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HYDROCHLORIC ACID PRODUCTION FROM SALT-SULFURIC ACID PROCESS

A Feasibility Study
Presented to
Engr. Daphne C. Leal
Department of Chemical Engineering
School of Engineering and Architecture
Saint Louis University

Chemical Engineering Plant Design- ChE 522

Submitted by:

ABALA, Lhemar D.
KOLLIN, Isabella Marie H.
MAGNO, Jerome T.
TIRU, Jonalyn M.

Submitted to:

ENGR. DAPHNE COSI LEAL

January 2017
EXECUTIVE SUMMARY

This feasibility study was initiated to complete and determine the technical,
environmental, financial, socio-economic, and marketing impact of hydrochloric acid by salt-
sulfuric acid process. This feasibility study aims to solve the following problem of not having a
chemical company that produces hydrochloric acid that can supply not only the demands locally
but globally as well. Being able to solve this problem would make the Philippines globally
competitive when it comes to hydrochloric acid production.
The company is named Hayyan Chemical Corporation for the production of
HCl(Hydrochloric acid) from sulphuric acid on common salt raw materials. The Hayyan
Chemical Corporation will be situated in Brgy. Sapang Palay San Jose del Monte City, Bulacan
where its source of sulphuric acid and common salt would be coming from Emerald Chemicals
Incorporated and Arvin International Marketing, Inc. The target markets are anticipated to be the
local producers of ethylene dichloride and chloroethene (vinyl chloride) as well as the industries
in the nearby countries.
Financially, the rough estimate of value earned is 25.87% equivalent and with a payback
period of 4.68 years hence establishing its profitability and viability of investment. Through the
state-of-the-art technology employed, the company can produce almost 65,000 metric tons of
HCl annually at its full capacity. The process ensures an environmentally sound methodology for
it invests for its flue gas cleaning facility and waste treatment disposal to ensure cleaner and safe
production.
Economically, this research will increase the production of high purity hydrochloric acid
through large-scale plant operation, thereby contributing to government revenues through taxes
and labor. This study will benefit the country, as it will help address the increasing demand for
hydrochloric acid whose price is increasing uncontrollably.

i
MANUFACTURER OF HYDROCHLORIC ACID

ii
TABLE OF CONTENTS

EXECUTIVE SUMMARY .......................................................................................................................... i

TITLE PAGE ............................................................................................................................................. ii

CHAPTER 1: INTRODUCTION ......................................................................................................... 1


1.1 Background of the Study .................................................................................................................... 2

1.2 Statement of the Problem .................................................................................................................... 6

1.3 Hypothesis............................................................................................................................. .............. 6

CHAPTER 2: REVIEW OF RELATED LITERATURE ................................................................. 8

2.1 Product .............................................................................................................................................. 8

2.1.1 Hydrochloric Acid ……….............................................................................................................. 8

2.2 Raw Material ..................................................................................................................................... 9

2.2.1 Sulfuric Acid ……....................................................................................................................... 9

2.2.1 Sodium Chloride ......................................................................................................................... 9

2.3 Raw and Auxiliary Material............................................................................................................... 10

CHAPTER 3: MARKET study ……................................................................................................ 11


3.1 Historical supply and Demand of products........................................................................................ 12

3.2 Projected Supply and Demand of products........................................................................................ 13

3.3 Determination of Production Output.................................................................................................. 14

CHAPTER 4: technical analysis............................................................................................ 21


4.1 Process……………………………................................................................................................................. 22

4.2 Materials Selection…………................................................................................................................. 27

4.3 Utilities……………………………………………………………………………………………………………………………………..… 32

4.4 Material Balance…………………………………………………………………………………… 35

CHAPTER 5: FINANCIAL ASPECT……........................................................................................... 36


5.1 Financial Assumptions ...................................................................................................................... 37

5.2 Sources of Financing ....................................................................................................................... 38

CHAPTER 6: SITE SELECTION…………........................................................................................... 48

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6.1 Plant Size and Production Schedule................................................................................................. 49

6.2 Plant Location ................................................................................................................................... 49

CHAPTER 7: PLANT LAYOUT………........................................................................................... 55


7.1 Plant Layout Description.................................................................................................................... 55

7.2 Effect of Layout on Material Flow, Handling and Storage……….................................................... 55

7.3 Provision for Expansion ………………………………………….................................................... 57

7.4 Utilities .............................................................................................................................................. 58

CHAPTER 8: ENVIRONMENTAL IMPACT ASSESSMENT AND SAFETY.......................... 60


8.1 Environmental Impact Assessment……............................................................................................ 61

8.2 Safety…………………………….……............................................................................................ 61

CHAPTER 9: RECOMMENDATIONS AND CONCLUSIONS………………........................... 65

LIST OF REFERENCES…………………………………………………………………………. 67
APPENDICES……………………………………………………………………………………. 68
Appendix A: HISTORICAL AND PROJECTED DATA FOR SUPPLY AND DEMAND OF
HCL …………………………………………………………………………………….................... 69

Appendix B: MATERIALAND ENERGY BALANCE FOR PRODUCTION OF HCL ................. 78

Appendix C: FINANCIAL ANALYSIS COMPUTATIONS ……………………………............... 82

iv
LIST OF TABLES

Table 2.1 Annual Raw Material Requirement & Cost ....................................................................... 10

Table 3.1 Historical Supply of Hydrochloric Acid ............................................................................. 12

Table 3.2 Historical Demand of Hydrochloric Acid .......................................................................... 13

Table 3.3 Projected Supply of Hydrochloric acid……………………………………………………15

Table 3.4 Projected Demand of Hydrochloric Acid ........................................................................... 15

Table 4.1 Annual Utilities Requirement & Cost ................................................................................. 35

Table 5.1 Estimation of Total Capital Investment…………………………………………………39

Table 5.2 Equipment Cost Estimation and Accumulated Depreciation for Five Years……….40

Table 5.3 Insurance Cost for Building and Equipment and Local Tax Estimation ...................... 41

Table 5.4 Cost Estimation and Accumulated Depreciation or Service Facilities ......................... 42

Table 5.5 Cost Estimation for Fire Protection Equipment and Accumulated Depreciation........ 42

Table 5.6 Cost Estimation and Land Structural Facilities ............................................................... 43

Table 5.7a Labor Schedule for Five Years ........................................................................................ 44

Table 5.7b Labor Schedule for Five Years (continuation) .............................................................. 45

Table 5.8 Projected Balance for the First Five Years ....................................................................... 46

Table 5.9 Projected Balance of Salt Cake for the First Five Years ................................................ 47

Table 5.10 Projected Balance of HCl for the First Five Years........................................................ 47

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LIST OF FIGURES

Figure 2.1 Uses of Sulfuric Acid………………………………………………………………...9

Figure 3.1 Historical Supply of Hydrochloric Acid ........................................................................... 12

Figure 3.2 Historical Data of Supply and Demand of Products ........................................................ 13

Figure 3.3 Projected Supply of Hydrochloric Acid ............................................................................ 15

Figure 3.4 Projected Demand of Hydrochloric Acid .......................................................................... 16

Figure 4.1 Hydrochloric Acid Production Process ............................................................................. 22

Figure 4.2 Scrubbing tower .................................................................................................................... 32

Figure 4.3 Dryer heat balance ................................................................................................................ 33

Figure 6.1 Map of the Site...................................................................................................................... 52

Figure 6.2 Sapang Palay, San Jose del Monte, Bulacan .................................................................... 53

Figure 7.1 Complete Layout .................................................................................................................. 56

Figure 7.2 Perspective Drawing ............................................................................................................ 56

Figure 7.3 Perspective View .................................................................................................................. 57

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INTRODUCTION

1
CHAPTER 1

INTRODUCTION

1.1 Background of the Study

“Hydrogen chloride is a gas at room temperature. Solutions of hydrogen chloride in

water are known as hydrochloric acid. Hydrogen chloride is widely used in the chemical

industry as a reagent in the manufacture of other chemicals. Most of it is produced as a co-

product of reactions involving chlorine. The vast majority of hydrogen chloride/hydrochloric

acid is formed as a co-product. In the US, for example, hydrogen chloride/hydrochloric acid, as

a co-product, accounts for about 90% of the total output, much of this is in the production of

chloroethene via 1,2-dichloroethane, for the production of poly(chloroethene), PVC. This is then

used to produce more 1,2-dichloroethane and is thus unavailable for other processes. Some

plants in which hydrogen chloride/hydrochloric acid are generated have been built close to plants

which use the acid.” (The Esssential Chemical Industry, 2016)

“Hydrochloric acid (excluding solutions containing not more than 10% hydrogen

chloride) is designated as a deleterious substance under Japanese laws, and is a strongly

corrosive substance. Persons who handle hydrochloric acid should learn about the related laws

and regulations (such as the Poisonous and Deleterious Substances Control Law), its properties,

and precautions on handling, and should observe them to ensure safety.” (Japan Soda Industry

Association, 2006)

“Aqueous hydrochloric acid is used in a variety of miscellaneous applications.

Hydrochloric acid is also used in many other production processes for organic chemicals. It can

be used in the production of p-phenylenediamine, polycarbonate resins, bisphenol A, polyvinyl

2
chloride resins, and ethanol (from ethylene). The pharmaceutical industry consumes hydrochloric

acid as a catalyst in synthesis, for pH control, for deionization of water and as a reduction agent

(e.g., in the production of ascorbic acid and para-aminobenzoic acid).” (Occidental Chemical

Corporation, 2013)

“Numerous other uses of hydrochloric acid include the manufacture of dyes and

pigments; the removal of sludge and scale from industrial equipment; the deliming, tanning and

dyeing of hides by the leather industry; manufacture of permanent wave lotion; the carbonizing

of wool; use as a bleaching and dyeing assistant in the textile industry; and the purification of

sand and clay.” ( (Occidental Chemical Corporation, 2013)

“Food grade hydrochloric acid is used in the production of food ingredients and additives.

It is also used in the food industry, especially in the sugar and brewery industries. Product of this

quality meets the requirements of several different standards and testing organizations that set

guidelines for products to be used in the food industry. Most HCl produced and used in the

market today meets a Technical Grade Specification. Product of this specification is of very high

quality and can be used in most applications. Industrial grade product usually refers to any

product that is not Technical Grade. Typically this product will have one or two components

that fall outside of the normal Technical Grade Specification. These components are usually of

no consequence in many different applications. Industrial Grade product can be used in a wide

variety of end use applications.” (Reagent Chemical, 2007)

“Hydrochloric acid is produced in solutions up to 38 percent HCl (concentrated grade).

Higher concentrations up to just over 40 percent are chemically possible, but the evaporation rate

is then so high that storage and handling need extra precautions, such as pressure and low

3
temperature. Bulk industrial-grade is therefore 30 percent to 34 percent, optimized for effective

transport and limited product loss by HCl vapors. Solutions for household purposes, mostly

cleaning, are typically 10 percent to 12 percent, with strong recommendations to dilute before

use.” (18Ja9)

“Hydrochloric acid has many uses. It is used in the production of chlorides, fertilizers,

and dyes, in electroplating, and in the photographic, textile, and rubber industries. Hydrochloric

acid is corrosive to the eyes, skin, and mucous membranes. Acute inhalation exposure may

cause eye, nose, and respiratory tract irritation and inflammation and pulmonary edema in

humans. Acute oral exposure may cause corrosion of the mucous membranes, esophagus, and

stomach and dermal contact may produce severe burns, ulceration, and scarring in humans.

Chronic occupational exposure to hydrochloric acid has been reported to cause gastritis, chronic

bronchitis, dermatitis, and photosensitization in workers. Prolonged exposure to low

concentrations may also cause dental discoloration and erosion. EPA has not classified

hydrochloric acid for carcinogenicity.” (EPA, 2000)

“The global hydrochloric acid market is projected to witness substantial growth

throughout the forecast period, thanks to the increasing number of applications of hydrochloric

acid. In addition, the rising focus of key players on the expansion of the product portfolio in

order to enhance their market presence and create a niche across the globe is estimated to

supplement the growth of the global hydrochloric acid market in the coming years. With these

factors, the market is expected to register a healthy growth rate throughout the forecast period.”

(18Ja11)

4
“The research study on the global hydrochloric acid market offers a thorough overview,

presenting insights into the primary factors that are likely to impact the development of the

market in the near future. With the assistance of analytical tools, the latest trends, promising

opportunities, and challenges in the global hydrochloric acid market has been provided in the

study. In addition, the key segmentation, technological developments, and the competitive

scenario of the market have been discussed at length to offer a strong understanding.” (18Ja12)

“From a geographical perspective, the global hydrochloric acid market has been divided

into the Middle East and Africa, Asia Pacific, North America, Latin America, and Europe.

Among these segments, Asia Pacific is expected to lead the global hydrochloric acid market as it

is the largest consumer across the globe.” (18Ja13)

“Sodium sulfate is an important chemical raw material and is the main raw material for

production of sodium sulfide, sodium silicate and other chemical products. It can also be used as

filler of synthetic detergent. In the paper industry, it can be used as the cooking agent for the

manufacturing of paper pulp of sulfate.” (Chemical Book, 2017)

“Sodium sulfate, also known as anhydrous Glauber's salt or anhydrous mirabilite, appears

as white monoclinic crystal or fine powder with the relative density being 2.68 and the melting

point being 884 ℃. It can be dissolved in water with the aqueous solution being neutral. It is

soluble in glycerol and insoluble in ethanol. It is easy to absorb water when being exposed to

become hydrous sodium sulfate. It is a homogeneous polycrystalline material and is rhombus at a

temperature of 32.4~223 ℃ with generating shaped monoclinic crystal at higher temperatures

and generating hexagonal crystals in 241 ℃.” (18Ja15)

5
“There are two kinds of crystalline hydrate compound of sodium sulfate: one is

heptahydrate sodium Na2SO4·7H2O, being white sixty or tetragonal crystal with dehydrating at

24.4 ℃. Another is sodium sulfate decahydrate Na2SO4·10H2O with conventional name being

Glauber's salt, “YuanMingFen”, insurance powder.

1.2 Statement of the Problem

Because of the increasing population, there is also a substantial increase in the demand of

various products which result to the need to cope with this demand. In turn, industries require

more precursor products/chemicals to meet this need.

This feasibility study desires to be able to justify and solve the following questions:

a) What are the required processes involved in the production of HCl from salt-sulfuric

acid production process?

b) What amount of HCl is to be produced annually?

c) Is it really feasible to put up a hydrochloric acid plant in the Philippines?

d) How will the chemical be handled?

1.3 Hypothesis

a) The product made and produced from the plant can compete with the market.

b) The product made and produced of the Hayyan Chemical Corporation can be able to

cope up with the demand and at the same time will produce profit.There would be

minimum environmental hazard in the production of HCl.

6
REVIEW OF RELATED

LITERATURE

7
CHAPTER 2

REVIEW OF RELATED LITERATURE

2.1 Product

2.1.1 Hydrochloric acid

“Hydrochloric acid, also known as muriatic acid, is an aqueous solution of hydrogen

chloride gas. At room temperature, it is a colorless gas, which forms white fumes of hydrochloric

acid upon contact with atmospheric humidity. Hydrochloric acid is a strong inorganic acid

widely used chemical. The largest end uses for hydrochloric acid are steel pickling, oil well

acidizing, food manufacturing, producing calcium chloride, and ore processing.” (18Ja19)

“The pharmaceutical industry consumes hydrochloric acid as a catalyst in synthesis, for

pH control, for deionization of water and as a reduction agent (e.g., in the production of ascorbic

acid and Para- aminobenzoic acid).” (18Ja45)

Numerous other uses of hydrochloric acid include the manufacture of dyes and pigments;

the removal of sludge and scale from industrial equipment; the de-liming, tanning and dying of

hides by the leather industry; manufacture of permanent wave lotion; the carbonizing of wool;

use as a bleaching and dyeing assistant in the textile industry; and the purification of sand and

clay.

8
2.2 Raw Material

2.2.1 Sulfuric Acid

By far the largest amount of sulfuric acid is used to make phosphoric acid, used, in turn,

to make the phosphate fertilizers, calcium dihydrogen phosphate and the ammonium phosphates.

It is also used to make ammonium sulfate, which is a particularly important fertilizer in sulfur-

deficient.

Figure 2.1 Uses of Sulfuric Acid

2.2.2 Sodium Chloride

“Sodium chloride is essential to maintain the electrolyte balance of fluids in a person’s

body. If levels of electrolytes become too low or too high, a person can become dehydrated or

over hydrated, according to U.S. National Library of Medicine.” (18Ja21)

“Sodium chloride has been used to flavor and preserve foods for thousands of years. As a

preservative, salt helps to prevent spoilage and helps to keep foods like ready-to-eat meats and

cheeses safe to eat. Salt is also used in fermenting processes for foods like sauerkraut, pickles

and kefir.” (18Ja22)

9
“Sodium chloride also has many other uses beyond seasoning and preserving foods.

Hospitals use an intravenous sodium chloride solution to supply water and salt to patients to

alleviate dehydration. Icy sidewalks and roadways are often de-iced by rock salt, the same type

of salt that is used on your dinner table, before it is ground down to finer crystals. Large

quantities of sodium chloride are also used in industrial manufacturing settings to help make a

range of products, from plastic, paper, rubber and glass, to chlorine, polyester, household bleach,

soaps, detergents and dyes.” (18Ja21)

Raw and Auxiliary Material

Sulphuric acid and common salt are the two main raw materials that are needed in the

conceptualized plant. Sulphuric acid and common salt are easily available in the local market.

These supplies cost are estimated to be Php 72,676,035.52 every year. Table 2.1 shows the

annual raw material requirement and cost of the project at full capacity production.

Table 2.1 Annual Raw Material Requirement & Cost

Sr.No. Raw material UOM Qty. Total


1 Sulphuric Acid (98%) Kg 50,000,000 400,000,000
2 Salt (NaCl-96%) Kg 105,000,000 315,000,000
3 Packing materials for HCl(50kg Pcs 15,000 90,000
plastic drum)
4 Packing materials sodium Pcs 10,000 100
sulphate(50kg PP bag)
715,090,100

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MARKET STUDY

11
CHAPTER 3

MARKET STUDY

3.1 Historical supply and Demand of products

The historical supply and demand of products of hydrochloric acid trade in to the

Philippines between the years 2007-2016 is presented in Table 3.1.

Table 3.1 Historical Supply of Hydrochloric Acid


Year Supply
2007 25,564,762.00
2008 27,350,398.00
2009 25,637,148.00
2010 28,733,837.00
2011 29,857,286.00
2012 35,761,132.00
2013 26,198,019.00
2014 28,249,267.00
2015 27,243,416.00
2016 26,959,225.00

SUPPLY OF HYDROCHLORIC ACID IN THE PHILIPPINES


40,000,000.00
35,000,000.00
30,000,000.00
25,000,000.00
Quantity (kg)

20,000,000.00
15,000,000.00
10,000,000.00
5,000,000.00
0.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Year
Figure 3.1 Historical Supply of Hydrochloric Acid

Table 3.1 shows the historical supply HCl for the years 2007 to 2016 displays an

inconsistent trend. It also shows the yearly average level of supply which was 26,821,536

kilograms for the period 2007-2010 and has increased significantly to a yearly average level of

12
30,605,479 kilograms and 27,483,969 kilograms during the period 2011-2013 and 2014-2016,

respectively. During the year 2007 to 2008 there was an increase of approximately 14%. During

the last recent three years of 2014 – 2016 the yearly average quantity imported has slightly

decreased by 3,121,510 or a decline of by 11%.

Table 3.2 Historical Demand of Hydrochloric Acid

Year Demand
2007 45,846,090.00
2008 48,654,305.00
2009 41,081,028.00
2010 52,826,180.00
2011 54,998,156.00
2012 49,077,152.00
2013 54,570,129.00
2014 60,230,883.00
2015 59,405,512.00
2016 61,019,996.00

DEMAND OF HYDROCHLORIC ACID IN THE PHILIPPINES

80,000,000.00
Quantity (kg)

60,000,000.00

40,000,000.00

20,000,000.00

-
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Year

Figure 3.2 Historical Data of Supply and Demand of Products

As could be seen from Table 3.2, historical demand of hydrochloric acid in the past ten

years exhibits an increasing trend although it is characterized by fluctuations. The yearly average

level of supply which was 47,101,900 kilograms during the period 2007-2010 and has increased

to a yearly average level of 52,881,812 kilograms and 60,218,797 kilograms during the period

13
2011-2013 and 2014-2016, respectively. During the first two periods, there was a total increase

of about 12%. During the last recent three years of 2014 – 2016 the yearly average quantity

imported has increased by 7,336,985 or an incline of 13.8%. This could be due to a inadequate

source of the product in the Philippines.

3.2 Projected Supply and Demand of products

The demand for hydrochloric acid is highly influenced by the development of the

manufacturing sector particularly the chemical sub sector. Since the Philippines’ economy is on

the way to transform its economic structure to the industrial sector. Providing the least numerical

standard deviation, statistical straight line method was employed in the obtaining of the historical

data to give the possible values of the succeeding years. Supply quantities for the following years

were obtained, and the curve from the projected data shows a sleek curve drifting upwards. Table

3.3 and Table 3.4 show the projected supply and demand of Hydrochloric acid quantity in

kilograms for year 2017 to year 2026. The graphical representation is well visualized in Figure

3.3 and Figure 3.4.

14
Table 3.3 Projected Supply of Hydrochloric acid

Year Supply
2017 27,523,859.55
2018 27,664,212.76
2019 27,804,565.97
2020 27,944,919.18
2021 28,085,272.39
2022 28,225,625.61
2023 28,365,978.82
2024 28,506,332.03
2025 28,646,685.24
2026 28,787,038.45

PROJECTED SUPPLY OF HYDROGEN CHLORIDE IN THE PHILIPPINES

29,000,000.00
28,500,000.00
Quantity (kg)

28,000,000.00
27,500,000.00
27,000,000.00
26,500,000.00
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Year

Figure 3.3 Projected Supply of Hydrochloric Acid

Table 3.4 Projected Demand of Hydrochloric Acid

Year Demand
2017 44,401,387.07
2018 46,261,288.41
2019 48,121,189.75
2020 49,981,091.09
2021 51,840,992.43
2022 53,700,893.77
2023 55,560,795.11
2024 57,420,696.45
2025 59,280,597.79
2026 61,140,499.13

15
PROJECTED DEMAND OF HYDROGEN CHLORIDE IN THE PHILIPPINES

80,000,000.00

60,000,000.00
Quantity(kg)

40,000,000.00

20,000,000.00

0.00
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Year

Figure 3.4 Projected Demand of Hydrochloric Acid

3.3. Determination of Production Output

“When hydrogen chloride (HCl) gas is dissolved in water, a pungent chemical compound

is formed called- Hydrochloric Acid. It is an odorless and colorless solution of Hydrogen,

Chloride and water. It is also known as Muriatic Acid and spirits of salt or acidum salis.

Hydrochloric acid/Muriatic acid is a highly corrosive chemical compound and has several

uses/applications. Here are some applications/uses of Muriatic acid/Hydrochloric acid:” (18Ja1)

1. For the Production of Organic Compounds

“Hydrochloric acid/Muriatic acid has several industrial applications and one such

application is in the production of organic compounds such as dichloroethane and vinyl chloride

for PVC.” (18Ja1)

2. For the Production of Inorganic Compounds

“Hydrochloric acid/muriatic acid is highly used is the production of inorganic compounds

like water treatment chemicals such as polyaluminium chloride (PAC) and iron(III) chloride,

16
which are used as coagulation and flocculation agents in drinking water production, sewage

treatment and paper production.” (18Ja1)

3. For removing metal stains

“Although it is highly corrosive, it is used used to remove stains from metals. It can clean

iron, copper, brass and other metals; however, one should dilute it by adding 9 parts of water to 1

part of the acid. One should not use it directly on metals as it is extremely powerful cleaning

agent.” (18Ja1)

4. For cleaning pools

“Although, pools can be cleaned with normal detergents and scrubs, it is not easy to

remove some stains, which are adhered in between the tiles. In that case, muriatic

acid/hydrochloric acid comes handy. Here also, one should add 10 parts of water to 1 part of acid

to make a solution for cleaning the pool.” (18Ja)

5. For digesting foods

“Hydrochloric acid is also present in the gastric juices in the stomach of human body

which helps in digesting the foods. It acidifies the stomach contents.” (18Ja1)

6. For the purification of Table Salt

“Hydrochloric acid/muriatic acid is used to purify the table salt.” (18Ja)

17
7. For Neutralization and pH Control

“It is used for regulating the acidity (pH) of solutions. It is used to control the pH of

pharmaceutical products, foods and drinking water. It is also used for neutralizing waste streams

(containing alkaline substances).” (18Ja)

8. For regeneration of ion exchangers

“It is used in the regeneration of ion exchange resins. It is used to rinse the cations from

the resins. Demineralized water and ion exchangers are used in drinking water production, all

chemical industries and many food industries.” (18Ja)

9. For oil production

“Hydrochloric acid/muriatic acid is used in the process of oil production. When the acid

is injected into the rock, it forms a large-pore structure, which stimulates oil production.” (18Ja)

In Asia, the demand of Hydrochloric acid is high and our country has a low rate of export

which makes us an uncompetitive country when it comes to the production of Hydrochloric acid.

The company would ensure that the target markets will have a stable supply of benzene at a very

affordable price with a high effectiveness of the process.

The trends are best understood using the historical records of demand and supply of

benzene. There are some factors that have impact the rate of demand and consider the supply in

determining the proper marketing strategy. The marketing strategy is concerned with the

approach on how to enter the market, as well as in determining the potential of the product. In

addition, the market study seeks to determine the demand and supply analysis, the trademarks

18
and trade names, perspective and the product description with their specification, nature and

character.

Terms of Sale and Mode of Payment

The mode of sale and payment is either purchase orders or payment upon each delivery.

The terms can be flexible depending upon the agreement of both parties. It is binding as long as

written documents are provided. Payments would be on check basis and can be acquired through

bank accounts. Credit service is considered in the future marketing practices of the corporation

after establishing its production and marketing.

Marketing Program

The marketing activities of a firm are complex and in order for the corporation to operate

effectively and efficiently under the management concept, it must compete with a single

comprehensive marketing.

Mabuhay Vinyl Corporation is the lone chlor-alkali producer in the Philippines. It is the

country’s manufacturer of caustic soda and hydrochloric acid and the only company that

produces chlorine in commercial quantities. In addition, it supplies more than 50% of the

country’s requirement for sodium hypochlorite. With all its competitors outside the country, the

corporation has a big lead in penetrating the markets. Also provides a better a better quality of

product and achieves practice performance in safety and customer service.

Storage

“Hydrochloric acid is most commonly stored either in rubber-lined steel storage tanks or

in fiberglass-reinforced plastic storage tanks. The rubber-lined steel tanks are usually more

19
expensive to install and are generally used when larger volumes of acid are stored and the chance

of tank damage (puncture, tear, etc.) is greater due to external physical stress in a high density

work or traffic area. A storage tank should have a concrete containment dike coated with an acid-

resistance coating to confine any spilled product. Storage tanks should be equipped with

instrumentation to accurately measure tank inventory and provide notification if the storage tank

is approaching an over-filled condition.” (18Ja2)

Packaging

Hydrochloric acid is initially stored in storage tank and delivered by bulk in tube trailer.

The product is carried in special rubberized cisterns, polymer barrels, containers. The trademark

and trade name are inscribed on the container trucks with precautionary labels in order to supply

sufficient information with regards to proper handling of this commodity.

Pricing

Pricing is a source of revenue and a chief determinant of profit however it is not a simple

task. The deciding factor in basic pricing depends on the accumulation of cost, the features of the

product and the competing firm’s price. The prices are subjected to change due to demand of

products and economic situations. The commodity costs Php 20.40 per kg.

20
TECHNICAL

ANALYSIS

21
CHAPTER 4

TECHNICAL ANALYSIS

4.1 Process

Figure 4.1 Hydrochloric Acid Production Process

The figure 4.1 illustrates schematically a preferred embodiment of the process providing

continuous operation and recovery. Referring to the figure, a three stage reactor system is shown

including the agitator reaction vessels 1, 2, and 3. Equipment for recovery is also illustrated. The

recovery apparatus for the sodium sulfate includes a rotary filter at line 12, a centrifuge at line

15, and a rotary dryer at line 16. A scrubbing tower at line 10 is provided for scrubbing the

hydrogen chloride gas and for removing entrained impurities.

22
“In operation, solid sodium chloride feed is introduced to the initial reactor 1 through line

5, which is a duct appropriately fitted with double control valves at line 2 for regulating passage

of the salt from storage hopper at line 2. Sulfuric acid from the storage tank at line 9 is fed

through a line 10 to a drying or scrubbing tower at line 10 the function of which is hereafter

explained. Sulfuric acid leaves the scrubbing tower at line 9 through the line 10. The acid is

virtually unchanged and is combined with a stream of recirculated reaction medium returned in

line 11. The mixture is then fed to initial reactor 1 through line 8.” (18Ja23)

“The reaction vessels 1, 2, 3 are cylindrical totally enclosed chambers, preferably

fabricated of high silicon cast iron. External heating means, not shown, are provided to maintain

the desired operating temperature. Agitation of the material within the reactors is provided by

impeller type agitator 19, 20, and 21 assemblies at lines 1, 2, and 3. In the reaction, the hydrogen

chloride produced is evolved as a gas which is taken overhead from the reactors through lines 3,

5, 7, these streams being combined in a manifold at line 5 and introduced at the base of the

drying tower at line 10.” (18Ja23)

“The reacting mixture overflows from reactor at line 1 through line 3 to the second

reactor at line 2, and thence through overflow line 5 to reactor 3, at a rate determined by the feed

rate. The effluent from final reactor 3 is passed through line 7 to the sodium sulfate purification

or recovery section.” (18Ja23)

“The sodium sulfate recovery section performs several functions. Anhydrous sodium

sulfate, free of sodium chloride impurity and substantially free of acidity, is obtained as desired.

In addition, the reaction medium is substantially completely recovered for recycle to the reaction

section.” (18Ja23)

23
“In operation of the neutralizing tank, the system is maintained at a temperature above

35°C. If lower temperatures are used, a quantity of the sodium sulfate hydrate, Na2SO4·10H2O,

will be produced. This defeats an object of the process and is disadvantageous in that it will

increase the load on a subsequent drying operation.” (18Ja23)

“The discharge stream from the neutralizing tank at line 13 consists of relatively thick

slurry of neutralized anhydrous sodium sulfate in the saturated sodium sulfate solution. The

slurry is discharged by line 15 to a centrifuge at line 15, which returns the liquid phase through

line 14 to be reused in the neutralizing tank. The neutralized sodium sulfate, containing only an

adherent film of liquid, is discharged from the centrifuge by chute 34 to the final step of drying

in a rotary drier at line 16, which vaporizes the residual water content and discharges the final

product in chute at line 16.” (18Ja23)

“Salt and sulfuric acid are supplied from the salt storage bin at line 1 and the sulfuric acid

supply drum at line 9 at the rate of 85 parts of sulfuric acid to about 100 parts of salt (NaCl). The

sulfuric acid is of 98 percent strength, these feed ratios thus corresponding to about 2 moles of

salt to 1 mole =of sulfuric acid. The sulfuric acid is supplied initially to the scrubbing tower at

line 10 for removal of entrained liquid droplets from the hydrogen chloride gas produced by the

reaction.” (18Ja23)

“Leaving the scrubbing tower at line 10, the sulfuric acid is joined by recycled reaction

medium from the settler at line 11, fed through line 12 to the acid line 16, and also by recycled

reaction medium from the filter at line 14, returned through line 12. The returned reaction

medium streams are in the proportion of about 1140 pounds and 280 pounds per 100 pounds of

sulfuric acid, from the settler and the filter.” (18Ja23)

24
“If desired, the reaction medium recovered from the solid salt cake product may be

returned directly to the reactor section without intermingling with the sulfuric acid. The reaction

medium is maintained, while going through the settling and filtering operation, at a temperature

of about 150 C. or preferably above, to assure acidity.” (18Ja23)

“The salt is fed directly to the initial reactor 1 through the supply line 5. The salt and acid

react smoothly and rapidly in the reactors, the reacting system being maintained at a temperature

of from 200 to 250 C. A total residence time of approximately one-half hour results in virtually

complete reaction, that is, reaction to the point that there is virtually no chloride in the product

slurry discharged from the initial reactor at line 3 through the overflow line 7. The product slurry

contains about 10 parts of solid anhydrous sodium sulfate crystals to 100 parts of reaction

medium.” (18Ja23)

“The treated aqueous slurry is over flowed to a centrifuge at line 15. The centrifuged

crystals are discharged through a chute at line 15 to a rotary drier at line 18. Drying here is

merely by warm air to evaporate the water component of the liquid residue wetting the

centrifuged crystals. The final sodium sulfate product is discharged by a chute at line 18 to

storage or freight cars. A virtually complete yield is obtained of high grade, acid free anhydrous

sodium sulfate.” (18Ja23)

“The hydrogen chloride gas delivered by the overhead at line 10 from the scrubbing

tower is free of any volatile impurities and being anhydrous is suitable for immediate use in

subsequent operations.” (18Ja23)

“As previously stated, an object of the invention is to provide a process which is operated

at quite mild temperature conditions, contrasted with the conditions for a Mannheim furnace type

25
operation. The process provides this result in very high degree. The reaction medium provided is

completely fluid at temperatures of 15-175 C and above. Feasible operating temperatures range

from 150 to 350 C although the preferred temperature range is from 200 to 250 C. The preferred

temperature range provides an especially beneficial combination of high fluidity, stability and

non-corrosives. Above 350 C the corrosives of the system increases rapidly.” (18Ja23)

“The absence of rapid conversion was amply shown by corrosion tests of a variety of

ferrous metals. The best material for reactor service was found to be the high silicon ferrous

alloys. Corrosion rates only of the order of 0.01 inch a year were experienced in contrast to rates

equivalent to several inches per year found in certain parts of a Mannheim furnace.” (18Ja23)

“The normal feed ratio of salt and sulfuric acid is always maintained at approximately

two moles of salt to one mole of sulfuric acid (as pure H2804). Slight variations, preferably on

the side of excess acid, can be tolerated. In general, however, the stoichiometric proportions are

desirable. Owing to the relatively low temperature of operation, there is virtually no

decomposition of sulfuric acid, so that the yield on the sulfuric acid basis in the present process

is appreciably better than in a Mannheim type process.” (18Ja23)

“With respect to the proportions of salt and sulfuric acid to the circulating reaction

medium, it is found highly desirable that these be in proportions providing from about 5 to l5

parts of solid sodium sulfate product to parts of reaction medium. In terms of the feed rates, this

corresponds to about 4 to 12.3 parts of salt, and 3.5 to 10.5 parts of sulfuric acid, to 100 parts of

reaction medium. This range of feed rates will provide product slurry having the desired

proportions of solid sodium sulfate crystals present. Controlling the components in these ranges

will assure high fluidity of the discharge stream from the reactor section and thus facilitate ease

26
of transport. The proportions of solid sodium sulfate, on the other hand, are not so low that the

recovery operations are efficient.” (18Ja23)

4.2 Materials Selection

Process Equipment And Specifications

Reactor Vessel/Agitator (3 units)

Reactor vessels are vessels designed to contain chemical reactions. The reactants

contained are substances that change form after a chemical reaction. Excel Plants & Equipment

Pvt Ltd pr and Krish Engineering provides such various high quality reactor vessels.

Design Internal Pressure: 200psig Diameter: 2 m

Design Temperature: 125°F Length: 5.5 m

Density of Benzene: 1490 kg/m3 Volume: 1500gallons

Storage tanks (2 units)

(Fiberglass-Reinforced Plastic (FRP) Tanks)

“A fiberglass-reinforced plastic (FRP) tank is constructed in layers of fiberglass and each

layer is mixed with resin. The selection of the resin is extremely important, and the tank

manufacturer should specify how each layer will be constructed and specify the correct type of

resin for the specific application. Fiberglass tanks are not always designed to withstand pressure

or vacuum so proper venting is critical, especially if the product is to be loaded into the tank with

air pressure. The tank manufacturer should be consulted for a recommendation on proper vent

openings and pressure/vacuum relief systems.” (18Ja24)

Capacity: 150,000 kilograms Temperature: 1350°F

Pressure: 150psig Radius: 7.62 to 18.288 m

27
Nominal thickness: 6.35 m

Scrubbing tower (Hydrochloric Acid Fume Scrubbers) (1 unit)


“A fume scrubber should be utilized as part of the storage system to eliminate the release

of irritating and corrosive vapors into the work place and atmosphere, both during unloading

operations and during "static" storage conditions. Many localities require the use of a fume

scrubber. . Some states require a certain hydrochloric acid fume scrubber efficiency for a

scrubber to be covered under permit-by-rule, eliminating the need to obtain an air permit.

Facilities should check with their respective states for air permitting requirements.” (18Ja25)

Efficiency: 50-60 % Column Height: 48.8m

Column Diameter: 20.07m Design Temperature: 1245°F

Design Pressure: 300-700 psig

Settling tank (1 unit) (rectangular basin)

Rectangular settling, basins or clarifiers, are basins that are rectangular in plans and cross

sections. In plan, the length may vary from two to four times the width. The length may also

vary from ten to 20 times the depth. The depth of the basin may vary from 2 to 6 m. The influent

is introduced at one end and allowed to flow through the length of the clarifier toward the other

end.

Length: 25 – 40 m Temperature: 850°F

Pressure: 150 psig Depth: 13.5 m

Width: 10 – 25 m

28
Rotary filter (1 unit)

“The filter is rated by the size [filter area] of the drum and its potential output [typically

expressed as pounds per hour of dry solids per square foot of filter area; pre-coat filters are rated

by hydraulics instead of by solids]. The sizing of the auxiliary package components is dependent

upon the area of the filter and the type of application. Since rotary vacuum filters can handle

such a wide range of materials, expected solids output can range from 5# to 200# per hour per

square foot and 2 gallons to 40 gallons per hour per square foot.” (18Ja29)

Permeability: 50-150 cfm/ft² Diameter: 3.28 m

Fiber: polypropylene Filter: 0.5 Micron

Power: 4 HP

Rotary Dryer (1 unit)

“Rotary dryers are a highly efficient industrial drying option for bulk solids. They are

often chosen for their robust processing capabilities and their ability to produce uniform results

despite variance in feedstock. Rotary dryers work by tumbling material in a rotating drum in the

presence of a drying air. They can also be indirectly heated to avoid direct contact between the

material and processing medium.” (18Ja30)

Drum

“The drum is positioned at a slight horizontal slope to allow gravity to assist in moving

material through the drum. As the drum rotates, lifting flights pick up the material and drop it

through the air stream in order to maximize heat transfer efficiency. When working with

agglomerates, the tumbling action imparted by the dryer offers the added benefit of further

rounding and polishing the granules.” (18Ja30)

29
Diameter: 0.9144 – 4.572 m Material: Specialty Alloys

Capacity: 1000 kg/hr – 200000 kg/hr Power: 15kw

Centrifuge (1 unit)

A suspension feed enters the process to undergo pre-acceleration and distribution. The

subsequent processes involve main filtration and intermediate de-watering, after which the main

filtrate is collected. Wash liquid enters the washing step and final de-watering follows. Wash

filtrate is extracted from these two stages. The final step involves discharge of solids which are

then collected as the finished product. These process steps take place simultaneously in different

parts of the centrifuge.

Basket diameter: 5m Number of stages: 3

Max. Rotation speed: 1200/min Length: 8m

Width: 4m

Piping

“All piping systems should be well supported. The coldest ambient temperature that may

be encountered should be considered in the selection of piping. Lined steel systems also do not

require gaskets at flanged connections. The liner itself acts as the gasket mating material.

Common lining materials are polypropylene (PP), polyvinylidene fluoride (PVDF) and

polytetrafluoroethylene (PTFE). Pipes are typically carbon steel manufactured to ASTM F-1545

specifications.” (18Ja31)

30
Hoses

“Acid resistant hoses can be used to handle hydrochloric acid for both suction and

discharge applications. Viton®2, natural rubber, neoprene, butyl rubber and Hypalon®2 are

some of the materials that offer good chemical resistance to hydrochloric acid.” (18Ja32)

Pumps

“Centrifugal pumps are commonly used when pumping hydrochloric acid. Magnetic

drive centrifugal pumps have an advantage in that no seal is required which eliminates the

possibility of leakage through a seal. A double mechanical seal should be considered if sealed

pumps are used. The gland area of the pump should be shielded for personnel protection.

Hydrochloric acid transfer or offloading pumps should be equipped with instrumentation to

prevent continued operation when the pump is dead-headed or running dry. A minimum flow

recycle line will also help to prevent pump damage from dead-heading.” (18Ja33)

Valves

“Depending upon the type of valve employed, a number of chemically resistant polymers

may be suitable for valve lining. Examples are: PFA (perfluoroalkoxy), PTFE

(polytetrafluoroethylene), PVDF (polyvinylidene fluoride) and PP (polypropylene). Composite

body ball valves have bodies, balls, and handles made of a fiberglass reinforced epoxy resin.”

(18Ja34)

31
4.4 MATERIAL AND ENERGY BALANCE

Figure 4.2 Scrubbing tower

32
Figure 4.3 Dryer heat balance

33
PARAMETER Input
Heat input from electrically heated hot air
from atmosphere at 95% efficiency of kJ/h 5624130 100 Hin
water

I Heat for liquid evaporation


(i) Heating from inlet to WBT kJ/h 105739 1.87 Heh
(ii) Vapourising at WBT kJ/h 2840573 50.28 Hlv
(iii) Heating vapours from WBT to
kJ/h 139766 2.47 Hesvp
gas outlet temperature

Dryer thermal
Sub Total I kJ/h 3086078 54.87
efficiency
II Heat for outgoing
(i) solid product form inlet to outlet kJ/h 94599 1.67 Hs
(ii) moisture in dried product from
inlet to outlet kJ/h 1745 0.03 Hmd

Heat lost in
Sub Total II kJ/h 96344 1.7
outgoing material
III Heat absorbed by dryer from gas 3395147 60.37
kJ/h Hg
flow before exhaust

IV Unaccounted loss 212725 3.78

(Hg-Subtotal I + Subtotal II) kJ/h Radiation loss HR

(due to radiation)

V Heat lost in exhaust 2228843 39.63


kJ/h Exhaust loss Hexh
[Hin – (subtotal I + subtotal II + HR)]

34
4.3 Utilities

The major utilities of the proposed plant are electricity furnace oil and water. The total

annual cost of utility is estimated at Php 14,696,149.43. The annual utility requirement and cost

are indicated in Table 2.2.

Table 4.1 ANNUAL UTILITIES REQUIREMENT & COST

Sr.No. Description UOM Qty Cost (Php)


1 Electricity kWh 912,000 6,764,851.2
2 Furnaces oil Lt. 240,000 6,462,947.17

3 Water m3 80,000 1,468,351.06


Total 14,696,149.43

The electricity that is being utilized is from Manila Electric Company. And the

processing water is from the Bulacan Water District. Furnaces oil is purchased through import

from Nexton Lubricants, Gujarat, India.

35
FINANCIAL ASPECT

36
CHAPTER 5

FINANCIAL ASPECT

This chapter is the most important part in establishing a plant wherein the financial aspect

of the project is being discussed. The profitability of an industrial plant depends on the strategies

employed in technical, management and marketing aspect of the company. However, studying

the effects of these strategies requires that the project is already operational. Thus, an initial

study on the financial aspect of the project is made.

Included here are the calculations for the income statement wherein all income and

expenses are accounted for together with the balance sheet and the rate of return on investment.

This rate of return serves as the deciding factor whether to continue the said project or not. This

is also a means of establishing the productivity and profitability of the project.

Total capital investment is determined by estimation and projection of all costs, direct

and indirect, necessary for the realization of the plant.

Preparation of the sets of financial estimates based on varying assumptions helps to

determine the most commercially feasible combination of project specifications.

5.1 Financial Assumptions

Projected financial expenditures and statements for the project are enclosed in this

chapter, computed based on the following assumptions;

1. The plant will operate on a 24-hour a day basis, 330 days a year for the production

department with 35 days allotted for shutdowns.

2. Depreciation of machines, equipment and buildings are estimated using the Straight Line

Method.

3. SSS, PhilHealth, Maternity and Paternity Leave, 13th month pay and retirement are

included as benefits. Every employee is entitled to it.

37
4. All Hydrochloric Acid produced are sold, no inventories will be needed.

5. Tax rate is equal to 35%

6. There will be no royalties and patents cost.

7. Service facilities are rough estimates.

8. Plant and administration buildings cost is based on a fully furnished structure cost per

square meter.

9. The salvage value for laboratory apparatus and operating supplies is assumed to be zero.

10. All plant and office supplies are consumed within the year of purchase.

11. Salary increase of 5% per year.

12. The cost of dividends is 25% of the gross earnings of each year.

13. Salaries of workers are based on regular time.

14. Night shift differential computation as included for type of workers who has 3 shifts

namely 6am- 2pm, 2pm- 10on, 10pm-6am.

5.2 Sources of Financing

Hayyan Chemical Corporation is basically financed by the stockholders- the common

stockholders and the preferred stockholders. The common stockholders are responsible in

financing the fixed capital cost of the corporation. The common stockholders are entitled to the

net assets of the business and they are those that sign the Article of Incorporation. On the other

hand, the preferred stockholders are engaged to finance the company and entitled to have shared

dividends and assets of the corporation.

38
Table 5.1
Hayyan Chemical Corporation
Estimation of Total Capital Investment

DIRECT COST
A. EQUIPMENT
Equipment cost and freight cost 43,064,742.05
Installation including insulation and
painting 10,766,185.51
Instrumentation and Control 8,612,948.41
Piping 12,919,422.61
Electrical wring 8,612,948.41
TOTAL 83,976,246.99
B. BUILDINGS
Administrative Building 6,210,000.00
Guard House 31,500.00
Yard Improvement 861,295.84
Power House 850,000.00
Deep Well 500,000.00
Staff House 690,000.00
Recreational Facility 300,000.00
Raw Material Storage 10,920,000.00
Production Office and Laboratory 2,300,000.00
Water Treatment Facility 13,475,631.52
TOTAL 36,138,426.36
C. SERVICE UTILITIES
Laboratory Equipment 4,226,636.05
Transportation Facilities 8,010,000.00
Engineering Tools 410,000.00
TOTAL 12,646,636.05
D. LAND 87,415,484.00
TOTAL DIRECT COST 220,176,793.40

INDIRECT COST
A. Engineering and Supervision 4,306,474.20
B. Legal Expenses 4,599,607.04
C. Contractor's Fee 4,599,607.04
D. Continguency 2,153,237.10
TOTAL INDIRECT COST 15,658,925.39

FIXED CAPITAL INVESTMENT 235,835,718.8


WORKING CAPITAL 41,583,124.22
TOTAL CAPITAL INVESTMENT 277,418,843.02

39
Table 5.2
Hayyan Chemical Corporation
Equipment Cost Estimation and Accumulated Depreciation for Five Years

Useful
No. of Equipment Equipment Unit Cost Total Cost Salvage Value Accumulated Depreciation
Life
2021 2022 2023 2024 2025
Rotary Filter
1 602,586.25 602,586.25 60,258.63 15 36,155.18 72,310.35 108,465.53 144,620.70 180,775.88
Settling Tank
1 665,899.30 665,899.30 66,589.93 15 39,953.96 79,907.92 119,861.87 159,815.83 199,769.79
Storage Tank
2 9,159,654.25 18,319,308.50 1,831,930.85 20 824,368.88 1,648,737.77 2,473,106.65 3,297,475.53 4,121,844.41
Rotary Dryer
1 785,658.50 785,658.50 78,565.85 20 35,354.63 70,709.27 106,063.90 141,418.53 176,773.16
Centrifuge
1 500,156.25 500,156.25 50,015.63 20 22,507.03 45,014.06 67,521.09 90,028.13 112,535.16
Reactor Vessel / Agitator
3 823,584.65 2,470,753.95 247,075.40 25 88,947.14 177,894.28 266,841.43 355,788.57 444,735.71
Scrubbing Tower
1 3,817,689.60 3,817,689.60 381,768.96 13 264,301.59 528,603.18 792,904.76 1,057,206.35 1,321,507.94
TOTAL
10 27,162,052.35 1,311,588.41 2,623,176.82 3,934,765.23 5,246,353.64 6,557,942.05

40
Table 5.3
Hayyan Chemical Corporation
Insurance Cost for Building and Equipment and Local Tax Estimation

Administrative building cost 7,231,500.00


Process building cost 13,220,000.00
PROCESS ADMINISTRATIVE TOTAL
Earthquake, Fire and Shock Insurance 5,288.00 2,862.60 8,150.60
(0.04% of Total Building Cost)
Typhoon Insurance 33,050.00 18,078.75 51,128.75
(0.25% of Total Building Cost)
Fire and Lightning Insurance 429,650.00 235,023.75 664,673.75
(3.25% of Total Building Cost)
Extended Coverage 1,322.00 723.15 2,045.15
0.01 of Total Building Cost) 725,998.25
TOTAL BUILDING INSURANCE
Equipment Insurance 365,695.47 365,695.47
(0.653% of Total Purchased Cost)
TOTAL ANNUAL INSURANCE EXPENSE 835,005.47 256,688.25 1,091,693.72

41
Table 5.4
Hayyan Chemical Corporation
Cost Estimation and Accumulated Depreciation or Service Facilities

Facility Units Unit Cost Scrap life Total Cost Accumulated Depreciation
2021 2022 2023 2024 2025
Wastewater
1
Treatment 13,475,631.5 1,347,563 15 13,475,631.52 808,537.89 1,617,075.78 2,425,613.67 3,234,151.56 4,042,689.46
Deep well 1 500,000.00 50,000.00 15 500,000.00 30,000.00 60,000.00 90,000.00 120,000.00 150,000.00
Power
1
facility 850,000.00 85,000.00 15 850,000.00 51,000.00 102,000.00 153,000.00 204,000.00 255,000.00

TOTAL 14,825,631.52 889,537.89 1,779,075.78 2,668,613.67 3,558,151.56 4,447,689.46

Table 5.5
Hayyan Chemical Corporation
Cost Estimation for Fire Protection Equipment and Accumulated Depreciation

No. of units Unit Cost Total Cost Scrap Useful life Accumulated Depreciation
2021 2022 2023 2024 2025
Medical First Aid Kit 10 2,319.45 23,194.50 2,319.45 5 4,175.01 8,350.02 12,525.03 16,700.04 20,875.05
Laboratory Safety Equipment 1 9,088.79 9,088.79 908.88 5 1,635.98 3,271.96 4,907.95 6,543.93 8,179.91
Process Safety Equipment 1 42,952.69 42,952.69 4,295.27 5 7,731.48 15,462.97 23,194.45 30,925.94 38,657.42
Fire Extinguisher 20 2,577.16 51,543.20 5,154.32 5 9,277.78 18,555.55 27,833.33 37,111.10 46,388.88
Fire Hose 10 2,319.45 23,194.50 2,319.45 5 4,175.01 8,350.02 12,525.03 16,700.04 20,875.05
TOTAL 26,995.26 53,990.52 80,985.79 107,981.05 134,976.31

42
Table 5.6
Hayyan Chemical Corporation
Cost Estimation and Land Structural Facilities

Area Unit Cost Cost Life Salvage Value 2021 2022 2023 2024 2025
Structural Costs
Administrative Building 414 15000.00 6,210,000.00 20 621000.00 279450.00 558900.00 838350.00 1117800.00 1397250.00
Guardhouse 4.5 7000.00 31,500.00 20 3150.00 1417.50 2835.00 4252.50 5670.00 7087.50
Recreational Facility 60 5000.00 300,000.00 20 30000.00 13500.00 27000.00 40500.00 54000.00 67500.00
Staffhouse 69 10000.00 690,000.00 20 69000.00 31050.00 62100.00 93150.00 124200.00 155250.00
Total 7,231,500.00 723150.00 325417.50 650835.00 976252.50 1301670.00 1627087.50

Process Structures
Production office and
Laboratory Building 230 10000.00 2,300,000.00 20 230000.00 103500.00 207000.00 310500.00 414000.00 517500.00
Tire Storage 2184 5000.00 10,920,000.00 20 1092000.00 491400.00 982800.00 1474200.00 1965600.00 2457000.00
Total 13,220,000.00 40 1,322,000.00 594,900.00 1,189,800.00 1,784,700.00 2,379,600.00 2,974,500.00
Total Structural Cost 20,451,500.00 2,045,150.00 920,317.50 1,840,635.00 2,760,952.50 3,681,270.00 4,601,587.50

43
Table 5.7a
Hayyan Chemical Corporation
Labor Schedule for Five Years (continued)

No. of Monthly
Employee Employees Salary Gross Salary Philhealth/month SSS/month
total total
total/month total/year PS ES ES PS ES ES
ADMINISTRATIVE
PERSONNEL

Board of Directors 5 8,000.00 40,000.00 480000 125 125 625 500 920 4600
President 1 63185.47 63,185.47 758225.64 125 125 125 500 920 920
Executive Secretary 1 12,637.09 12,637.09 151645.08 125 125 125 333.3 616.7 616.7
Vice President for Administration 1 44229.83 44229.83 530757.96 125 125 125 500 920 920
General Services Supervisor 1 18,955.64 18,955.64 227467.68 125 125 125 333.3 616.7 616.7
Human Resource Officer 1 18,955.64 18,955.64 227467.68 125 125 125 500 920 920
Vice President for Manufacturing 1 44,229.83 44,229.83 530757.96 125 125 125 500 920 920
Vice President for Finance 1 44,229.83 44,229.83 530757.96 125 125 125 500 920 920
Marketing Manager 1 27,801.61 27,801.61 333619.32 125 125 125 500 920 920
Treasurer 1 18,955.64 18,955.64 227467.68 125 125 125 500 920 920
Cashier 1 8,845.97 8,845.97 106151.64 125 125 125 500 920 920
Purchasing Officer 2 15,164.41 30,328.82 363945.84 125 125 250 333.3 616.7 1233.4
Sales representative 2 7,582.26 15,164.52 181974.24 125 125 250 400 738 1476
Company Nurse 2 10,109.68 20,219.36 242632.32 125 125 250 500 920 1840
doctor 1 27,801.61 27,801.61 333619.32 125 125 125 500 920 920
accountant 1 18,955.64 18,955.64 227467.68 125 125 125 600 920 920
Janitor 2 7,582.26 15,164.52 181974.24 125 125 250 500 920 1840
Secretary 4 10,109.68 40,438.72 485264.64 106.25 106.25 425 300 556 2224
Clerk 1 10,109.68 10,109.68 121316.16 106.25 106.25 106.25 300 556 556
Receptionist 1 10,109.68 10,109.68 121316.16 106.25 106.25 106.25 300 556 556
Driver 6 8,845.97 53,075.82 636909.84 106.25 106.25 637.5 266.7 495.3 2971.8
Total Administrative Salary 583,394.92 7,000,739.04 4400 27730.6

44
Table 5.7b
Hayyan Chemical Corporation
Labor Schedule for Five Years (continuation of Manufacturing Personnel)

Net Salary
Total/year
13th
per month total/month total/year with 13th 2021 2022 2023 2024 2025
month pay
month pay
12,012.09 12,012.09 144,145.08 12,637.09 156,782.17 156,782.17 168,389.22 172,496.28 176,603.33 180,710.39
18,330.64 18,330.64 219,967.68 18,955.64 238,923.32 238,923.32 252,583.90 258,744.49 264,905.07 271,065.65
9,484.68 28,454.04 341,448.48 30,329.04 371,777.52 371,777.52 404,134.46 413,991.40 423,848.33 433,705.27
15,375.00 15,375.00 184,500.00 16,000.00 200,500.00 200,500.00 213,200.00 218,400.00 223,600.00 228,800.00
15,375.00 46,125.00 553,500.00 48,000.00 601,500.00 601,500.00 639,600.00 655,200.00 670,800.00 686,400.00
15,375.00 15,375.00 184,500.00 16,000.00 200,500.00 200,500.00 213,200.00 218,400.00 223,600.00 228,800.00
15,375.00 15,375.00 184,500.00 16,000.00 200,500.00 200,500.00 213,200.00 218,400.00 223,600.00 228,800.00
9,484.68 28,454.04 341,448.48 30,329.04 371,777.52 371,777.52 404,134.46 413,991.40 423,848.33 433,705.27
9,703.43 29,110.29 349,323.48 30,329.04 379,652.52 379,652.52 404,134.46 413,991.40 423,848.33 433,705.27
9,651.38 86,862.42 1,042,349.04 90,987.12 1,133,336.16 1,133,336.16 1,212,403.37 1,241,974.19 1,271,545.00 1,301,115.82
9,484.68 28,454.04 341,448.48 30,329.04 371,777.52 371,777.52 404,134.46 413,991.40 423,848.33 433,705.27
8,473.02 101,676.24 1,220,114.88 106,151.64 1,326,266.52 1,326,266.52 1,414,470.60 1,448,969.89 1,483,469.17 1,517,968.45
425,603.80 5,553,293.25 5,553,293.25 5,943,584.93 6,088,550.45 6,233,515.89 6,378,481.39

989,565.32 12,904,226.41 12,904,226.41 13,717,340.24 14,051,891.13 14,386,459.89 14,721,028.75

45
Table 5.8
Hayyan Chemical Corporation
Projected Balance for the First Five Years
ASSETS Year 2021 Year 2022 Year 2023 Year 2024 Year 2025
Current Assets

Cash 142,452,113.70 193,659,145.25 233,770,125.98 274,038,263.37 314,847,263.3


7
Total Current Assets 142,452,113.70 193,659,145.25 233,770,125.98 314,847,263.37
274,038,263.37
Fixed Assets
Land 87,415,484.00 87,415,484.00 87,415,484.00 87,415,484.00
87,415,484.00
Buildings 88,079,000.00 88,079,000.00 88,079,000.00 88,079,000.00
88,079,000.00
Less: Accumulated Depreciation 2,659,170.00 85,419,830.00 5,318,340.00 82,760,660.00 7,977,510.00 80,101,490.00 10,636,680.00 74,783,150.00
77,442,320.00 13,295,850.00
Equipment- Admin & Selling 2,316,500.00 2,316,500.00 2,316,500.00 2,316,500.00
2,316,500.00
Less: Accumulated Depreciation 232,105.71 2,084,394.29 464,211.42 1,852,288.58 696,317.13 1,620,182.87 928,422.84 1,155,971.45
1,388,077.16 1,160,528.55
Equipment- Plant 91,655,000.00 91,655,000.00 91,655,000.00 91,655,000.00
91,655,000.00
Less: Accumulated Depreciation 3,559,065.00 88,095,935.00 7,118,130.00 84,536,870.00 10,677,195.00 80,977,805.00 14,236,260.00 73,859,675.00
77,418,740.00 17,795,325.00
Transportation 9,800,000.00 9,800,000.00 9,800,000.00 9,800,000.00
9,800,000.00
Less: Accumulated Depreciation 588,000.00 9,212,000.00 1,176,000.00 8,624,000.00 1,764,000.00 8,036,000.00 2,352,000.00 6,860,000.00
7,448,000.00 2,940,000.00
Engineering Tools 195,000.00 195,000.00 195,000.00 195,000.00
195,000.00
Less: Accumulated Depreciation 16,498.42 178,501.58 32,996.84 162,003.16 49,495.26 145,504.74 65,993.68 112,507.90
129,006.32 82,492.10
Laboratory Equipment 1,186,524.50 1,186,524.50 1,186,524.50 1,186,524.50
1,186,524.50
Less: Accumulated Depreciation 106,787.21 1,079,737.29 213,574.42 972,950.08 320,361.63 866,162.87 427,148.84 652,588.45
759,375.66 533,936.05
Service Facilities 1,138,200.00 1,138,200.00 1,138,200.00 1,138,200.00
1,138,200.00
Less: Accumulated Depreciation 69,438.00 1,068,762.00 138,876.00 999,324.00 208,314.00 929,886.00 277,752.00 791,010.00
860,448.00 347,190.00
Total Fixed Assets 274,554,644.16 267,323,579.82 260,092,515.48 252,861,451.14 2245,630,386.80

Total Assets 417,006,757.86 460,982,725.07 493,862,641.46 560,477,166.17


526,899,714.51

LIABILITIES AND CAPITAL


Liabilities
Tax 20849772.53 20919513.52 20903592.47 20945488.23 21140279.37
SSS and Medicare 547740 547740 547740 547740 547740
Dividends Payable 10976556.56 10968098.5 10990335.62 11093838.41
Total Current Liabilities 21397512.53 32443810.08 32419430.97 32483563.85 32781857.78
Equity
Stockholder's Equity 266985734.7 310743761.3 343673431 376577726.5 409548793.4
Retained Earnings 43758026.63 310743761.3 32929669.67 343673431 32904295.5 376577726.5 32971066.86 409548793.4 33281515.24 442830308.6

Total Liabilities and Capital 332141273.9 376117241.1 408997157.5 442032357.2 475612166.4

46
Table 5.9
Hayyan Chemical Corporation
Projected Balance of Salt Cake for the First Five Years

Salt cake 2020 2021 2022 2023 2024


Quantity Kg Amount Quantity Kg Amount Quantity Kg Amount Quantity Kg Amount Quantity Kg Amount
Beginning 1,715,175,000.0
- - 148,500,000.00 1,559,250,000.00 163,350,000.00 164,835,000.00 1,730,767,500.00 164,983,500.00 1,732,326,750.00
Inventory 0
Add: Production 1,485,000,000 15,592,500,000 1,485,000,000 17,151,750,000 1,485,000,000 18,711,000,000 1,485,000,000.00 20,270,250,000.00 1,485,000,000.00 21,829,500,000.00
1,485,000,000. 15,592,500,000 1,633,500,000. 1,648,350,000. 20,426,175,000.
Available for sale 18,711,000,000.00 1,649,835,000.00 22,001,017,500.00 1,649,983,500.00 23,561,826,750.00
00 .00 00 00 00
Less: Ending 1,559,250,000. 1,730,767,500.0
148,500,000.00 163,350,000.00 1,715,175,000.00 164,835,000.00 164,983,500.00 1,732,326,750.00 164,998,350.00 1,732,482,675.00
inventory 00 0
1,336,500,000. 14,033,250,000 1,470,150,000. 1,483,515,000. 18,695,407,500.
Poduct Sold 16,995,825,000.00 1,484,851,500.00 20,268,690,750.00 1,484,985,150.00 21,829,344,075.00
00 .00 00 00 00
Unit Cost of Salt
10.50 11.56 12.60 13.65 14.70
cake

Table 5.10
Hayyan Chemical Corporation
Projected Balance of HCl for the First Five Years

price per kg of PHP


HCl 20.40

HCl 2021 2022 2023 2024 2025


Quantity Kg Amount Quantity Kg Amount Quantity Kg Amount Quantity Kg Amount Quantity Kg Amount
Beginning
- - 6,012,385.53 122,652,664.71 6,613,624.08 134,917,931.18 6,673,747.93 136,144,457.83 6,679,760.32 136,267,110.4
Inventory
Add:
60,123,855.25 1,226,526,647.10 60,123,855.25 1,349,179,311.81 60,123,855.25 1,471,831,976.52 60,123,855.25 1,594,484,641.23 60,123,855.25 1,717,137,305
Production
Available for
60,123,855.25 1,226,526,647.10 66,136,240.78 1,471,831,976.52 66,737,479.33 1,606,749,907.70 66,797,603.18 1,730,629,099.06 66,803,615.57 1,853,404,416
sale
Less: Ending
6,012,385.53 122,652,664.71 6,613,624.08 134,917,931.18 6,673,747.93 136,144,457.83 6,679,760.32 136,267,110.49 6,680,361.56 136,279,375
inventory
Product Sold 54,111,469.73 1,103,873,982.39 59,522,616.70 1,336,914,045.34 60,063,731.39 1,470,605,449.87 60,117,842.86 1,594,361,988.57 60,123,254.01 1,717,125,040
Unit Cost of
20.4 22.46060606 24.48408408 26.52061206 28.5600816
HCl

47
SITE SELECTION

48
CHAPTER 6

SITE SELECTION

6.1 Plant Size and Production Schedule

The total plant area of the company, 7 hectares, includes provisions for expansion. The

rated annual plant capacity is 65,000 MT. The plant will be operated for 24 hours a day, 7 days a

week, having three 8-hour shifts. The plant would be operational for 330 days per year wherein

the remaining thirty-five (35) days is allotted for shutdowns, startups, preventive and corrective

maintenance, cleaning of machineries and any unforeseen problems.

The following factors are considered in the selection of the plant size:

 Geographical location of the plant

 Plant and production layout

 Plan for acquiring raw materials

 Proximity to the market

6.2 Plant Location

 Availability of Raw Material

Sodium Chloride, the principal raw material is obtained from Arvin International Marketing,

Inc. The raw material will be transported by land through container trucks from Pasay,

Philippines to the plant location in San Jose del Monte, Bulacan. The 98% Sulfuric acid is

obtained from Emerald Chemicals inc. located at Valenzuela City and will be also be transported

by land.

49
 Markets

The target markets would be the local producers of (ethylene dichloride) and

chloroethene (vinyl chloride), and many other compounds, as well as the industries in the nearby

countries. The pharmaceutical industry consumes hydrochloric acid as a catalyst in synthesis, for

pH control, for deionization of water and as a reduction agent (e.g., in the production of ascorbic

acid and para-aminobenzoic acid).

 Energy Availability

Meralco (Manila Electric Company) will be the source of electricity for the plant operation.

The cost of electricity for industrial purpose is PhP 7.4176 per kW-h. Generators are also

provided to sustain and permit operation during emergency power interruptions.

 Climate

Bulacan province generally has a moderate climatic condition. Its geography plays an

important role in its metrological aspect giving it two pronounces seasons which are the dry and

wet seasons. In San Jose del Monte, the wet season is overcast, the dry season is partly cloudy,

and it is hot and oppressive year round. Over the course of the year, the temperature typically

varies from 72°F to 93°F and is rarely below 68°F or above 96°F.

 Transportation Facilities

The locality of the plant from Metro Manila to City of San Jose del Monte, Bulacan was

shortened to about one hour thirty minutes to one hour forty five minutes which makes it more

accessible to the broader marketing range. The main facilities of transportation along the area are

cars, buses, jeepneys, tricycles and trucks.

50
 Water Supply

Bulacan Water District will be major source of water. A deep-well will also be installed

to supply the amount of water needed in the operation. The plant’s raw water will be used for

utility services, maintenance and cleanliness of the entire plant.

 Labor Supply

“In the 2016 census, the population of San Jose del Monte was 574,089 people, with a

density of 5,400 inhabitants per square kilometer or 14,000 inhabitants per square mile. This

makes it the largest local government unit in Bulacan province. It is also the largest city in

Central Luzon (Region III). Industrialization has lured thousands of people from other provinces

to settle within Bulacan which advocates enough labor supply around the area.” (18Ja35)

Bulacan is a favorable place for any business with a stable labor condition. The

strategically located military detachments, police stations and outpost make the province as one

of the most advantageous spot to do business in the Philippines.

 Community Factors

San Jose del Monte is the largest city in Central Luzon (Region III). It is currently

classified as one of the fastest urbanizing cities of the Philippines. San Jose del Monte gears up

activities on trade, finance, education and medical services for most part of the province. As a

center for trade and commerce, it hosts one of the largest industrial places in the country which

makes it ecologically and economically pleasing.

 Communication Services and Facilities

Among these include the government, mass media and private establishments. The

Philippine Long Distance Telephone Company (PLDT), Digitel Mobile Philippines, Bayan

Telecommunication and Globe Telecom Inc., provide landline phone services in the city.

51
Additionally, mobile phone services are presently being provided by Smart, Globe Tel. and Sun

Cellular. There are internet service providers in the city which includes the Smart

Communication Inc., PLDT Company, Innove Telecommunications (Globe), Sun Cellular,

Bayan Telecommunication, Big Sky Nation, Infinivan, and Sun Telecom. These will provide

convenience for processing business transactions and accessibility of communication for other

transactions.

 Site Characteristics

“San Jose del Monte is home of one of the biggest resettlement area in the Philippines,

Sapang Palay resettlement in 36 barangays and others like Pabahay 2000 and 40 others scattered

along the city. People living here came from former informal settlers along creeks, esteros,

riverbanks and railway tracks of Paco, Pandacan, Sta. Ana and Tondo, all in Manila, as well as

the fringes of Fort Bonifacio in Makati (now part of Taguig). Figure 7.1 and 7.2 will provide a

draft of the location of the proposed plant in San Jose del Monte City, Bulacan.” (18Ja36)

FIGURE 6.1 Map of the Site

52
FIGURE 6.2 Sapang Palay, San Jose del Monte, Bulacan

53
PLANT LAYOUT

54
CHAPTER 7

PLANT LAYOUT

7.1 Plant Layout Description

The layout of the plant shows the relationship between the storage space and operating

equipment, with consideration of the safe operational sequence. It also includes the structures

such as the administration building separated from the production building and others. The

complete layout is shown in Figure 7.1. A parking area is provided for ease of transport and

hassle-free parking. To facilitate the idea of the layout, a perspective drawing is included and is

shown in Figure 7.2.

7.2 Effect of Layout on Material Flow, Handling and Storage

Plant layout will affect the material flow, handling and storage starting from raw

materials to the product produced. The proper areas for different processes are well designated

from the processing area to the handling and storage area. Proper instrumentation and control is

also a factor to be considered to attain an efficient flow of material, handling and storage.

55
Figure 7.1 Complete Layout

Figure 7.2 Perspective Drawing

56
Figure 7.3 Perspective View

7.3 Provision for Expansion

Having been established, Hayyan Chemical Corporation may expand its ground to nearby

available area. With the continuously increasing demand of hydrochloric acid, it is projected to

be produced in annual constant rate over the succeeding years. Exports should also be strong for

the fast-growing global ethylene chloride industries. With this development, possible expansion

has to be considered. The plant layout is flexible enough to accommodate such an expansion to

be done in the future in a way that would not require too much cost on the renovation to be done

in the plant.

57
7.4 Utilities

 Electricity

Electricity is used to power the whole plant. Its major consumption will be in the

production section where the equipment are found and where lightings are needed. The following

equipment will require the use of electricity: reaction vessel, rotary dryer, rotary filter,

centrifuge, scrubber, and settling tank. Power for the plant will be supplied by Manila Electric

Company (MERALCO), costing an amount of PhP 7.4176 per kW-h.

 Water

The water requirement is minimal. It will be used in processing, maintenance and

sanitation needs within the manufacturing facility. The water consumption is estimated to be 50

gallons of deep well water per day.

 Waste Treatment Disposal

All disposal procedures are to be carried out in strict conformance to federal, state and

local regulations. Recovered liquid benzene from a spill, vessel cleaning or contaminated product

may be reprocessed, but if it cannot be reprocessed, it must be disposed of in a legally accepted

manner.

The disposal methods which conform to jurisdictional regulations include:

a) If small quantities, by removing it to safe location from buildings or other combustible

sources, pouring it in dry sand or earth and cautiously igniting it

b) If large quantities, by atomizing it in a suitable combustion chamber

c) By biodegradation since benzene is biodegradable. Diluted aqueous solutions are drained

into sewage treatment plants and decomposed there by anaerobic bacteria

58
Recovered materials are incinerated in a properly designed furnace. Since the flammable

liquid burns with a very smoky flame, it will be diluted with alcohol or acetone to minimize

smoke. Boiler fuel usage and incineration process will be the methods to be used.

59
ENVIRONMENTAL

IMPACT

ASSESSMENT AND

SAFETY

60
CHAPTER 8

ENVIRONMENTAL IMPACT ASSESSMENT AND SAFETY

8.1 Environmental Impact Assessment

The nuisance caused by the acid fumes in the neighborhood of the factory is high so that

the acid fumes has to be absorbed in a pure water to avoid the chimney gas to be discharged into

the atmosphere. The selected technology is seamless and does not have any gas emission, liquid

as well as solid wastes. Hence there is no adversative impact on surroundings.

8.2 Safety

“Hydrochloric Acid is a highly corrosive and hazardous chemical and should be handled

with extreme care. Personnel should be properly trained in the handling of hydrochloric acid and

should always wear the proper protective equipment when working around hydrochloric acid.

All users should read the Material Safety Data Sheet (MSDS) before handling hydrochloric

acid.” (18Ja37)

“Hydrochloric acid is very corrosive to the skin and mucous membranes and can cause

severe burns to any part of the body. The corneas of the eyes are especially sensitive to

hydrochloric acid and exposure to it or its vapors immediately causes severe irritation. If the eyes

are not quickly and thoroughly irrigated with water, partial or total visual impairment or

blindness can occur.” (18Ja38)

“It is recommended that employees be provided with and required to use acid impervious

clothing, gloves, boots, splash proof goggles and other appropriate protective clothing necessary

to prevent any possibility of skin contact with hydrogen chloride mists or solutions. Material

types which may be considered for this service include nitrile, neoprene, polyvinyl chloride

61
(PVC), butyl rubber, Responder®, Trellchem®, and Tychem®. Face shields should also be

provided when there is a chance of splashing liquid hydrochloric acid. Face shields can augment

protection provided by splash-proof goggles and safety glasses, but are not intended to replace

these safety appliances.” (18Ja39)

“Hydrochloric acid has excellent warning properties. Concentrations of 0.3 parts per

million (ppm) can be detected by smell, and concentrations above five parts per million will

cause discomfort.” (18Ja40)

“OSHA has established a ceiling value of five parts per million (5 ppm) for hydrochloric

acid. This means that an employee's exposure to hydrogen chloride should at no time exceed five

parts per million. Effective in 2003, the ACGIH TLV® for hydrogen chloride is a ceiling value

of 2 ppm.” (18Ja40)

Safety Precautions

“Water should always be easily accessible whenever hydrochloric acid is stored or used.

Safety showers and eye wash fountains should be located in the immediate work area and clearly

marked. These units should be tested on a regular basis. Portable or temporary systems are

available. Every precaution should be taken to ensure that a suitable system is in place and

operational before handling hydrochloric acid. Only trained and properly protected personnel

should be allowed to enter areas where hydrochloric acid is present. ANSI Standard 2358.1

contains placement and performance criteria for emergency eyewash and shower equipment.”

(18Ja41)

“Before entering tanks or opening pipelines that have contained hydrochloric acid, they

should be drained or pumped out and thoroughly flushed with water.” (18Ja41)

62
“Good housekeeping practices are important where hydrochloric acid is used. All spills

should be contained and immediately recovered or flushed with water into a chemical sewer or a

segregated holding basin which is provided for the specific purpose of neutralization.

Hydrochloric acid must never be flushed to a sanitary sewer or other outlet which connects to

waterways or uncontrolled runoff streams. Contact local and fed authorities for applicable

regulations.” (18Ja41)

63
RECOMMENDATION

AND CONCLUSION

64
CHAPTER 9

RECOMMENDATIONS AND CONCLUSIONS

Due to the potential hazards of hydrochloric acid, it is no longer used in appreciable

quantity as a solvent and has not been used as an industrial solvent for decades. However, it is

used extensively as a chemical building block for the production of many important industrial

compounds such as ethylene dichloride, chloroethene and many other compounds. The demands

for hydrochloric acid is indeed very high, this might not be true locally but very promising for

regions such as Northern America. In a cited study in the previous section, there is a substantial

differential of supply and demand in the region and will likely lead to a gradual increase in the

years to come. In general, hydrochloric acid capacities do not match global demands. The most

common feedstock for hydrochloric acid production is from sulfuric acid and salt. Thus, the

group proceeded with the said feedstock. To maximize the yield of hydrochloric acid, the group

chose to apply sequence of process steps to convert other component of the feedstock into

hydrochloric acid product. The process steps will not only recover the original amount of

hydrochloric acid in the feedstock but will also produce hydrochloric acid out of the other

components. Due to the availability of raw material (Emerald Chemicals Incorporated and Arvin

International Marketing) and utilities, San Jose del Monte, Bulacan is the optimal location for the

plant. The availability of wide land area, transportation facilities, and ease of doing business both

for local and export markets also contribute in the decision making for choosing San Jose del

Monte, Bulacan.

Given the trend of sulfuric acid and sodium chloride and hydrochloric acid price

differential, producing hydrochloric acid appeared to be an attractive venture as the commodity

is extremely important in other industries. Besides, the construction of the plant gives way to the

utilization of the downstream products and in turn, boosts the downstream industries in the
65
country. The construction of the plant provides job opportunities and improves the economy of

the locality as well. However, with extremely high cost of equipment, overall process appears to

be financially unattractive. This requires further research and development in order to make the

process more profitable. It is essential to decrease the units of equipment to use while generating

the same amount of hydrochloric acid.

66
LIST OF REFERENCES

Chemical Processing. Topic: Re: What would be the ideal material of construction for a
hydrochloric acid plant. Retrieved August 11, 2009 from https://www.chemicalprocessing.com

K.F.Knoche. Feasibility studies of chemical reactions for thermochemical water splitting cycle of
the iron-chlorine, iron-sulfur and manganese-sulfur families. Volume 2, Issue 3, 1977, Pages
269-289.

University of York Centre for Industry Education Collaboration, York, UK [Web log post].
(2016). Retrieved from http://www.essentialchemicalindustry.org/chemicals/hydrogen-
chloride.html

Japan Soda Industry Association [Web log post]. (November 20, 2006). Retrieved from
http://www.jsia.gr.jp/data/handling_02e.pdf

Transparency Market Research. Hydrochloric Acid Market - Global Industry Analysis, Size,
Share, Growth, Trends, and Forecast 2016 – 2024 [Web log post]. Retrieved from
https://www.transparencymarketresearch.com/hydrochloric-acid-market.html

Occidental Chemical Corporation [Web log post]. (February 19, 2013). Retrieved from
http://www.oxy.com/OurBusinesses/Chemicals/ResponsibleCare/Documents/Hydrochloric%20
Acid.pdf

67
APPENDICES

68
APPENDIX A

HISTORICAL AND PROJECTED DATA FOR SUPPLY AND DEMAND OF HCL

 GRAPHS

DEMAND OF HYDROGEN CHLORIDE IN THE PHILIPPINES

80,000,000.00
Quantity (kg)

60,000,000.00

40,000,000.00

20,000,000.00

-
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Year

SUPPLY OF HYDROGEN CHLORIDE IN THE PHILIPPINES


40,000,000.00
35,000,000.00
30,000,000.00
Quantity (kg)

25,000,000.00
20,000,000.00
15,000,000.00
10,000,000.00
5,000,000.00
0.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Year

PROJECTED SUPPLY OF HYDROGEN CHLORIDE IN THE PHILIPPINES

29,000,000.00
28,500,000.00
Quantity (kg)

28,000,000.00
27,500,000.00
27,000,000.00
26,500,000.00
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Year

69
PROJECTED DEMAND OF HYDROGEN CHLORIDE IN THE PHILIPPINES

70,000,000.00
60,000,000.00
Quantity(kg)

50,000,000.00
40,000,000.00
30,000,000.00
20,000,000.00
10,000,000.00
0.00
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Year

Projected Demand and Supply of Hydrochloric Acid in the Philippines

70,000,000.00
60,000,000.00 Hydrogen
50,000,000.00 Chloride
Supply
40,000,000.00
30,000,000.00
Hydrogen
20,000,000.00
Chloride
10,000,000.00 Demand
-
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Determining the Method for Projecting Demand


Comparison of Standard Deviations
Method Standard Deviation
Arithmetic Straight Line Method 3,355,688.69
Arithmetic Geometry Method 3,632,494.34
Statistical Straight Line Method 3,251,576.01
Statistical Parabolic Method 3297317.13

Projections using the Statistical Straight Line Method had the least standard deviation, thus it was
employed in determining the projected demand of the target market for HCl in Philippines.

70
Computations:

A. Arithmetic Straight Line Method


𝑌𝑐 = 𝑎 + 𝑌𝑖 − 1

𝑌𝑛 − 𝑌𝑐
𝑎=
𝑁−1
Where:

Yc = initial value (2016) Yn = final value (2020)

N = number of years Yi= value for the year past

Y = individual population

Year Y a Yi-1 Yc Y-Yc (Y-Yc)²


2007 45,846,090 - - - - -
2008 48,654,305 1,685,989.56 45,846,090 47,532,080 1,122,225 1,259,389,948,158.54
2009 41,081,028 1,685,989.56 47,532,080 49,218,069 -8,137,041 66,211,438,043,912.20
2010 52,826,180 1,685,989.56 49,218,069 50,904,059 1,922,121 3,694,550,420,055.15
2011 54,998,156 1,685,989.56 50,904,059 52,590,048 2,408,108 5,798,983,069,393.89
2012 49,077,152 1,685,989.56 52,590,048 54,276,038 -5,198,886 27,028,413,330,379.90
2013 54,570,129 1,685,989.56 54,276,038 55,962,027 -1,391,898 1,937,380,970,336.06
2014 60,230,883 1,685,989.56 55,962,027 57,648,017 2,582,866 6,671,197,347,926.35
2015 59,405,512 1,685,989.56 57,648,017 59,334,006 71,506 5,113,044,475.31
2016 61,019,996 1,685,989.56 59,334,006 61,019,996 0 0.00
Σ(Y − 𝑌𝐶 ) =
1.12606E+14

N = 10
Σ(Y−𝑌𝐶 )
Standard Deviation (𝜎): 𝜎 = √ 𝑁

1.12606E + 14
𝜎= √ = 3355688.695
10

71
Arithmetic Geometry Method
𝑌𝑖+1
𝑌𝑐 =
1+𝑟
Y_(i+1) = value for the year past

r = average rate increase


1+
Year Y % increase Yi + 1 Yc Y - Yc (Y - Yc)2
r
2007 45,846,090 - 44,812,557 1.04 43,116,219 2,729,871 7.45E+12
2008 48,654,305 6% 46,575,635 1.04 44,812,557 3,841,748 1.48E+13
-
2009 41,081,028 -16% 48,408,078 1.04 46,575,635 3.02E+13
5,494,607
2010 52,826,180 29% 50,312,615 1.04 48,408,078 4,418,102 1.95E+13
2011 54,998,156 4% 52,292,084 1.04 50,312,615 4,685,541 2.20E+13
-
2012 49,077,152 -11% 54,349,431 1.04 52,292,084 1.03E+13
3,214,932
2013 54,570,129 11% 56,487,722 1.04 54,349,431 220,698 4.87E+10
2014 60,230,883 10% 58,710,140 1.04 56,487,722 3,743,161 1.40E+13
2015 59,405,512 -1% 61,019,996 1.04 58,710,140 695,372 4.84E+11
2016 61,019,996 3% - - - - -
35% 1.19E+14
𝛴%𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒
𝑟=
𝑁−1
35%
𝑟=
10 − 1
𝑟 = 3.89%

Year Y Yc Y-Yc (Y-Yc)2


2007 45,846,090 43,116,219 2,729,871 7.45E+12
2008 48,654,305 44,812,557 3,841,748 1.48E+13
2009 41,081,028 46,575,635 -5,494,607 3.02E+13
2010 52,826,180 48,408,078 4,418,102 1.95E+13
2011 54,998,156 50,312,615 4,685,541 2.20E+13
2012 49,077,152 52,292,084 -3,214,932 1.03E+13
2013 54,570,129 54,349,431 220,698 4.87E+10
2014 60,230,883 56,487,722 3,743,161 1.40E+13
2015 59,405,512 58,710,140 695,372 4.84E+11
2016 61,019,996 - - -
72
1.19E+14
1.19E + 14
𝜎= √ = 3632494.342
10

Straight Line Method

Year Y X X² XY
2007 45,846,090 1 1 45,846,090
2008 48,654,305 2 4 97,308,610
2009 41,081,028 3 9 123,243,084
2010 52,826,180 4 16 211,304,720
2011 54,998,156 5 25 274,990,780
2012 49,077,152 6 36 294,462,912
2013 54,570,129 7 49 381,990,903
2014 60,230,883 8 64 481,847,064
2015 59,405,512 9 81 534,649,608
2016 61,019,996 10 100 610,199,960
Σ 527,709,431 55 385 3,055,843,731

Year Y a b X Yc Y-Yc (Y-Yc)2

2007 45,846,090 42,541,485.73 1,859,901.34 1 44,401,387.07 1,444,703 2,087,166,548,070.39

2008 48,654,305 42,541,485.73 1,859,901.34 2 46,261,288.41 2,393,017 5,726,528,389,863.03


49,563,877,487,496.9
2009 41,081,028 42,541,485.73 1,859,901.34 3 48,121,189.75 -7,040,162
0
2010 52,826,180 42,541,485.73 1,859,901.34 4 49,981,091.09 2,845,089 8,094,530,900,632.08

2011 54,998,156 42,541,485.73 1,859,901.34 5 51,840,992.43 3,157,164 9,967,681,805,821.72


21,378,987,952,840.4
2012 49,077,152 42,541,485.73 1,859,901.34 6 53,700,893.77 -4,623,742
0
2013 54,570,129 42,541,485.73 1,859,901.34 7 55,560,795.11 -990,666 981,419,339,701.32

2014 60,230,883 42,541,485.73 1,859,901.34 8 57,420,696.45 2,810,187 7,897,148,454,316.59

2015 59,405,512 42,541,485.73 1,859,901.34 9 59,280,597.79 124,914 15,603,560,389.86

2016 61,019,996 42,541,485.73 1,859,901.34 10 61,140,499.13 -120,503 14,521,003,682.51

Σ 105,727,465,442,815.00
Σ(Y − 𝑌𝐶 ) = = 1,669,661,499.59
10(3,055,843,731) − 55(527,709,431)
𝑏= = 1859901.339
10(55) − (152 )

527,709,431 1859901.339(55)
𝑎= − = 42541485.73
10 10
105,727,465,442,815.00
𝜎= √ = 3251576.009
10

73
Statistical Parabolic Curve

Year Y X X² x4 XY X²Y
2007 45,846,090 -9 81 6561 -412,614,810 3,713,533,290
2008 48,654,305 -7 49 2401 -340,580,135 2,384,060,945
2009 41,081,028 -5 25 625 -205,405,140 1,027,025,700
2010 52,826,180 -3 9 81 -158,478,540 475,435,620
2011 54,998,156 -1 1 1 -54,998,156 54,998,156
2012 49,077,152 1 1 1 49,077,152 49,077,152
2013 54,570,129 3 9 81 163,710,387 491,131,161
2014 60,230,883 5 25 625 301,154,415 1,505,772,075
2015 59,405,512 7 49 2401 415,838,584 2,910,870,088
2016 61,019,996 9 81 6561 549,179,964 4,942,619,676
Σ 527,709,431 0 330 19,338 306,883,721 17,554,523,863

Year a b X c X² Yc Y-Yc (Y-Yc)²


2007 52,223,628.10 929,950.67 -9 16,585.30 81 43,854,072.07 1,992,017.93 3.97E+12
2008 52,223,628.10 929,950.67 -7 16,585.30 49 45,713,973.41 2,940,331.59 8.65E+12

2009 52,223,628.10 929,950.67 -5 16,585.30 25 47,573,874.75 -6,492,846.75 4.22E+13


2010 52,223,628.10 929,950.67 -3 16,585.30 9 49,433,776.09 3,392,403.91 1.15E+13
2011 52,223,628.10 929,950.67 -1 16,585.30 1 51,293,677.43 3,704,478.57 1.37E+13

2012 52,223,628.10 929,950.67 1 16,585.30 1 53,153,578.77 -4,076,426.77 1.66E+13


2013 52,223,628.10 929,950.67 3 16,585.30 9 55,013,480.11 -443,351.11 1.97E+11
2014 52,223,628.10 929,950.67 5 16,585.30 25 56,873,381.45 3,357,501.55 1.13E+13
2015 52,223,628.10 929,950.67 7 16,585.30 49 58,733,282.79 672,229.21 4.52E+11
2016 52,223,628.10 929,950.67 9 16,585.30 81 60,593,184.13 426,811.87 1.82E+11
Σ 1.09E+14
1.09E + 14
𝜎= √ = 3297317.13
10

A. Determining the Method for Projecting Supply


Comparison of Standard Deviations
Method Standard Deviation
Arithmetic Straight Line Method 3,393,022.47
Arithmetic Geometry Method 4,287,489.90
Statistical Straight Line Method 2,815,257.05
Statistical Parabolic Method 3,328,508.97

74
1.15126E + 14
𝜎= √ = 3393022
10

1.65E + 14
𝜎= √ = 4287489
10

75
C. Statistical Straight Line Method

7.9258𝐸 + 13
𝜎= √ = 2815257.049
10

D. Statistical Parabolic Curve

76
1.11𝐸 + 14
𝜎= √ = 3328508.97
10

77
APPENDIX B

MATERIAL AND ENERGY BALANCE FOR THE PRODUCTION OF HCL

Solution:

Step 1. Doing a material balance around the scrubber.

1. For Stream 6, convert from kg/hr to m3/hr to keep units consistent. The
conversion factor below applies only to pure water.

Stream 6 = 272.16 kg/hr x m3/1000 kg


= 0.272 m3/hr

2. Set up the material balance equation and solve for Stream 3.

Input Scrubber = Output Scrubber

Stream 1 + Stream 2 = Stream 3 + Stream 6

4.54 m3/hr + 0 = y m3/hr + 0.272 m3/hr

Stream 3 = y m3/hr = 4.27 m3/hr

Step 2. Conduct a material balance around the recirculation tank. Solve for Stream 5.

Input Tank = Output Tank

Stream 3 + Stream 5 = Stream 1 + Stream 4

4.25 m3/hr + x m3/hr = 4.54 m3/hr + 0.454 m3/hr

78
Stream 5 = x m3/hr = 5 m3/hr – 4.27 m3/hr

= 0.73 m3/hr

If it is to calculate only the makeup water at 5,

Stream 5 = Stream 4 + Stream 6

= 0.454 + 0.272

= 0.73 m3/hr

Dryer heat balance

79
PARAMETER Input
Heat input from electrically heated hot air
from atmosphere at 95% efficiency of kJ/h 5624130 100 Hin
water

I Heat for liquid evaporation


(i) Heating from inlet to WBT kJ/h 105739 1.87 Heh
(ii) Vapourising at WBT kJ/h 2840573 50.28 Hlv
(iii) Heating vapours from WBT to
kJ/h 139766 2.47 Hesvp
gas outlet temperature

Dryer thermal
Sub Total I kJ/h 3086078 54.87
efficiency
II Heat for outgoing
(i) solid product form inlet to outlet kJ/h 94599 1.67 Hs
(ii) moisture in dried product from
inlet to outlet kJ/h 1745 0.03 Hmd

Heat lost in
Sub Total II kJ/h 96344 1.7
outgoing material
III Heat absorbed by dryer from gas 3395147 60.37
kJ/h Hg
flow before exhaust

IV Unaccounted loss 212725 3.78

(Hg-Subtotal I + Subtotal II) kJ/h Radiation loss HR

(due to radiation)

V Heat lost in exhaust 2228843 39.63


kJ/h Exhaust loss Hexh
[Hin – (subtotal I + subtotal II + HR)]

80
Solution:

Based on dust balance,

Mass in = Mass out

Inlet gas stream dust = outlet gas stream dust + hopper ash

1) The inlet and outlet dust quantities in kg per hour


Inlet dust quantity = 169920 (m3/hr) x 4577 (mg/m3) x 1/1000000 (kg/mg) = 777.7 kg/hr

Outlet dust quantity = 185040 (m3/hr) x 57 (mg/m3) x 1/1000000 (kg/mg) = 10.6 kg/hr

2) Quantity of ash that will be have to remove from the hopper per hour
Hopper ash = Inlet gas dust quantity – Outlet gas dust quantity

= 777.7 kg/hr - 10.6 kg/hr

= 767.1 kg/hr

81
APPENDIX C

FINANCIAL ANALYSIS COMPUTATIONS

SAMPLE COMPUTATIONS:

Total Direct Cost = 220176793.40

Total Indirect Cost = 15658925.39

Total Product Cost = Total Direct Cost + Total Indirect Cost = 220176793.4 + 15658925.39

Total Product Cost = 235835718.8

Fixed Capital Investment = 235835718.8


70 70
WC = FCI x397=235835718.8𝑥 397

Working Capital = 41583124.22

TCI = FCI + WC = 235835718.8 + 41583124.22

Total Capital Investment = 277418843.02


FCI-
year Investment Depm Depn Revenue Expenses Profit CashFlow CCF DCF DCCF
0 -87.42 277.42 -87.42 -87.42 -87.42 -87.42
- -
1 -150 277.42 -150.00 237.42 -136.36 223.7836
- -
2 -127.42 277.42 -127.42 364.84 -105.31 329.0894
- -
3 27.74 249.68 1,117.90 1044.77 57.246 57.25 307.59 43.0097 286.0798
- -
4 27.74 221.94 1,353.91 1265.34 67.282 67.28 240.31 45.9544 240.1254
- -
5 27.74 194.2 1489.31 1391.88 73.039 73.04 167.27 45.3518 194.7736
-
6 27.74 166.46 1615.06 1509.4 78.387 78.39 -88.89 44.2473 150.5263
-
7 27.74 138.72 1717.13 1604.79 82.727 82.73 -6.16 42.4521 108.0742
-
8 27.74 110.98 1707.02 1595.35 82.297 82.30 76.14 38.3923 69.68194
9 27.74 83.24 1254.12 1172.07 63.038 63.04 139.18 26.7344 -42.9475
-
10 27.74 55.5 1425.25 1332.01 70.315 70.32 209.49 27.1096 15.83786
11 27.74 27.76 1526.87 1426.98 74.637 74.64 284.13 26.1597 10.32183
12 129 27.74 0 2259.25 2111.45 105.78 234.78 518.91 74.8081 85.12994

82
Profit = (Revenue - Expenses - Depreciation)(1-.035) + Depreciation

Cash Flow = Profit + Investment


𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑏𝑙𝑒 𝐹𝐶𝐼
Payback period =𝐴𝑛𝑛𝑢𝑎𝑙 𝐴𝑓𝑡𝑒𝑟 𝑡𝑎𝑥 𝐶𝑎𝑠ℎ 𝐹𝑙𝑜𝑤

4−3 −88.89 + 167.27


=
4 − 𝑃𝐵𝑃 −88.89 + 129

Payback period = 3.4883 years

𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑏𝑙𝑒 𝐹𝐶𝐼


Discounted Payback period=𝐴𝑛𝑛𝑢𝑎𝑙 𝐴𝑓𝑡𝑒𝑟 𝑡𝑎𝑥 𝐶𝑎𝑠ℎ 𝐹𝑙𝑜𝑤

5−4 −108.074 + 150.526


=
5 − 𝐷𝑃𝐵𝑃 −108.074 + 121.78

Discounted Payback period = 4.6771 years

𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝐴𝑙𝑙 𝑃𝑜𝑠𝑖𝑡𝑖𝑣𝑒 𝐶𝑎𝑠ℎ 𝐹𝑙𝑜𝑤𝑠


Present Value Ratio=
𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑎𝑙𝑙 𝑁𝑒𝑔𝑎𝑡𝑖𝑣𝑒 𝐶𝑎𝑠ℎ 𝐹𝑙𝑜𝑤𝑠

85.12994
PVR=1+ 329.089

Present Value Ratio = 1.2587

PRV>1 therefore it implies that the project is potentially profitable!

83

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