are realized using acetic catalysts. Catalytic acetylation
of alcohols can be carried out using mineral acids.
For example, Per-chloric acid, phosphoric acid, sulfuric acid, benzene-sulfonic acid or meth-
ane-sulfonic acid, as the catalyst. Certain acid reacting ion exchange resins may also be used
but these tend to decompose in acetic acid. Mordenite, a decationized Y-zeolite, is a useful
acetylation catalyst and aluminum chloride, Al2Cl6, catalyzes n-butanol acetylation.
Olefins and anhydrous acetic acid to give esters, usually, a precursor of vinyl acetate, has
long being known, but the condensation of formaldehyde and acetic acid vapors to furnish
acrylic acid and thus are not likely to be further developed. Vapor phase methanol –methyl
acetate oxidation using simultaneously condensation to yield methyl acrylate is still being de-
veloped. A vanadium-titania phosphate catalyst is employed in that process.
Commercial production of acetic acid has been revolutionized in the decade 1978-1988. Bu-
tane- naphtha liquid phase catalytic oxidation has declined precipitously as methanol or
methyl acetate carbonylation has become the technology of choice in the world of market.
By-product acetic acid recovery in another hydrocarbon oxidation.
For example, in xylene oxidation to terephthalic acid and propylene conversion to acrylic
acid, has also grown. Production from synthesis gas is increasing and development of alterna-
tive raw materials in under serious consideration following widespread dislocations in the
cost of raw material.

30
Ethanol fermentation is still used in vinegar production. Research on fermentative routes to
glacial acetic acid is also being pursued. Thermophilic, anaerobic microbial fermentations of
carbohydrates can be realized at high rates, if practical schemes can be developed for remov-
ing acetic acid as fast as it is formed. Under usual conditions, about 5% acid brings the
anaerobic reaction to a halt, but continuous separation produces high yields at high CO2 is
another possible route to acetic acid.
Currently, almost all acetic acid produced commercially comes from acetaldehyde oxidation,
methanol or methyl acetate carbonylation or light hydrocarbon liquid –phase oxidation. Com-
paratively, small amounts are generated by butane liquid phase oxidation, direct ethanol oxi-
dation and synthesis gas. Large amounts of acetic acid are recycled industrially in the produc-
tion of cellulose acetate, polyvinyl alcohol and aspirin and in board array of other proprietary
processes.
 Acetaldehyde Oxidation:
Ethanol is easily dehydrogenated oxidatively to acetaldehyde using silver, brass, or
bronze catalysts. Acetaldehyde can then be oxidized in the liquid phase in the pres-
ence of cobalt or manganese salts to yield acetic acid. Pe-racetic acid formation is pre-
vented by transition metal catalysts. Most transition metal salts decomposes any per-
oxides that form but manganese is uniquely effective.
CATALYST
There are three catalysts used to increase the rate of a chemical reaction.
1 Cobalt Acetate
2 Magnesium
3 Bromide
The current invention suggests a catalyst preparation procedure by comparing the
preparation method of terephatlic which has the measure that catalyst solution is utilized
in the oxidation reaction the influence of terephatlic acid and oxygen-rich gas. The
catalyst for formulating the terephthalic acid can enhance the crossivness of classic
catalysts to PTA product requirement.
APPLICATION OF CATALYST
By examining the preparation of CMB (cobalt-manganese-bromide) and CMA
(cobalt-manganese-acetate) liquid catalysts as petroleum liquid catalysts by using Co
and Mn from used Li-ion battery cathode material. To formulate the liquid cata-
lysts, the entire preparation procedure for liquid catalysts comprised of physical activi-
ties such as grinding and sieving, and chemical processes leaching, solvent extrac-
tion and stripping. In the physical activity procedure, 99% of Al was extracted
from the material with a size of less than 0.42 mm. In the chemical procedure,
the leaching solution was obtained under these constraints, 2 mol/L sulfuric acid 10
vol % H2O2, 0.1 solid/liquid proportion, 60 ◦C.
In the solvent extraction procedure, the optimum concentration of (2,4,4-
trimthylpentyl) phosphinic acid (Cyanex 272), the stability of pH, the extent of

31
saponification, the organic phase or aqueous phase proportion isotherm, and the
stripping investigation for the extraction of Co and Mn were analyzed. As an
outcome, Co and Mn were regained by 0.85 M-Cyanex 272 with 50% saponifica-
tion in the counter-curret two extraction phases. Eventually, a CMB and CMA
liquid catalyst containing 33.1 g/L Co, 29.8 g/L Mn, and 168 g/L Br and 12.67 g/L
Co, 12.0 g/L Mn, and 511 g/L C2H3O2 were produced by 2 M hydrogen bromide
and 50 vol % acetic acid. The concentration can be equalized with cobalt and manganese
salts.
The need for lithium-ion batterie s (LIBs) has been rising constantly. The initial benefit of
batteries as energy sources for portable electronic devices expanded to their application as
power sources in hybrid electric vehicles (HEVs) and electric vehicles (EVs). The quantity of
cobalt utilized in Li-ion batteries boosted to 42 wt % Recycling of Li-ion batteries is signifi-
cant from financial and environmental perspectives. Many studies have been done on the re-
cruitment of Co from Li. Yet, the inquiries illustrated the convalescence of Co and Li from
LiCo2 cathode material.
Now a days, the recuperation of the Co range slowly decreases and is superseded by
the recuperation of Ni and Mn due to the distinctions in metal costs, voltage capabili-
ties, and safety of the procedure at elevated temperatures. Thus, useful metals, such as
Co, Mn, and Ni require to be regained an economically endurable procedure. The cleansing
of cobalt and manganese is barely accomplished by the technique because cobalt and
manganese have comparable chemical changes. Yet some methods, such as leaching by
ammonia–ammonium carbonate and solvent extraction have been reported for the partition of
cobalt and manganese extract units are utilized for the sanctification of Co and Mn.
Founded on the reported investigations, multiple investigators are interested in the re-
spective separation of Co and Mn for applications in a domain that is distinct from the las t
outcome. If an application for Co and Mn is established, the problem of detaching Co and
Mn for the recycling of Li-ion batteries will be figured out; such a procedure is econom-
ically achievable by the elimination of the phases during processing. One of the possible
applications of cobalt and manganese mixtures is in a cobalt-manganese bromide (CMB) or
cobalt-manganese-acetate (CMA) liquid catalyst.
CMB and CMA catalysts represent a major use of cobalt and manganese. These two metals
are used in mixed cobalt acetate/manganese bromide homogeneous catalysts for the ex-
position of terephthalic acid (TPA) and di-methyl-terephthalate (DMT). TPA and DMT
are utilized to make polyethylene terephthalate from p-xylene. The catalytic reaction returns
with cobalt acetate or bromide, with manganese present during the TPA process. South
Korea is a significant TPA supplier and yielded 2.281 thousand tons of TPA in
2014. South Korea, Taiwan, Thailand, and Mexico constitute about 94% of the interna-
tional TPA ion product capacity.

Local Survey:
Lotte Chemical Pakistan Limited is the largest manufacturer and supplier of PTA (Purified
Terephthalic Acid) in Pakistan. It is a KSE 100 listed company and belongs to the KSE

32
Chemicals industry. It was established in 1996 under the supervision of ISO. In 1998, the
PTA device was put into production. In 2000, PTA was separated from ICI and became Pak-
istan PTA Limited (PPTA).
Then came from KP Chemicals subsidiary of "Lotte Corporation." (a multi-ethnic Korean
group) and founded "Lotte Pakistan PTA Ltd." (LPPTA). Later, KP Chemical was renamed
Lotte Chemical, therefore, in 2003, LPPTA was renamed Lotte Chemical Pakistan Limited. It
all started at PSX in 1998. Lotte Chemical Pakistan Limited is a part of Pakistan Chemical
Industry. It is a member of PCMA (Pakistan Chemical Manufacturing Association) along
with 73 other companies.
Lotte Chemicals Pakistan is one of the best suppliers of Purified Terephthalic Acid. PTA is its
main source in Pakistan and around the world. PTA is a raw material used in many textile and
animal packaging industries. It is used to produce polyester fiber, staple fiber, polyester yarn
and PET resin. Factory approved technology is provided by Invista Performance Technology
(IPT). Exporting to Asia and the Middle East, the company's products comply with all inter-
national standards.
The company maintains its competitive advantage with efficient and qualified customers by
providing PTA to all major buyers in a short time. Received the country's 2014 Best Business
and Sustainability Award
Chemicals:
It is an important part of the manufacturing industry, including pharmaceuticals, automobiles,
textiles, furniture, electronics, construction and household appliances. Recent advances in
technology, especially synthetic materials, have increased the demand for medicine. Pak-
istan's chemical industry is underdeveloped and unable to meet current and future business
needs. Chemical products constitute 17% of Pakistan's total imports. Pakistan has a well-de-
veloped import and export system for pharmaceuticals that can be converted into many prod-
ucts (70,000 other products). However, Pakistan imports more medicines than it exports. The
underdevelopment of the chemical industry is evident from the quantity and value of its prod-
ucts. This can be seen from the statement in the PCMA report:
"According to the Pakistan Economic Survey 2018-2019, pharmaceutical and pharmaceutical
export bills, excluding fertilizers and petrochemicals, are around PKR 727 billion, while our
export value is only PKR 111 billion in the same categories”
Pakistan's chemical industry is broadly divided into organized and unorganized. According to
PMCA, in 2019, the chemical industry is the fourth and third largest in the world economy.
Pakistan's chemical industry grew 10% in 2019. Investment in chemical sector is about 600
billion Rupees.
According to the Chemical Industry Vision (2030), the chemical industry is categorized into
two categories:
i. The preliminary chemical industry
 refineries
 petrochemicals, natural gas, etc
ii. The secondary chemical industry

33
  Consisting of feed-stocks
Economically chemical markets are divided into four main categories.
Basic chemicals Life sciences Fine chemicals Consumer prod-
uct
Polymers, petrochemi- Pharmaceuticals, health Electronic chemi- Soap, detergents
cals and other deriva- products and crop pro- cals, industrial and cosmetics.
tives and inorganic tection chemicals. gases, adhesives,
chemicals. sealants and cata-
lysts.
35-37% of the chemi- 30% of the chemical 20-25% of the 10% of the chem-
cal market. market. chemical market. ical market.

Forward and backward linking:

The creation of the PTA contains many recommendations for the pharmaceutical industry it-
self. Its main raw material is paraxylene, and approximately 40,000 tons of paraxylene comes
from India. This paraxylene itself is a product of crude oil. Therefore, Lotte Chemical's back-
links are related to various industries such as pharmaceutical industry, oil and gas industry.
PTA is used in the preparation of polyester polymers, which are products of various chemical
industries such as (Ibrahim Fibers, ICI Pakistan, Rupali Fibers, etc.).Polyester polymers are
then used in textile industry, plastic companies, and other different manufacturing companies
to produce garments and plastic products.
ICI Pakistan:
ICI Pakistan belongs to the chemical industry. It is listed on the Pakistan Stock Exchange
(PSX) and is one of the companies in the KSE100 index. ICI Pakistan Limited's products in-
clude soda ash, polyester, chemicals, pharmaceuticals and animal feed. Founded in 1944, it is
an international trader of its products in many countries such as India, Pakistan, Afghanistan
and Turkey. ICI Pakistan Limited is a subsidiary of Lucky Holdings Limited. It is a competi-
tor of Lotte Chemical Ltd. Because both companies are in the pharmaceutical industry. Both
companies have connections with the textile industry as they are exporters to the textile in-
dustry.
ENGRO Polymers and Chemicals (EPCL):
Engro Polymers and Chemicals operates in the chemical industry of Pakistan. It is listed on
the Pakistan Stock Exchange (PSX) and is one of the companies included in the KSE 100 in-
dex. Its products include PVC, caustic soda, sodium hypochlorite, hydrochloric acid, EDC/
VCM. It is a subsidiary of Engro Company. EPCL is a competitor of Lotte Chemical Ltd. Be-
cause they are both in the pharmaceutical industry. Both companies are plastic products or
chips suppliers.
Nimir Resins Ltd:
It is an indirect competitor of Lotte Chemical Pakistan Ltd. The main product line is unsatu-
rated polyester resin, which is also used in furniture and bathroom. Although one of its main

34
portfolios is the PTA of Lotte Chemical Pakistan, its commitment to price and quality has se-
cured its position as one of the competitors of Lotte Chemical Pakistan.
PAKOXY-LIMITED:
Pakoxy belongs to the pharmaceutical industry of Pakistan. Pakoxy is listed on the Pakistan
Stock Exchange (PSX). Pakoxy products contain plenty of gas, liquid oxygen, liquid nitro-
gen, liquid argon, hydrogen, liquid carbon dioxide. Both companies operate in the chemical
industry and are in direct competition.
In Pakistan, pakoxy has been leading and growing the gas industry for over 70 years, provid-
ing global solutions from a local perspective each customized to specific needs of consumers.

Cost factors affecting the product and operations of LOTTE Chemicals Pakistan:
Cost factors are defined as elements or measures that are directly proportional to one inde-
pendent variable for a particular company for e.g. raw materials, exchange rates etc. LOTTE
chemicals Pakistan produces PTA (purified terephthalic acid). PTA production requires a vast
combination of highly complex machinery and quite expensive raw materials. The core raw
material for its production is Paraxylene, that is also quite rare making it expensive as well
which result in low profit margins. The same issue is faced because of exchange rate Pakistan
suffers from depreciating exchange rates which leads to higher cost of Imports which in turn
narrows the profit margin for LOTTE chemicals Pakistan. (LOTTE chemical Pakistan, 2020)
LOTTE plant is situated near port Qasim which faces the main issue power supply and plant
maintenance as the company uses cutting edge technology it requires high maintenance and
power supply disturbance causes turbulence in production processes and so the plant becomes
inefficient which harms the company’s earnings.
One major cost factor is government policies towards buying and trade between countries.
1. Government issued orders that for purchases over PRs 50 000 the buyer needs to
show the CNIC for the transaction to occur. This measure slowed down demand
of PTA as there were many informal traders and unregistered manufacturers.
2. LOTTE imports a huge proportion of para-xylene from India. Due to the recent
political issues government passed orders to end raw material import from India
so a major decrease in raw material for LOTTE pushes it to buy from other for-
eign buyers which also makes raw material import more costly.
Several cost factors affect an industry and for a tenure of five years (2014-19) LOTTE has
been subjected to such factors which has negatively affected earnings.
Factors which effect the demand for the products manufactured by LOTTE Chemical
Pakistan Ltd. (LCPL):
1. There is a 7% customs duty on the import of the polyester fibre and if you include all
the importing expenses it reaches around 20%(this includes the antidumping duty as
well).Such tariffs imposed by the government help the demand the for the locally pro-
duced polyester fibre as the prices the for international produced material goes up and
gives the local producer (LCPL) a greater profit margin and cost range to work with.

35
 2. Interest rates: When the interest rates decrease it increases the demand for LCPL
products. When interest rates drop companies tend to borrow more and thus will have
more money to spend on LCPL products. Similarly, LCPL themselves will have more
money to spend as well as they will be earning more through more sales as well as
borrowing more due to the low interest rates. As a result, they will produce more. So
generally, when the interest rates are low trade increases.
3. Economic environment: Usually when people are earning more the demand for prod-
ucts increases and vice versa. So, when events like the coronavirus pandemic happen
people spend less. This will affect LCPL products. For example, people will buy less
clothes and polyester is used in making clothes so the companies making clothes will
buy less polyester.
4. Government Regulations: Since LOTTE is a chemical factory environmental agency
under government often keep in check LOTTE. If the waste disposition is under law
the company often received subsidies which further raise demand because of being
more conservative behavior.
Terephthalic acid and its salts
Terephthalic acid and its salts are the most important organic compounds in the petrochemical
industry. In 2020, the world purified terephthalic acid (PTA) market volume will decrease
from 81.45 million tons to approximately 79.1 million tons. The global trade volume of this
organic compound is expected to increase to 93.37 million tons by 2025. The global market
uses around 65% of all PTA to make polyester staple fiber (PSF), indicating that its maximum
use is in textile products.

Figure: Global production of purified terephatlic acid

PTA, audio and video tapes, data storage tapes, photographic films, labels, etc. It is used as
raw material to produce polyester film used for Polyethylene terephthalate (PET) is the main
derivative of PTA and ethylene glycol. Meanwhile, the remaining 27% of terephthalic acid is
processed into PET, which is used to produce bottle resins.
Pakistan also exports $52 million worth of purified terephthalic acid (PTA), which, along
with ethylene, is an important raw material for PSF production and ethylene-glycol. Pakistan
imports PTA from Thailand at a rate of more than US$1 per unit. PTA from Thailand to India
costs only half of US$0.48. Pakistan currently imports PTA from Malaysia at US$4.53 per

36
kilogram. This is approximately nine times the price of India's imports from other countries.
Pakistan also exports PTA to Turkey at a unit price of US$ 0.24 per kilogram.
Table: Trade analysis of terephatlic acid and its salt of Pakistan
HS Code Reporter Trade Trade Quantity Per Unit Partner
Flow Value ($) (kg)
291736 Pakistan Import 49,317,26 45,491,670 1.08 Thailand
1
291736 Pakistan Import 1,358,532 300,000 4.53 Malaysia
291736 Pakistan Export 338,039 1,408,241 0.24 Turkey

Pakistan applies 16% tariff and 4% additional tariff on PTA imports. It turned out that the
main reason for imposing tariffs was to protect PTA manufacturers. However, with the addi-
tion of the fifth period, tariffs were reduced to only 5%. Meanwhile, all import duties, sales
taxes, withholding taxes, and federal taxes will be refunded to PSF exporters under the DTRE
and EFS 2021 programs. Due to weak domestic demand, Pakistan currently exports PTA to
other countries in Asia, the Middle East and the Gulf countries.
Table Trade analysis of terephatlic acid and its salts of India
HS Re- Trade Trade Quantity Per Part-
Code porters Flow Value ($) (kg) Unit ner
($)
291736 India Im- 53,217,568 111,096,440 0.48 Thai-
port land
291736 India Im- 45,068,605 75,652,000 0.60 Korea
port
291736 India Im- 42,652,166 81,538,980 0.52 Bel-
port gium
291736 India Ex- 18,281,213 41,809,000 0.44 Turkey
port
291736 India Ex- 14,948,027 33,713,000 0.44 Oman
port
291736 India Ex- 13,981,025 27,682,005 0.51 Africa
port

The PTA market continues to grow due to the expansion of the PET market and dimethyl
terephthalate (DMT) market. Total domestic PTA capacity is 500,000 tons. Pakistan's produc-
tion in 2020 was only 416,092 tons, down 11% from 2019.
PTA is a commodity and shipping costs are more expensive than paraxylene. Therefore, cre-
ating PTA only benefits customer relations. A number of manufacturers have been established
in Pakistan such as Lotte Chemical Pakistan Limited, one of the leading suppliers of PTA.
The company has focused on meeting PTA's domestic needs since its establishment. How-
ever, if domestic demand slows down, Pakistan will export to other countries. Lotte Chemical
Pakistan said the quality of domestic PTA meets international standards and is well known by

37
major customers in Asia and the Middle East. PTA is more effective and stable than paraxy-
lene. Hence, it is preferable to go for forward integration, despite the logistic disadvantages.
The case of imports of purified terephthalic acids is similar to that of ethylene glycol, as Pak-
istan imports it at more than double the price. Pakistan imports terephthalic acid from Thai-
land at a unit cost of $1.08 per kilogram. While India imports from Thailand at $0.48 per
kilogram, the table exhibits per unit cost of terephthalic acid exports as low as $0.20, $0.24,
and $0.29 in Russia, Pakistan, and Saudi Arabia, respectively.
Table: Lowest-price exporting countries of terephthalic acid & its salts
Period Exporters HS Code Quantity Export Per Unit
(kg) Value ($) ($)
2020 Russian 291736 5,287,252 1,052,373 0.20
2020 Pakistan 291736 1,408,241 338,039 0.24
2020 Saudi Arabia 291736 3,462,000 1,003,964 0.29
2020 Japan 291736 31,212,200 12,789,353 0.41
2020 Taipi, China 291736 1,056,084,408 480,008,057 $ 0.45
2020 USA 291736 54,121,516 24,928,556 0.46
2020 Indonesia 291736 165,656,825 76,913,605 0.46
2020 China 291736 847,488,152 395,794,630 0.47
2020 Thailand 291736 896,174,866 418,810,529 0.477
2020 India 291736 136,659,511 64,121,652 0.47
2020 Korea 291736 1,948,423,814 924,930,842 0.47
2020 Malaysia 291736 97,018,484 47,278,403 0.49

Export prices to various countries range from US$0.41 per kilogram in Japan to US$0.49 per
kilogram in Malaysia. Pakistan's imports are made inThai-
land at $1.08 per kilo and from Malaysia at $4.53 per kilo.

World-wide survey
In 2022, the market volume of purified terephthalic acid (PTA) worldwide amounted to
nearly 84.17 million metric tons. It is forecast that the market volume of this organic com-
pound will grow to around 107.66 million metric tons worldwide in the year 2020.
In 2023, the main producers of purified terephthalic acid (PTA) are Yisheng Petrochemicals a
nd Reliance Industries Ltd. In March 2023, the Indian Petroleum Commission gave "phase on
e" approval for the construction of the Paradip petrochemical complex in Paradip, Odisha. Th
e petrochemical complex will include a world-class crusher as well as downstream processes
for the production of petrochemical products such as linear low-density polyethylene (LLDP
E), polypropylene, high-density polyethylene (HDPE) waiting. The refinery also involves ble
nding complexes of paraxylene (PX) and purified terephthalic acid (PTA). IOCL has invested
US$ 1.656 billion (INR 13,805 crore) to build the complex, which will produce 1.2 million of
tons PX per year and will be used to produce PTA.

Table: Market volume of purified terephthalic acid worldwide from 2015 to 2022, with
a forecast for 2023 to 2030

38
 Characteristics Market Volume in million metric tons
2030* 107.66
2029* 105.96
2028* 102.61
2027* 99.58
2026* 96.84
2025* 93.43
2024* 90.17
2023 86.92
2022 84.17
2021 81.56
2020 79.08
2019 81.45
2018 80.12
2017 78.8
2016 77.51
2015 76.17

Figure: Market volume of purified terephthalic acid worldwide from 2015 to 2022,
with a forecast for 2023 to 2030

Pacific region has the largest PTA consumption potential. However, there have been price in-
creases since mid-February 2023 due to various factors such as half of production and weak
supply and social demand and upward trend in market. The closure of Yizheng factory for a

39
week at the end of February 2023 affected the food industry causing the product to rise in the
Asia Pacific Region.
Another factory, Hengli Petrochemical, is closed for maintenances from March 2023 of April
2023. Purified terephathalic acid (PTA) prices in Asia remain good for April 2023 as demand
from the PET market deadlines. However, as mid of 2023 the market deadline due to low
para-xylene food prices in Asia market. The negative condition of PTA continue until end of
2023 due to impact of excess supply in region. In addition, low fuel consumption caused the
PTA production in the region to decrease further.
The international Purified terephthalic acid (PTA) market has developed to achieve around 72
million tons in 2022 and is predicted to prosper at a healthy CAGR of 4.09% during the pre-
diction time until 2032. Growing market for Purified Terephthalic Acid (PTA), as a raw mate-
rial to manufacture PET (Polyethylene Terephthalate), which is vastly operated in the food &
beverage sector is predicted to propel the market during the forecast period.
Purified terephthalic acid (PTA) is a white solid organic molecule chemical formula
C6H4(CO₂H)2. The industrial practice of PTA starts with an aqueous solution of crude
terephthalic acid, hydrogenated to withdraw impurities before being crystallized to develop
a slurry of purified terephthalic acid in an aqueous solution. This process is obeyed
by an integrated separation washing procedure using a centrifuge with washing capa-
bilities. PTA is a versatile chemical employed to simulate a wide array of plasticizers and
polymers such as polyethylene terephthalate, polybutylene terephthalate (PBT), terephthaloyl
chloride, liquid crystal polymer, etc. Other applications of PTA are the production of
polyester coating resins for a combination of uses, including coil coats, electronics, vehicles,
and the industrial sector. PTA also finds application in the textile sector for the production of
polyester fibers.
Primary, the international PTA demand is operated by the Polyester Fibre and Yarn industry.
With the development in fibers and yarn with improving lifestyles across the world, the PTA
market is predicted to prosper in the forthcoming years. Moreover, PTA is utilized as a start-
ing material for polyester films because of its dimensional strength and sturdiness. An accu-
mulation in the usage of these films in photographic films and data storage tapes and sheets is
anticipated to propel the PTA demand. The industry demand for packing materials is rising
from sections like food and beverage, consumer products, and others, hyping up the need for
PET resins which will most probably increase the demand for PTA in the forecast period.
The global Purified terephthalic acid (PTA) market is anticipated to reach 120 million tons
by 2032. (PTA) demand. As of 2022, this region depleted approximately 60% of the interna-
tional. Established on region, APAC overlooks the Purified terephthalic Purified terephthalic
acid (PTA). Owing to the rapidly rising population in countries like India, China, and Japan,
there will be a rise in PET films, sheets, and molded containers packaging materials for food
& beverages which is anticipated to increase the r for Purified terephthalic acid (PTA) in this
region. Similarly, the rising request for fibers from the textile sector further propels the de-
mand for PTA in developing nations in APAC.
Founded on the end use, the international Purified terephthalic acid (PTA) market is segre-
gated into Polyester Fibre and Yarn, PET Resin, Polyester Film, and Others. As of 2022, the
Polyester Fibre industry is monopolizing the PTA need with a consumption of around 60%.

40
PTA is one of the vastly significant chemicals for the exposition of polyester fibers, which are
consistent with other natural fibers, driving the majority of the PTA market.
Polyester fibers are both powerful and lightweight and resistant to wrinkles and water. Fab-
rics attained utilizing polyester fibers are employed for bringing in outerwear clothes such as
jackets, raincoats, etc. Similarly, the PET Resin industry also keeps significant demand
shares. PET possesses extraordinary markers comprising reasonable mechanical strength, ex-
cellent gas barrier, and increased transparency due to which it is extensively used in packag-
ing purposes, bottles, containers, shopping bags, and microwave containers.
Significant players in the production of Global Purified terephthalic acid (PTA) are Reliance
Industries Limited, Indorama Ventures, BP Chemicals, Indian Oil Corporation Limited, MCPI
Private Limited, Oman International Petrochemical Industries Company's (OMPET), SABIC
Ibn Rushd Arabia Industrial Fiber Company, Shahid Tondgooyan Petrochemical Company,
Yisheng Petrochemical, Hengli Petrochemical, Hanwha General Chemicals, Lotte Chemical,
Fuhaichuang Petrochemicals, BP Zhuhai Chemical and others.

Basis of selection capacity

The PTA market begins again to prosper due to the development of the PET demand and
dimethyl terephthalate (DMT) demand. The total domestic PTA capability is 500,000 tons.
Pakistan's production in 2020 was only 416,092 tons, down 11% from 2019.

PTA is a commodity and shipping costs are additionally expensive than para-xylene. There-
fore, creating a PTA only advantages customer associations. A digit of manufacturers have
been founded in Pakistan such as Lotte Chemical Pakistan Limited, one of the leading suppli-
ers of PTA. The company has focused on meeting PTA's domestic demands since its estab-
lishment.
However, if the domestic market slows down, Pakistan will ship to other countries. Lotte
Chemical Pakistan said the marker of domestic PTA meets global standards and is well
known by primary customers in Asia and the Middle East. PTA is more effective and stable
than para-xylene. Hence, it is preferable to go for forward integration, despite the logistic
drawbacks.
The case of essences of purified terephthalic acids is similar to that of ethylene glycol, as
Pakistan imports it at more than double the price. Pakistan imports terephthalic acid from
Thailand at a unit cost of $1.08 per kilogram. While India imports from Thailand at $0.48 per
kilogram, the table shows per unit cost of terephthalic acid exports as low as $0.20, $0.24,
and $0.29 in Russia, Pakistan, and Saudi Arabia, respectively.

South Korean producer Lotte Chemical is exiting the purified terephthalic acid (PTA) busi-
ness by selling its 75.01% stake in LCPL (LOTTE CHEMICAL Pakistan Ltd), Koreanpost
reported. This sale is part of the company's medium-term strategy to strengthen its high

41
value-added specialty materials business. LCPL, which produces 500,000 tonnes of PTA a
year at Port Qasim in Karachi, will be sold to Pakistani chemical company Lucky Core Indus-
tries (LCI) for Korean Won (W) 192.4 billion ($156 million) – more than 13 times Lotte's ac-
quisition cost Chemical in 2009. LCI's buyer is formerly known as ICI Pakistan, which man-
ufactures polyester - a derivative of PTA.

In Lahore, it produces 122,000 tons/year of polyester polymer and 135,000 tons/year of

polyester fibers; and 225,000 tons/year of soda ash at Khevra, according to the ICIS supply
and demand database. In South Korea, in July 2020 the company ceased production of PTA at
its 600,000 t/y Ulsan plant and converted it to a purified iso-phthalic acid (PIA) facility.

The current capacity of PIA's Ulsan plant is 520,000 tons/year. By 2030, the company is tar-
geting the high-value-added specialty and environmental materials business to account for
60% of its total projected sales of US$50 trillion ($41 billion).

Lotte Chemical plans to become carbon neutral in the same year with plans to invest W4.4tr
over 10 years in hydrogen production, in line with its goal of meeting 30% of South Korea's
clean fuel demand. As a reminder, Lotte Chemical has reduced PP production load in Yeosu
and Daesan (Yeosu and Daesan Gudang, South Korea) by 20% from the beginning of Sep-
tember 2022. The total production capacity of PP in Yeosu and Daesan is 1.23 million tons.
There are only two world-class plants for manufacturing and supplying terephthalic acid
(TPA)
1. LOTTE Chemical Plant Ltd is located in Lasbela
2. Pak Arab Refinery Limited (PARCO) located at Port Qasim, Karachi.
Both plants mutually produce Purified Terephthalic Acid (PTA) with a capability of 416092
tons of PTA every year. Terephthalic Acid (PTA) in Pakistan has the ability to provide 570
tons of PTA every day through its state-of-the-art plant at Port Qasim, Karachi by PARCO.
So on the basis of this, we selected the PTA production of 230 tones/day.

42