A feasibility study on the manufacture of polyvinyl chloride

• Main Author: Catala, Miguel
• Format: text
• Language: English
• Published: Animo Repository 1972
• Subjects: Polyvinyl chloride industry; Manufacturing
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/148
• Institution: De La Salle University

The proposed plant will produce polyvinyl chloride resin from vinyl chloride monomer by the suspension polymerization process. Its rated capacity of 20,000 metric tons annually will hopefully satisfy the ever growing gap of about 20,000 between local production and demand by 1975. The market is expanding at an annual rate of 27 percent as calculated from the demand projections. This plant will be located in Rosario, Cavite and will be the second polyvinyl chloride plant in the country. Vinyl chloride monomer, the main raw material will be initially imported until such time that the Philippines will be able to establish its own petro-chemical complex. The total capital requirement is approximately P25.5 million of which P8 million is paid-in capital. Of the remaining P17.5 million, P14 million will be obtained from long-term loans and the balance of P3.5 million from short-term loans. Its annual profit averages P3.7 million increasing to P5 million on the sixth year from a low P1 million on the first year of operations. The discounted cash flow rate of return on total assets is 20 percent and that on paid-in capital is 40 percent. From the accompanying project study, it may be concluded that this proposed venture is feasible and profitable.