A project study on the manufacture of polyvinyl chloride

• Main Author: Go, George T.
• Format: text
• Language: English
• Published: Animo Repository 1970
• Subjects: Polyvinyl chloride > Philippines; Polyvinyl chloride industry > Philippines; Chemical Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_honors/37
• Institution: De La Salle University

This project study was made to determine the feasibility of putting up a polyvinyl chloride plant since there is an upward trend in the demand of PVC resin due to the substantial increase in the number of polyvinyl chloride processing firms. From the market survey, it can be noticed that there is indeed a great demand for PVC resin. The projected demand using the straight line method is approximately 28,500 MT by 1972. The plant capacity is estimated to be 70% of the projected demand or 20,000 MT of PVC resin per year, due to certain factors as stated in the market survey. The most suitable process to be used is the carbide-acetylene-HCl process since most of the raw materials needed are locally available and the process has less by-products. The estimated investment is also considerably less than those of other processes. The most suitable plant site chosen for this project would be somewhere around the vicinity of International Chemical Industries, along the National Road in Guiguinto, Bulacan. This is based mainly on the factors of market, transportation and availability of raw materials. The total initial investment would be P31,116,083.00 which consists of P24,171,257.00 for the total installed equipment cost and P4,472,700.00 for the working capital while the balance is needed for pre-operating expenses. The project is deemed economically feasible from the various computed schedule ratios: Profit rate as % of sales = 20%, Capitalized Earning Rate = 19%, Capitalized Payout Time = 4.8 years, Discounted Cash Flow = 23.5%. These values are reasonable for such a venture since it is not a new product and its market is quite stable. The annual income (net) is P6,000,000.00 assuming a sales of 20,000 MT per year at a selling price of P1500/MT, The break even point of the plant is 7500 MT/year and the plant will operate at a capacity of 20,000 MT which is 268% of the break even capacity.