Republic of the Philippines
Palawan State University
Puerto Princesa City, Palawan

College of Engineering, Architecture and Technology
Department of Petroleum and Mining Engineering

Feasibility Study

A partial requirement for the course PET 56 - Plant Design

Submitted by:
Schindler P. Marang

Submitted to:
Engr. Isaac Yap

Table of Contents

I. Project Name …………………………………………………………………… Pg. 1
II. Project Description ……………………………………………………………. Pg. 1
III. Project Location ………………………………………………………………. Pg. 1
IV. Marketing Aspect……………………………………………………………… Pg. 2 * Source of Raw Materials …………………………………………………... Pg. 2 * Market Study ………………………………………………………………. Pg. 2 * Sales Projection ……………………………………………………………..Pg. 3
V. Technical Aspect ……………………………………………………………….. Pg. 4 * Glass Manufacturing * Batch Mixing …………………………………………………… Pg. 4 * Batch Melting ………………………………………………...… Pg. 4 * Shaping Plate Glass …………………………………………….. Pg.4 * Process Flow Diagram………………………………………………...……. Pg. 5 * Material Balance……………………………………………………………. Pg. 6 * Composition of Glass…………………………………………………….… Pg. 6
VI. Financial Aspect ………………………………………………………………. Pg. 8 * Fixed Asset ……………………………………………………..……...…… Pg. 8 * Operating Cost * Fixed Cost …………………………………………………….... Pg. 9 * Annual Depreciation…………………………………………... Pg. 10 * Variable Cost ……………………………………………….…. Pg. 11 * Projected Income …………………………………………….... Pg. 12
VII. Organizational Chart ………………………………………………….…… Pg. 13

I. Project Name Flat Glass Processing Plant

II. Project Description A flat glass is a rigid, brittle, transparent material which is produced by fusing it mainly with silica, lime, and soda ash. It can be produced in with range of size with a thickness of 2 to 12mm. The profile envisages the establishment of a plant for the production of flat glass with a capacity of 15000 ton per annum. The profile envisages production of flat glass of thickness 3mm to 6mm in a different proportion. The product is widely applicable in a construction, particularly in building construction for doors and windows as well as furniture, show case, mirror green house mirror and like.

III. Project Location This farm is for sale which located at Brgy Bacungan, Puerto Princesa City, Palawan. 30 min drive from city center 20,000sq.m. or 2.0 hectares. The altitudes of around 300 to 500 metres, this is an ideal place for location of flat glass processing plant.

IV. Marketing Aspect

* Source of Raw Materials

The main raw materials such as Dolomite , limestone, soda ash can be obtain from existing free face mines , it available in Palawan because there are mining activity, those raw materials can be purchase to the mining company such as CBNC, CITI NIKEL,RTN etc. there are no problem for sand because almost unlimited sand quarry but because sand has contain excessive amount of iron and other impurities it will require beneficiation. * Market Study
The country's requirement of sheet glass is entirely met through import. Ethiopia imports a variety of sheet glass for use in the construction sector and furniture manufacture. The types of sheet glasses imported include cloured throughout the mass (body tinted), non-wired and wired un worked sheets of cast/rolled glass and plain clear sheet glass. The quantity and value of sheet glass imported in the past ten years is given in Table 3.1.
Table 3.1
IMPORT OF SHEET GLASS Year | Qty(TON) | 1997 | 2,162.3 | 1998 | 3,063.3 | 1999 | 3,431.9 | 2000 | 5,149.2 | 2001 | 6,792.8 | 2002 | 5,361.7 | 2003 | 8257.0 | 2004 | 10250.5 | 2005 | 6704.6 | 2006 | 11,789.7 |

As could be observed from Table 3.1 import of sheet glass in the past 10 years has shown an increasing trend. During the past 10 years the annual average growth of import was about 20%. The import level, which was 2,162.3 tones in the year 1997, has increased to a level of

5,149.2 tons and 10,250.5 tons by the year 2000 and 2004 respectively. Although the import figure declined to 6,704.6 tons by the year 2005 it did not stay long to increase to about to 11,790 tons by the year 2006. The high growth rate registered during the past eight years is mainly due to the growth of the construction sector and urbanization.
To determine the present effective demand 20 annual average growth rates, which was observed in the past ten years, is applied by taking year 2006 as a base. Accordingly, current effective demand for sheet glass is estimated at 14,148 tons. * Sales projection

The demand for sheet glass is mainly influenced by the development of the building construction sector and urbanization. The construction sector of developing economies is found to grow at faster rate than their economy in general. With a population of more than 90 million and existing conducive conditions the economy is expected to grow at an accelerated rate. The accompanying growth in-turn will accentuate the demand for sheet glass and other building materials. In order to forecast the demand for sheet glass the observed values in the past trend and the growth of the construction sector has been considered. Accordingly, import has been growing by about 20 annually in the past 10 years. Since this is found to be very high due to backlog effect it is adjusted to 10 and is considered to be a pessimistic growth rate. The forecast executed on the basis of this assumption is presented in Table 3.2

Table 3.2
PROJECTED DEMAND FOR SHEET GLASS Year | Qty(TON) | 2008 | 15,562 | 2009 | 17,119 | 2010 | 18,831 | 2011 | 20,714 | 2012 | 22,785 | 2013 | 25,064 | 2014 | 27,570 | 2015 | 30,327 | 2016 | 33,360 | 2017 | 36,696 |

V. TECHNICAL ASPECT

Glass manufacturing process

* Batch mixing
The mixture of ingredients to make up the glass (silica, Na2CO3, CaCO3 and recycled glass, together with small quantities of various other minor ingredients) are mixed in a rotary mixer to ensure an even mix of ingredients and fed into the furnace.

* Batch melting
The mixture is heated to 1500-1550oC, where the ingredients melt, various chemical reactions take place and CO2 and SO3 are evolved * Shaping plate glass
The molten glass is cooled to 1000oC in a drawing canal, and then drawn up a tower (the drawing tower) where it is pressed into the desired width and thickness, and cools to
280oC. Individual plates of glass are snapped off at the top of the tower and further cooled before being put into storage ready for sale.

PROCESS FLOW DIAGRAM

* MATERIAL BALANCE Material Balance Base on Daily Basis 15,000 Tonyear×1 year300 days×1,000kg1Ton=50,000kgday Raw Materials * COMPOSITION OF GLASS -cullet 50% of total mixture -another 50% of mixture consists of: * Sand 64% * Limestone 7% * Soda Ash 14% * Dolomite 14% * Additive 1% Balance Around Weighed, Mixer and Furnance Given the ff. condition: * A metric Ton of raw batch form only 750kg of molten glass 250kg (the fusion loss) is given off as gasses and particulate into furnance exhaust system. * 99.9% of the gasses are carbon dioxide, water vapor and other non polluting gasses. * 0.1% raw batch is discharge from the stock as air pollutant (NOx) and (Sox).

Sand=0.500.6450,000 = 16,000kg Weighed

Limestone=0.50.0750,000 Cullet=0.550,000 =1,750kg = 25,000kg Soda Ash=0.5((0.14)(50,000) Mixer = 3,500kg Dolomite=0.50.14(50,000) = 3,500kg Additives=0.50.0150,000 Carbon=0.250.9990.3(50,000) Furnance = 250kg = 3,745.25kg Vapor=0.250.9990.7(50,000) = 8,741.25kg NOx=0.250.0010.6(50,000) 37,500kg = 7.5kg Molten Glass SOx=0.250.0010.6(50,000) = 5kg

VI. FINANCIAL ASPECTS
FIXED ASSET

DESCRIPTION | ANNUAL COST Php | Land (20,000 sq. m.) | 15,000,000 | Construction of Building (7,000 sq. m.) | 25,000,000 | MACHINERIES AND EQUIPMENT | | 1.Storage and mixed preparation | | a. Storage Bins | 3,000,000 | b. Automatic Batch Dozer | 2,700,000 | c. Batch Mixer | 1,200,000 | d. Batch Feeder | 800,000 | e. Batch Distributor | 3,400,000 | f. Crusher | 1,200,000 | 2. Weight Hopper | 750,000 | 3. Melting Furnance | 5,000,000 | 4. Cooling System | 4,000,000 | 5. Finishing Line | | a.Dibiteuse and Draw Bar | 750,000 | b. Drawing Machine | 2,350,000 | c. Automatic Cutter | 2,500,000 | d. Lay Down Machine | 1,870,000 | e. Annealing Chamber | 3,700,000 | Central Control Panel | 1,150,000 | Handling Facilities | 3,200,000 | Transformer | 10,650,000 | Dump Truck (10 units) | 22,000,000 | Electrical Generator (2 units) | 4,000,000 | TOTAL | 114,220,000 |

* OPERATING COST
FIXED COST ADMINISTRATIVE EXPENSES | Position | Number of Employee | Rate | Annual Salary | Plant Manager | 1 | 60,000 | 720,000 | Secretary | 1 | 32,000 | 384,000 | Head for Finance Admin | 1 | 45,000 | 540,000 | Marketing Manager | 1 | 35,000 | 420,000 | Accountant | 1 | 30,000 | 360,000 | Cashier | 1 | 20,000 | 240,000 | Messengers/Cleaners | 3 | 7,000 | 252,000 | TOTAL | | | 2,916,000 | | PRODUCTION EXPENSES | Production Manager | 1 | 45,000 | 540,000 | Production Clerk | 1 | 35,000 | 420,000 | Process Engineer | 3 | 25,000 | 900,000 | Shift Leader | 3 | 18,000 | 648,000 | Control Room Attendant | 6 | 10,000 | 720,000 | Operator | 3 | 10,000 | 360,000 | Production Inspector | 6 | 10,000 | 720,000 | Packer | 6 | 7,500 | 540,000 | Laborer | 24 | 7,500 | 2,160,000 | TOTAL | | | 10,428,000 | | OFFICE EXPENSES | Item | Quantity | Per Unit Cost | Total Cost | Furniture | 3 | 40,000 | 120,000 | Computer | 12 | 20,000 | 240,000 | Printer (5 in 1) | 4 | 20,000 | 80,000 | Telephone | 6 | 10,000 | 60,000 | TOTAL | | | 500,000 |

ANNUAL DEPRECIATION PLANT BUILDING | -Estimated Plant Life 75 years -Cost of Building , Php25,000,000 -Residual Value= Php11,000,000 (estimated to be 10% of cost “IFRS”) -Depreciation=Cost-Residual Valueestimated life =25,000,000-25,000,0000.1075 | Php300,000 | MACHINERIES | -Estimated Life Span for Each Machines for 15 years -Total Cost of Machines = 114,220,000 -Residual Value=Php.114,220,000 x 5% of cost" IFRS" -Depreciation=Cost-Residual Value÷Estimated Life = 114,220,000-114,220,0000.0515 Vsteual tion=--00,=al Machines= 114,000,000ated to be 10 | Php7,233,933 | VEHICLES | -Estimated Vehicle Life = 20 -Total Cost of Vehicles = 22,000,000 -Residual Value=Php22,000,000(5% of Cost of "IFRS”) -Depreciation=(Cost-Residual Value)/(Estimated Life) =22,000,000-22,000,0000.0520 | Php1,045,000 | TOTAL | Php8,578,933 | VARIABLE COST Description | Consumption | Annual Cost Php | Power | 5500 MWH per year @ rate of Php3.20 per KWH | 17,600,000 | Furnance Oil | 28,000L @ rate of Php65.00/Liter | 1,820,000 | Oil for Vehicles | 20L Consumed per truck a day 10 truck operate everyday @ rate 65/Liter | 3,900,000 | Water -20 cu. m. of water use far washing cullet and finished glass -10 cu. m. water use for batch process -15 cu. m. for personnel and other plant uses | 45 cu. m. per day @ rate of Php30.20/cu. m. | 407,700 | Plant Machinery Maintenance | Estimated to be around 1.5% of the cost of machine at Php114,220,000 | 1,713,300 | Raw Materials -soda ash -limestone -dolomite -sand -cullet and additive | 1312.5 Ton @ Php6,600/Ton 656.25 Ton @ Php3,696/Ton 1312.5 Ton @ Php4,400/Ton 6,000 Ton @ Php2640/Ton 9375 Ton @ Php8,800/Ton | 8,662,500 2,425,500 5,775,000 15,840,00 82,500,00 | Barge -for shipment of raw materials | | 2,000,000 | TOTAL | | 142,644,000 |

PROJECTED INCOME Total Investment | Total Investment=Fixed Asset+Administrative Expenses+Production Expenses+Office Expenses+Variable Cost =114,220,000+2,916,000+10,344,000+500,000+142,644,000 | Php270,624,000 | Selling Price | Selling Price=Total Investment÷Total Production =270,624,000÷15,000 | Php18,100 | Annual Production Cost | Annual Production Cost=production expenses+variable Cost =10,344,000+142,644,000 | Php152,988,000 | Annual Income | Annual Income=Total Tons Sold,Estimated 90% of Total Tons Produce×Selling Price =10,100×0.90×15,000 | Php244,350,000 | Gross Before Taxes | Gross Before Taxes=Annual Income-Annual Production Cost =244,350,000-152,988,000 | Php91,362,000 | Taxes | Taxes=12% of annual Income =0.12(91,362,000) | Php10,963,440 | Net Income | Net Income=Gross ProfitBefore Taxes-Taxes+Administrative Expenses+Office Expenses+Depreciation =91,362,000-(10,963,440+2,916,000+500,000+8,578,933) | Php68,403,627 | Return of Investment | Return Of Investment= Net Income÷Total Investment100% =68,403,627270,624,000(100%) | The ROI Indicates that the returns of investment is 25.3% for the first year |