A project study on the production of turpentine

• Main Author: Sangalang, Leonardo Paras
• Format: text
• Language: English
• Published: Animo Repository 1967
• Subjects: Turpentine; Mechanical Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_honors/36
• Institution: De La Salle University

The proposed plant can produce an annual output of 235,200 kg of turpentine and 780,000 kg of resin. Raw materials include gum exudates from pine trees (crude gum), oxalic acid and filter aid. Crude gum can be extracted or tapped from the pine trees of Mountain Province while the rest can be easily procured locally. This project would require an investment of P2,157,146.40 with a working capital of P333,186.40. Sale of products is estimated at 100% for turpentine and 80% for resin considering the projected market locally. Selling prices are to be P2.50/kg for turpentine and P0.85/kg for resin as compared to present local prices of P2.64/kg and P0.924/kg, respectively. The ratio of net profit after taxes to the total investment is 18.2% (i.e., rate of return) with a pay-out time of 3.96 years. The Cluster Process (Gum Cleaning and the New Continuous Distillation Method) will be employed in the plant inasmuch as it is both a practical and highly-controlled operation. The place of operation is within the raw material reserve at a forest concession in the town of Tuba, Mountain Province. Power and water supply would be shouldered by the proposed plant in the form of a private power plant and a water treatment system installed on the plant site. The water will be pumped from a river, Pugo River, which is cutting through the concession area. Equipment purchase would be made both locally and from abroad with minor equipment given priority in local dealers. Initial plant capacity would be at 100% inasmuch as, with this output capacity, only 10% of the tupentine projected market would be supplied. Such an abnormal situation is basically caused by the scarcity of the fundamental raw materials. However, included in this project is a natural resource cultivation program intended at increasing the gum output of the concession pine trees annually. Distribution will be done through a Manila office from where orders would be relayed to the Tuba plant for delivery. Scheduling of delivery is to be adjusted to the local demand with a maximum storage of the products of sixty days at the main plant.