aims to be the primary ethylene glycol manufacturer and supplier by producing high quality products and establishing strong connection in both local and international markets Company Vision Philippine Ethylene glycol Corporation (PEC) envisions itself to become the leading ethylene glycol manufacturer and supplier in the Philippines; providing ethylene glycol in accordance to the standard conforming to the demand of this intermediateproduct.
INCORPORATORS AND OFFICERS Activities during the pre-operating period: To conduct feasibility study or marketing plan, Establishing the by-laws and required forms of incorporation, Financing or seeking sources of capital Hiring and training of personnel Setting up and choosing potential plant location Finalizing the plant layout design and its construction The equipment design and specification, equipment installation And the ordering and delivery of equipment and raw materials.
The plant will operate 360 days a year, 24 hours a day and seven days a week. Once every year during the month of December is allotted for the plant shutdown, which includes equipment maintenance and repair. The employees are required to follow the work schedule. Work will start from seven oclock in the morning (7:00 AM-3:00 PM). The second shift will start from 3:00 PM to 11:00 PM. Evening shift will start from 11:00PM to 7:00 AM. ENVIRONMENTAL CONSTRAINTS Ethylene glycol is made up hydrogen, oxygen and carbon molecules. When exposed to oxygen with the presence of bacteria, ethylene glycol biodegrades into carbon dioxide and water. Studies have shown that ethylene glycol is not persistent in water and biodegrades aerobically and anaerobically. In air, ethylene glycol is not readily volatile and undergoes photochemical oxidation; ethylene glycol atmospheric half-life as approximately one day. Ethylene glycol can be disposed off and treated in conventional waste water treatment plants.
ECONOMIC CONSTRAINTS In the production of ethylene glycol, it requires large amount of water and electricity to meet the needed performance of each equipment. With this, the supplies are made sure to be in allowable quantities with standby support like generators in case of energy failure and storage tanks to store more water. The plant site was also located in a special economic zone area in Mabalacat Pampanga where enough water supply is provided.
HEALTH AND SAFETY CONSTRAINTS While ethylene oxide as the raw material is very toxic, fatal if inhaled, may cause respiratory irritation, drowsiness and dizziness, corrosive, causes severe skin burns and eye damage,cancer and may damage fertility and cause genetic defects. The risk of accidental exposure to these chemicalsshould be controlled by selecting and applying the appropriate Risk Management Measures.Safety measures are also implemented to the work place. Posters and instructions are posted to the working areas. MSDS and first aid measures for these are provided.The companyalso trains every personnel as part of the companys effective risk management program to avoid any incidents that may occur in the production site.
MANUFACTURABILITY AND SUSTAINABILITY CONSTRAINTS Access to an adequate supply of parts and raw materials has to be considered also. A business that is able to supply appropriate quantities of goods and services to customers 'just in time' also needs to have access to supplies and materials 'just in time'. To make this possible the company maintains its good relationship with its suppliers of raw materials and its target clients. And in order to access supplies just in time, plant cite was located to a special economic zone area inMabalacat, Pampanga which are near to coastal port areas since the raw materials are to be imported in nearest possible suppliers from nearby countries like China and Singapore, this is to lower the cost of transportation and delivery charge of the said raw materials. ETHICAL AND PROFESSIONAL CONSTRAINTS The company follows the standards and rules set by the Department of Labor and Employment in the protection of labor in the promotion of full employment and in the assurance of equal opportunities regardless of race, gender and beliefs. The employees and laborers will be treated fairly and equally and their voice will be heard. The company will have an Employee of the Month, to recognize their valuable contribution to the company and to motivate every employee to contribute to the achievement of company visions. The company will apply for ISO 9001:2008 certifications to assure the clients and business partners that the company increases its effectiveness and efficiency through continual improvement in systems and products/ service quality. Through this certification also, the company will able to prove that it is a customer-focused organization.
Four Mathematical Methods Description Arithmetic Straight Line Method(ASLM) Arithmetic Straight Line Method (ASLM) assumes that the annual increase in the future will be the same although the rate or increase in percent will keep on going down. Arithmetic Geometric Curve Method(AGCM) In this method, the rate of increase in the projected values is constant; however, the amount of change keeps on increasing. Statistical Straight Line Method (SSLM) For this method, the change in the figure is uniform, while the change as a % of the data for the year is decreasing. Statistical Parabolic Curve Method (SPPM) In SPPM, the change in the predicted values may be increasing or decreasing while the percentage change of the values for the prior year may also be increasing or decreasing.
Historical Demand for Ethylene Glycol Year Net Weight (kg) 2004 9989351 2005 15207516 2006 14461181 2007 17580530 2008 18073862 2009 20305136 2010 23812732 2011 25812732 2012 30557942 2013 34461181 Historical supply for Ethylene Glycol Year Net Weight (kg) 2004 3884723 2005 3945672 2006 4831932 2007 7580530 2008 9073863 2009 11305136 2010 14897363 2011 15449435 2012 19586636 2013 22869352 Graphical representation of the historical demand of Ethylene Glycol [national statistics office (NSO) public reference unit, 2014] 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 N e t
W e i g h t
i n
( k g )
Year
Graphical Representation of the Historical Supply of Ethylene Glycol [Securities and Exchange Commission, Public Reference Unit, 2014] 0 5000000 10000000 15000000 20000000 25000000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 N e t
W e i g h t
( k g )
Year
Graphical Representation of the Behavior of the Historical Demand and Supply of Ethylene Glycol 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 40000000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 N e t
W e i g h t
( k g )
Year Supply Demand Historical Demand for Ethylene Oxide
HISTORICAL SUPPLY FOR AMMONIA Year Weight (kg) 2004 86674594 2005 96499574 2006 106841656 2007 117728060 2008 119187430 2009 121249928 2010 133947292 2011 137312940 2012 145335740 2013 153966680 Graphical Representation of the Demand of Ethylene Oxide [National Statistics Office (NSO) Public Reference Unit, 2014]
0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 N e t
W e i g h t
( k g )
Year Projected Demand and Supply of Ethylene Glycol for the Next Ten Years Using Statistical Parabolic Projection Method and Statistical Straight Line Method
Year Demand (kg) Supply(kg) Difference(kg) 2014 37,894,420.62 26,459,556.07 11,434,864.55 2015 42,181,500.70 30,370,482.59 11,811,018.11 2016 46,773,614.25 34,572,000.20 12,201,614.05 2017 51,670,761.27 39,064,108.90 12,606,652.37 2018 56,872,941.74 43,846,808.70 13,026,133.04 2019 62,380,155.68 48,920,099.58 13,460,056.10 2020 68,192,403.08 54,283,981.56 13,908,421.52 2021 74,309,683.94 59,938,454.62 14,371,229.32 2022 80,731,998.26 65,883,518.78 14,848,479.48 2023 87,459,346.04 72,119,174.03 15,340,172.01 Graphical Representation of the Projected Demand and Supply of Ethylene Glycol 0.00 10,000,000.00 20,000,000.00 30,000,000.00 40,000,000.00 50,000,000.00 60,000,000.00 70,000,000.00 80,000,000.00 90,000,000.00 100,000,000.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 N e t
W e i g h t
( k g )
Year Demand Supply Projected Demand and Supply of Ethylene Oxide for the Next Ten Years Using Statistical Parabolic Projection Method Year Demand (kg) Supply(kg) 2014 110795095 121360878 2015 119243683 130177791 2016 127879141 139150392 2017 136701467 148278680 2018 145710662 157562656 2019 154906727 167002320 2020 164289660 176597671 2021 173859462 186348711 2022 183616134 196255438 2023 193559674 206317853 Graphical Representation of the Projected Demand and Supply of Ethylene Glycol 0 50000000 100000000 150000000 200000000 250000000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 N e t
W e i g h t
( k g )
Year Demand Supply 13-Nov-13 17-Feb-14 24-May-14 28-Aug-14 2-Dec-14 8-Mar-15 12-Jun-15 16-Sep-15 21-Dec-15 26-Mar-16 30-Jun-16 4-Oct-16 8-Jan-17 Feasibility Study and Project Planning Incorporation Financial Acquisition Plant Site Negotiation Plant Size Acquisition Preparation of Engineering Design and Specification Plant Construction Bidding Plant Construction Order and Fabrication of Equipment Equipment Arrival Hiring of Personnel Installation of Equipment Order and Delivery of Raw Materials Training of Personnel Trial Run Advertising and Promotion Start of Normal Operation Feasibility Study and Project Planning Incorporation Financial Acquisition Plant Site Negotiation Plant Size Acquisition Preparation of Engineering Design and Specification Plant Construction Bidding Plant Construction Order and Fabrication of Equipment Equipment Arrival Hiring of Personnel Installation of Equipment Order and Delivery of Raw Materials Training of Personnel Trial Run Advertising and Promotion Start of Normal Operation Start Date 13-Nov-13 4-Mar-14 4-Mar-14 7-Apr-14 9-Jun-14 5-May-14 5-May-14 15-Aug-14 5-May-14 5-Jan-15 5-Oct-14 5-Jan-15 4-Jun-15 8-Jun-15 7-Sep-15 7-Sep-15 6-Mar-16 Duration 111 62 153 63 56 91 31 115 308 120 243 150 95 91 181 181 365 Process 1 Manufacturing acrylonitrile by combining propylene, ammonia, and air in a process called ammoxidation. During ammoxidation, propylene, ammonia and air are fed through a catalyst at a high temperature. The vessel containing the chemical reaction is called a fluid bed reactor, where the powdered catalyst moves fluid-like throughout the reactor. Process 2 Manufacture of Acrylonitrile from Ethylene Cyanohydrin Germany and the United States first produced acrylonitrile on an industrial scale in the early 1940s. These processes were based on the catalytic dehydration of ethylene cyanohydrin. Ethylene cyanohydrin was produced from ethylene oxide and aqueous hydrocyanic acid at 60 C in the presence of a basic catalyst. The intermediate was then dehydrated in the liquid phase at 200 C in the presence of magnesium carbonate and alkaline or alkaline earth salts of formic acid. Process 2 Manufacture of Acrylonitrile from Ethylene Cyanohydrin Process 3 Manufacturing of Acrylonitrile from Acetylene and Hydrocyanic Acid Catalyst consisting of cuprous chloride and ammonium chloride in solution in hydrochloric acid. A large excess of acetylene is used (6 to 15 mol/mol HCN) at a pressure slightly above 0.1106 pa absolute and a temperature of 80 to 90C. The molar yield is up to 90 per cent in relation to hydrogen cyanide, and 75 to 80 per cent in relation to acetylene. The main by-products are acetaldehyde, vinyl acetylene, divinyl acetylene, vinyl chloride, cyano butene, lacto-nitrile, methyl vinyl ketone, etc.
Manufacturing of Acrylonitrile from Acetylene and Hydrocyanic Acid
Areas of Concern Process 1: SOHIO Process (Manufacture of Acrylonitrile by Ammoxidation of Propylene)
Process 2: Manufacture of Acrylonitrile from Ethylene Cyanohydrin
Process 3: Manufacture of Acrylonitrile from Acetylene and HCN (Hydrocyanic acid) R A W
M A T E R I A
L S
Propylene, Ammonia, Air Catalyst: Bismuth Molybdate
Ethylene Cyanohydrin Catalyst: Sodium Formate
Acetylene, Hydrocyanic Acid Catalyst: Cuprous Salt
N O.
O F
E Q U I P M E
N T
10
9
9
A D V A N T A G E S
Single step Process Maximum Yield Less Expensive Useful by- products
Assures high yields of acrylonitrile Few Impurities
Good reaction yield
D I S A D V A N T A G E
It hasnt been used in the manufacturing industry since SOHIO Process Expensive Raw Materials Large number of by-products are formed by hydration More catalyst replacement due to lost of catalyt activity HCN is extremely toxic Build up of ammonium chloride and tars
BY-
Hydrogen Cyanide, Acetonitrile, Carbon Oxides Acetaldehyde, Vinyl Acetylene, Divinyl Acetylene, Vinyl Chloride, Cyano Butene A V A I L A B I L I T Y
O F
R A W
M A T E R I A L S
The supply of propylene from different companies for the last ten years to the different countries in the world indicates that there is a sufficient supply of propylene and ammonia which can be used in the manufacturing process. (United Nations Commodity Trade Statistics Database (UNCOMTRADE), 2014) Imports: of ethylene oxide are relatively small, with amounts increasing from 1982 to 1984 from 4,300 kkg to 5,600 kkg. Exports: of ethylene oxide increased substantially over the same period, from 1,500 kkg in 1982 to 11,200 kkg in 1984 (SRI 1984).
Nevertheless, 2002: 1,670 million pounds; 2003: 1,700 million pounds; 2007: 1,870 million pounds, projected. There is no apparent foreign trade in HCN. (http://www.icis.com/re sources/news/2005/12/ 14/642136/chemical- profile-hydrogen- cyanide-hcn-/)
C O S T
O F
E Q U I P M E
N T
U.S $4000000 (Loh, 2002)
U.S $3000000 (Loh, 2002)
U.S $3000000 (Loh, 2002)
P R I C E S
O F
R A W
M A T E R I A L S
AMMONIA low $101 per ton, same basis. Current $292$298 per ton, same basis. PROPYLENE PP was at 63-65 cents/lb ($1,389- 1,433/tonne), (http://www.icis.com /resources/news/20 05/12/14/642136/ch emical-profile- hydrogen-cyanide- hcn-/)
Cracker rate cuts helped prices to stay above $1,100/tonne (848/tonne) CFR (cost & freight) NE Asia (Northeast Asia) in December. $1,130- 1,180/tonne CFR NE ACETYLENE Historical (1998-2003): High, 83, average transfer price for chemical use; low, 63, same basis. Current: 64, same basis. HYDROCYANIC ACID Historical (1998-2004): High, $0.60,. (http://www.icis.com/re sources/news/2005/12/ 14/642136/chemical- profile-hydrogen- cyanide-hcn-/)
P ERCEN
TAGE
Y I ELD
98%-2% (Kirk Othmer, 2001)
82% (Davis, 1948)
75-25% (Anderson, 1958)
P R O C E S S
U S A G E
Today over 90% of the approximately 4,000,000 metric tons produced worldwide each year use the Sohio - developed ammoxidation process. (Ullman, 2002)
At one time, ethylene oxide was used in the production of acrylonitrile, but that process was discontinued in 1966 (EPA 1984a, 1985a; NIOSH 1981; SRC 1982; SRI 1984; WHO 1985). Chemicals once produced from acetylene by processes now considered outdated include: vinyl chloride, acetaldehyde, acrylonitrile. While HCN is a very toxic chemical which makes it a draw back in process selection in the industry (Kent, 2007) Transportation facilities available- Transportation access to wider markets adds to economic scale in production, distribution, and consumption, therefore transportation increasing economic growth. Accessibility to the target market- Accessibility to the target markets affects the cost of the product and it requires a lot of time for distribution. Water source quality and quantity- Numerous plant uses large amount of water in operating plant and some operations that needed the supply of water. Special business incentives-Incentives create a good relation to the manufacturer and the consumers Climatic conditions-Climate affects the operation of the plant, the production, the transportation of the raw material and the products.
Utilities costs and availability-Plant operations are dependent to the fuel and electricity; therefore utilities should take into consideration Treatment facility- The location of the plant should have a correct waste disposal and treatment facility because it is one of the requirements by the law. Construction cost- Cost of the construction includes the equipment, the construction of the plant, and the land. Operating labour- It will determine the number of manpower that is being needed in the operation of the plant. Taxes- Taxes will affect the business in one way or other Living conditions and expansion possibilities- The chosen location must be economic zone and have large area for future expansion and development considering the projected business growth
TIPCO Estates corporation (TECO) Special Economic Zone, Mabalacat, Pampanga, Philippines
Light Industry & Science Park III (LISP III)
The First Cavite Industrial Estate (FCIE) situated in Lankaan, Dasmarinas In Cavite.
Criteria
%
(TECO) Pampanga
(LISP) Batangas
(FCIE) Cavite
Transportation Facilities
10
8
7
6 Accessibility to Target Markets
10
8
7
7 Water source quality and quantity
10
8
8
7 Special Business Incentives 10
9
9
9 Climatic Conditions
10
8
6
6 Utilities Costs And Availability
10
7
7
7 Treatment Facility 10
7
7
6 Construction Cost 5
5
5
5 Operating Labour 10
8
8
8 Taxes 5
4
4
4 Living conditions/expansion possibilities
10
9
8
6
Total
100
81
76
71 Formula C2H6O2 IUPAC ID Ethane-1,2-dio Molecular Weight g/mol 62.07 Boiling point at 101.3 kPa 197.60 C Freezing point -13.00 C Density at 20C 1.1135 g/cm3 Heat of vaporization at 101.3 kPa 52.24 kJ/mol Heat of combustion 19.07 MJ/kg Critical temperature 372 C Critical pressure 6515.73 kPa Critical volume 0.186 L/mol Flash point 111 C Ignition temperature 410 C Lower explosive limit 3.20 vol% Upper explosive limit 53 vol% Viscosity at 20 C 19.83 mPa.s Cubic expansion coefficient at 20 C 0.6210-3 K-1 Ethylene Glycol = 5872.748 kg Water = 15675.2 kg Higher Glycol = 102.4544 kg Ethylene Oxide = 86.7927
Ethylene Oxide = 4252.844 kg Water = 17397.56 kg
Components Mass In Mass out Ethylene Oxide 4339.6367 86.7927 Water 17397.56 15675.2 EG 5872.748 Higher Glycol 102.4544 Total 21650.41 21650.41 Assumptions: 1. No accumulation 2. Selectivity is 98% 3. Percent excess water is 20% 4. Ratio of water to Ethylene Oxide 9.8:1 5. 98% C 2 H 4 O + H 2 O C 2 H 6 O 2
C 2 H 4 O + C 2 H 6 O 2 C 4 H 10 O 3
Reactions Involved: 1. Accumulation equals 0.01% 2. Consider the water content of glycol is reduced from 72.4 % to 65.56%. Feed Mass(kg) EO 86.7927 Water 15675.2 MEG 5872.748 DEG 102.4544 Total 21737.1951 Components Mass(kg) Water 11210.73748 MEG 5787.090725 DEG 102.444203 Total 17100.27241 Components Mass(kg) EO 86.784 Water 4462.895 EG 85.07 Total 4634.729 Calculation: F = V + L+ Accumulation F = V + L +0.0001(F) 21737.1951= 4634.729+ 17100.27241+ 0.0001(21737.1951)
2.2 EQUIPMENT: TRIPLE EFFECT EVAPORATOR
SECOND EFFECT
Components Mass(kg) Water 4462.895 MEG 85.07 total 4547.945 Feed Components Mass(kg) Water 11210.73748 MEG 5787.090725 HG 102.444203 Total 17100.27241 Components Mass(kg) Water 6746.7214 MEG 5701.4420 HG 102.43396 total 12550.59736 1. Accumulation equals 0.01% 2. Consider the water content of glycol is reduced from 65.56% to 53.756%.
Calculation: F = V + L+ Accumulation F = V + L +0.0001(F) 17100.27241= 4547.945+ 12550.59736+ 0.0001(17100.27241) 17100.27241= 17100.27241 2. 3 EQUIPMENT: TRIPLE EFFECT EVAPORATOR
THIRD EFFECT
Components Mass(kg) Water 6746.7214 MEG 5701.4420 HG 102.43396 total 12550.597 Components mass(kg) Water 2283.626 MEG 5615.807 HG 102.4237 total 8001.856 Components mass(kg) Water 4462.895 MEG 85.07 Total 4547.945 1. Accumulation equals 0.01% 2. Consider the water content of glycol is reduced f rom 53. 756% to 28.5%.
Calculation: F = V + L+ Accumulation F = V + L +0.0001(F) 12550.597= 4547.945+ 8001.856 + 0.0001(12550.597) 12550.597= 12550.597 Suppose MEG is concentrated from 27.125 % to 70.18 % in this triple effect long tube vertical falling film evaporator. Components Mass %Mass Water 15675.2 72.401 Ethylene Glycol 5872.748 27.125 Di-ethylene Glycol 102.4544 0.4732 Total 21650.41 100 Components Mass %Mass Water 2283.626 28.5387 Ethylene Glycol 5615.807 70.1813 Di-ethylene Glycol 102.4237 1.2799 Total 8001.856 100 Material Entering the Evaporator Material Leaving the Evaporator (Bottom Product Concentrate)
Bottom Mass(kg) MEG 5568.645239 DEG 102.4134733 total 5671.058712 Feed Mass(kg) Water 2283.626 MEG 5615.807 HG 102.4237 Total 8001.856 Components Mass(kg) Water 2283.397599 MEG 46.599951 Total 2329.99755 Data and Assumptions: 1. Accumulation equals 0.01% Components Mass(kg) Calculation: F = D + B+ Accumulation F = D + B +0.0001(F) 8001.856= 2329.99755+5671.0587+ 0.0001(8001.856) Data and Assumptions: 1. Accumulation equals 0.01% 2. 99.8% purity of ethylene glycol is drawn out in the distillate.
feed mass(kg) MEG 5568.645239 HG 102.4134733 total 5671.058712 Distillate Mass(kg) MEG 5506.904 HG 11.03588 total 5517.94 Bottom Components Mass(kg) MEG 61.18413 HG 91.36735 Total 152.5515 Calculation: F = D + B+ Accumulation F = D + B +0.0001(F) 5671.0587= 5517.94+152.5515+ 0.0001(5671.0587) 5671.0587= 5671.0587 1. Accumulation equals 0.01% 2. 99.9% purity of water is drawn out in the distillate. Feed mass EO 86.784 MEG 301.81 water 15671.77 total 16060.364 Distillate mass(kg) EO 86.7753 water 15174.57 MEG 9.58415 total 15270.915 Bottom mass(kg) MEG 292.1956 water 495.64 total 787.8357 Calculation: F = D + B+ Accumulation F = D + B +0.0001(F) 16060.364= 15270.915+787.8357 + 0.0001(16060.364) 16060.364= 16060.364
TABLE OF STANDARDS
Code Description Usage
Batas Pambansa Bilang 68
Corporation Code of the Philippines
Articles of Incorporation
Republic Act No. 8749
Philippine Clean Air Act of 1999
Waste Disposal
Republic Act No. 9275
Philippine Clean Water Act of 2004
Waste Disposal
Presidential Decree No. 984
Pollution Control Law of 1976
Waste Disposal
DENR Administrative Order No. 90-35
Revised Effluent Regulations of 1990
Waste Disposal
Presidential Decree No. 856
Sanitation Code of the Philippines
Waste Disposal
Presidential Decree No. 442
The Labor Code of the Philippines
Management Study
OSHA
Occupational Safety and Health Administration
Health and Safety
NIOSH
National Institute of Occupational Safety and Health
Health and Safety Presidential No. 442 Labor Code of the Philippines Management Studys Company Policies