AgriWaste Paper Industry MAPUA INSTITUTE OF TECHNOLOGY School of Chemical Engineering and Chemistry MANUFACTURE OF BOND PAPER FROM CORN STOVER A Design Proposal Submitted in Partial Fulfillment of the Requirements for the Degree of Science in Chemical Engineering De Guzman, Andrea Mella B. Esperanza, Jailene O. Lomat, Rouselle Jade J. Rescober, Elbenson P. September 22, 2005 1 AgriWaste Paper Industry ACKNOWLEDGEMENT We would like to acknowledge and express our greatest indebt ness and gratitude to the following people, whose without their support, this paper would have not been accomplished. To Engr. Winston Flora for entertaining our questions during consultations and for supervising us throughout the accomplishment of this paper. To all our families, for being our strength at times when we want to give up and for being our inspirations to strive for the best. To all our friends and classmates who have been very kind in lending some of their references material. To Manny and Winnie who have been very supportive and helpful to complete this paper. And most especially to the Lord Almighty for giving us the guidance and wisdom. To all of you, we give our sincerest gratitude and love. Andrea, Jailene, Jade, Elben 2 AgriWaste Paper Industry Table of Contents i ii INTRODUCTION History of Pulp and Paper Manufacturing in the Philippines The Paper Industry Future Paper- Uses and Applications The Corn Production The Corn Plant and its Type ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... 1 2 3 3 4 4 5 EXECUTIVE SUMMARY Name of the Company Logo of the Company Vision Mission Objectives of the Project Statement of the Project SWOT Analysis ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... 7 7 7 7 7 8 8 9 MARKET STUDY Product Description Bond Paper Name of the Product Properties of the Product Uses of the Product Major Users of the Product Product Distribution Areas of Dispersion Selling Price Analysis Price of the Product Target Market Historical and Projected Demand Analysis of Projected Demand Market Share Factors Affecting the Market Marketing Plans and Programs Marketing Strategies Means of Transportation ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... 10 10 10 10 10 11 11 11 12 12 13 13 13 15 15 17 18 18 19 TECHNICAL STUDY Description of Raw Materials Properties, Collection and Storage of Corn Stovers ……………………………………………………………... ……………………………………………………………... 20 20 20 Letter of transmittal Acknowledgement ……………………………………………………………... 3 AgriWaste Paper Industry ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... 21 24 28 31 33 34 39 40 41 49 50 54 ORGANIZATIONAL AND FINANCIAL STUDY Organizational Chart Job Description Policies, Rules and Procedures Organizational Chart ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... 55 56 62 63 FINANCIAL STUDY ……………………………………………………………... 63 ENVIRONMENTAL STUDY Wastewater Treatment Plant Environmental Impact Assessment Environmental Policy Material Safety Data Sheet (MSDS) Of Bond Paper Recommendation ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... ……………………………………………………………... 94 94 96 103 104 Chemical Requirements Manufacturing Process Stock Preparation Material Balance Major Assumptions Overall Material Balance Assumptions Detailed Material Balance Energy Balance Process Flowchart Equipment Specifications Equipment Layout Plant Description Equipment Optimization ……………………………………………………………... ……………………………………………………………... 106 Appendices LIST OF TABLES AND GRAPHS ………………………………………… ………………………………………… ………………………………………… ………………………………………… ………………………………………… ………………………………………… ………………………………………… …………………………………………. Table 2.1 : Properties of Bond Paper Table 2.2 : Price List of Some Market Competitors Table 2.3 : Market Share Projection Table 3.1 : Non-wood Plant Fiber Characteristics Table 4.1 : Equipment Specifications Table 4.2 : Equipment Optimization Table 6.1 : Pre-operating Expense 4 10 12 16 21 21 41 5 63 AgriWaste Paper Industry …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. …………………………………………. ………………………………………..... …………………………………………. Table 6.2 : Pre-operating Salaries Table 6.3 : Interim Interest Expense Table 6.4 : Land and Building Cost Table 6.5 : Taxes and Licenses Table 6.6 : Office & Laboratory Supplies Table 6.7 : Equipment Cost Table 6.8 : Delivery Cost Table 6.9 : Communication Consumption Table 7.0 : Electricity Consumption Table 7.1 : Salaries and Wages Table 7.2 : Packaging Cost Table 7.3 : Repair and Maintenance Table 7.4 : Fuel Projection Table 7.5 : Waste Water Table 7.6 : Solid Waste Table 7.7 : Water Projection Table 7.8 : Electricity Projection Table 7.9 : Price Inventory of Raw Material Table 8.0 : Price Inventory of Finished Goods Table 8.1 : Total Project Cost Table 8.2 : Cost of Sales Table 8.3 : Marketing and Administrative Expense Table 8.4 : Balance Sheet Table 8.5 : Breakeven Table 8.6 : Cash Flow Table 8.7 : Projected Income Statement Table 8.8 : Rate of Return Table 8.9 : Schedule of Amortization Table 9.0 : Payback 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 83 84 85 86 87 88 89 90 91 92 93 LIST OF FIGURES Figure 1: Logo of the Company Figure 2: Product Distribution Figure 3 : Historical Demand of Bond Paper Figure 4: Projected Demand of Bond Paper Figure 5 : Overall Material Balance Figure 6 : Detailed Material Balance Figure 7 : Equipment Pictures Figure 8 : Location Map Figure 9 : Organizational Chart Figure 10: GANTT Chart Figure 11: Equipment Layout Figure 12: Plant Layout ……………………………………………….. ……………………………………………….. ……………………………………………….. ……………………………………………….. ……………………………………………….. ……………………………………………….. ……………………………………………….. ……………………………………………….. ……………………………………………….. ……………………………………………….. ……………………………………………….. ……………………………………………….. 5 7 11 14 14 33 34 41 50 55 63 49 52 AgriWaste Paper Industry INTRODUCTION Today’s world is undoubtedly the world of industrial development. The Philippines in order to cope up with the growing world of science and technology has joined in the race of stability and have created industrial plants and improved within our country not only in the industrial centers but also in the less urban areas. The growth of industries had created a demand for technical men and women to design, construct, and operate industrial plant. Through the research and development programs, new technology of using alternative raw materials that are less expensive but highly competitive to the world market specifically to the exportation activities have been developed. The pulp and paper industry plays a major role in the viewpoint of mass communication, education and industrial economic growth. The art of paper making is centuries old. Its development closely follows the trend of economic growth and also population growth. On the other hand, the available environmental resource depleted each year specifically the timber resources for the paper manufacture. Thus, through some enormous research work several papermaking techniques using agricultural residues such as bagasse, rice husk, jute sticks, grasses, corn stovers etc. has given a clear view in the paper mill industry and now rapidly becoming popular to be used as source of raw materials for papermaking. The use of agricultural residues and other waste materials which are traditionally thrown away or burnt are presently used and studied to prevent degradation of the natural ecosystem, to reduce the load of fresh fibers from timber resources, and also to reduce the waste disposal. 6 AgriWaste Paper Industry HISTORY OF PULP AND PAPER MANUFACTURING IN THE PHILIPPINES 1 Before the 1930’s the Philippines imported paper from China, Spain (15651898), and the United States (1898-1946). The country did not have the market to justify mass production of paper and its’ vast forests were believed unsuitable for this purpose. The rapid development of the sugar industry and the advancement of processes for bulk production from straw and bamboo, however, changed the trend in the 1930’s. In 1939, the Compania General de Tabacos de Filipinas organized Compania de Cellulosa de Filipinas. The said company built the country’s first pulp and paper mill, a 10 tons/day bleached paper mill at Bais, Negros Oriental, based on bagasse from a sugar mill they controlled in this area (Central Azucarera de Bais). This mill used the Pomilio process consisting of a mild caustic cook, chlorination with gaseous chlorine, followed by a conventional bleaching system. It now has a capacity of 45 tons/day of bleached writing paper. In 1950, the government-owned National Development Corporation brought in a paper machine (20 tons/day) to produce cement bags from imported pulp. This machine was later transferred to the APO Cement Corporation for the same purpose and intermittently operated for a few years but was finally shutdown. In 1948, the San Miguel Corporation started up the first paper corrugator in the country using imported board. The popularity of this packaging product immersed swiftly and created a growing demand for containerboard. Because of the deteriorating balance of payments position, the government was forced to institute import controls in the late 1940’s, and these continued through the 1950’s. Such controls encouraged the establishment of a number of small paper mills operating on imported pulp or waste paper. The first of these was the Philippine Paper Mills, Incorporation, which started in 1951 to produce chipboard from waste paper. In 1960, a group of local businessmen organized the Bataan Pulp and Paper Mills, Incorporation, to build a pulp and paper mill based on bamboo. This mill, with 1 Scale Paper Making – International Labor Office Geneva, Technical Memorandum No. 8 7 AgriWaste Paper Industry a capacity of 75 tons/day of bleaching writing paper started up in 1962 but ran into serious problems with the supply of raw materials. In 1950, Bislig Bay Lumber Company, Incorporation, began to operate a timber concession on the eastern coast of the island Mindanao, which formed the raw materials’ base for a large-scale pulp and paper mill. Bislig was confident that the technology could be developed to use the short-fibred Philippine mahogany in the manufacture of paper and was particularly interested in producing Kraft Container board for use in the corrugated carton plant of San Miguel Brewery Incorporation. A research program was started on the use of Philippine woods for this purpose. In 1953 Bislig Industries started to implement this project. Bislig Industries, Incorporation is now known as the Paper Corporation of the Philippines. In 1973, the United Pulp and Paper Company built an integrated pulp and paper mill in Bulacan (Luzon) to produce 30930 tons/day of Kraft pulp for cement bags. This mill uses bagasse pulp manufactured in its own pulp mills and imports long fiber pulp. The pulp and paper industry of the Philippines has been badly hit by the previous recessions. Developed countries have repeatedly dumped paper into the country at incredibly low prices, which has severely distressed local markets. However, it can be expected that the pulp and paper industry of the Philippines will survive the crisis and emerge in a more efficient and stronger financial condition. Steps are being taken to increase the reserve of raw materials through an extensive reforestation program, and the country is expected to become a significant factor in the pulp and paper industry in Asia. The Paper Industry Future Education, literacy and industrial growth spur the demand for paper products. The development of paper industry closely follows the trend of economic growth. Therefore, as more income is realized in the country, paper consumption and production are anticipated to rise. Taking into consideration the annual growth of the 8 AgriWaste Paper Industry country’s population and favorable outlook for the economy, domestic demand for paper and paper products will be on up trend in the coming years. Paper- Uses and Applications2 Paper represents a commodity of day to day modern life. It is well known item which, is only media of communication through writing. It has helped the men from past in practicing to become literate and educated. It is considered as the most important and right medium for education. Nowadays, use of paper of different qualities has become very important in every field of modern life i.e. offices, education institutes, research and engineering centers, art rooms, book printings, magazine and newspaper publishing etc. The Corn Production3 On a worldwide basis, corn is planted on approximately 325 million acres (132 million hectares), with a harvest of more than 450 million metric tons (17.7 billion bushels; 624 billion liters). This annual harvest is second to wheat, by a difference of less than 10 percent. In industry, corn is used in the manufacture of a wide range of nonfood products. Even the cornstalk and other plant parts have industrial uses. The stock is processed into building materials, conditioners, paper, explosives, and packing materials. The cobs yield furfural, a raw material used in the manufacture of plastics, nylon, and other materials. The husks are widely used as fillers, and their tender inner parts are boiled to sugar and then pressed and dried to make cigarette paper. 2 3 Handbook on Pulp and Paper Industries -SIRI Board of Consultants and Engineers Colliers Encyclopedia, Volume 7 c.1996 by P.F. Collier and Sons Limited, U.S.A. p.333 9 AgriWaste Paper Industry The Corn Plant and its Type4 The corn plant has a jointed stalk varying in height from 2 to 20 feet (0.6-6 meters) and in diameter from one half inch to 2 inches (1.3-5 cm). At the base of each stalk, or internode, are buds that produce lateral branches called ear shoots. These ear shoots may develop into ears of corn. The leaf consists of the blade, the sheath, and a collar-like ligules. The leaf blade tapers from the central midrib to the edges and also to a point at the leaf tip. The development of the pulp and paper industry closely follows the trend of economic growth. Therefore, a small income is realized in the country, paper consumption and production are anticipated to rise. Taking into account the 2.4 % average annual growth of the country’s population and the favorable outlook of the economy, domestic demand for paper and paper products will be on the uptrend in the coming years. It is unfortunate though those because of frequent breakdown obsolete plant equipment, domestic production has not been able to meet rising demand. It only accounts for 6.5 % of the supply of pulp and paper were the balance is satisfied through input. If the industry desires to reduce input dependence and conserve scarce foreign exchange, players would have to invest in new facilities the face of the challenge of improving product quality and cost competitiveness. Corn varies in different types. Dent corn is the principal type grown in the Corn Belt. Flint Corn has no dent or depression in the top of the kernel, and the endosperm is almost all hard starch. The group is grown primarily in the Northern United States where it is suited to the shorter growing season because of its earlier maturity. Popcorn is a type of flint corn with small kernels that have the property of bursting when heat is applied. The bursting occurs because of the rapid expansion of the starch endosperm. In the United States, popcorn is raised in Illinois, Indiana, Iowa, Kentucky, Nebraska, and Ohio. Flour Sour has no dent in the top of the kernel, and the endosperm is all soft starch. Because of the soft starch, the kernel 4 Colliers Encyclopedia, Volume 7 c.1996 by P.F. Collier and Sons Limited, U.S.A. p.334 10 AgriWaste Paper Industry grinds into flour easily. Flour corn is grown in many of the Central and South American countries. In sweet corn the endosperm contains dextrin, a sugar-like substance, with a lesser proportion of starch than the endosperm of other groups of corn. The kernel may be more or less wrinkled when ripe, depending upon the stage of maturity when harvested. 11 AgriWaste Paper Industry EXECUTIVE SUMMARY NAME OF THE COMPANY AGRIWASTE PAPER INDUSTRY AgriWaste Paper Industry is the name chosen for our company simply because we are producing a quality bond paper product through the utilization of agricultural waste such as corn stovers. LOGO OF THE COMPANY Figure 1.Logo of the Company The circle represents our objective to become globally competitive in the market; the corn plant symbolizes our main raw material. The color green represents our objective to become an environment friendly industry. VISION The company shall be recognized as a world class manufacturer of quality bond paper using global technology with local expertise. It shall be known as industry leader not only in the production of quality bond paper and other paper products but also to the development of creative and innovative people as well. MISSION AgriWaste Paper Industry is fully committed to produce bond paper of high quality and standards cheaper compared to imported bond papers, by providing the needs of local industries and foreign and to contribute to the improvement of in the commercial and industrial segments of the society. 12 AgriWaste Paper Industry OBJECTVES OF THE PROJECT This study aims to design a small-scale process of paper plant that will manufacture, produce and sell paper product which is bond paper from agricultural waste. The company’s project expects to achieve the following objectives: To be known as the leading manufacturer of quality paper in the Philippines and also in the world market by providing good quality of bond paper at low cost to our economy. .Aims to help in minimizing the waste produced by the agricultural products such as corn through using the corn stovers as our main source of pulp. Aims to necessitate and support the increasing demand of bond paper in local and global market. Aims to minimize the importation of bond paper by increasing 7% of our production every five years. Aims to help improve the economic status of Santiago City, Isabela and its neighboring towns and cities by providing additional employment. STATEMENT OF THE PROJECT The following statements represent the overall purpose of the company: To manufacture, distribute, and sell, ready at all times to increase and improve the production to meet the changes in market demand. To provide significant contribution to the country’s profit income. To satisfactory create revenue that will ensure an adequate company growth rate. To maintain the highest ethical standards in the conduct of the business. To facilitate both personal and professional development of the employees. To be socially responsible. 13 AgriWaste Paper Industry SWOT ANALYSIS Strength Production of quality bond paper at low cost / moderately priced On time delivery Provide employment Utilize agri-based waste, particularly corn stovers New breed of entrepreneurs Customers/clients are always satisfied; we exceed customers satisfaction Support the government in their aim to uplift the economic situation Weakness Not well-verse in the field of business (Shifts to strength is by hiring experienced people in the business field) Opportunities Increasing Demand/High demand for bond paper Welcome new investors Open to new trend and market Welcomes sponsoring project Availability of a cheaper but of better quality of paper New development/techniques and technology Tough competition in the market The emergence of the imported paper and thin competitive products in Threats the field of printing and writing Peso devaluation – the decline or peso is a great effect in our company’s profit and other aspects as well, since our equipment will be imported from other countries. (Shifts to opportunities is by maintaining good quality of the product and having lower price that will be an advantage) 14 AgriWaste Paper Industry MARKET STUDY PRODUCT DESCRIPTION Bond Paper All types of paper are made from pulp containing fibers that form a matted or felted sheet on a screen when moisture is removed. Nearly all paper is made up of cellulosed fibers. The bond paper product we will be manufacturing was made from agricultural fibers of corn stalks (stovers). 1. Name of the Product AgriWaste Superior Bond Paper 2. Properties of the Product The bond paper produced would be a bleached and sized paper that is suitable for writing, printing and other graphic purposes. Some of the characteristics of our bond paper are its good strength and durability in repeated handling, sized so as to the prevent spreading of writing ink and render the paper more resistant to moisture, and bleached so as to improve brightness and clarity. It has also a good surface quality and erasability. Table 2.1 Properties of Bond Paper Product Substrate Type: superior bond paper Weight Size Opacity Smoothness(BEKK, sec) Caliper Brightness (%, min.) 160gsm (43lb.) Tint (Lab) 8.5” x 11” Gloss >90% Environmental Use 45-55 45-55 Storage Conditions (boxed) 92 15 93.5, 3.0, –7.0 n/a 15ºC–25ºC (59°F– 77°F), 30–70% RH noncondensing 10ºC–30ºC (50°F– 86°F), 10–80% RH noncondensing AgriWaste Paper Industry 3. Uses of the Product The use of the product is for writing, printing and other graphic purposes which, is characterized to have a good product quality with affordable price. 4. Major Users of the Product Schools (Private and Public) Companies/Offices (Private and Public) Bookstores 5. Product Distribution The diagram represents the flow of our product distribution to our target customers. Process Plant Warehouse Marketing Wholesaler Bookstores Commission Agent Schools ( Private & Public) Final Consumers Figure 2.Product distribution 16 Companies/Offices ( Public & Private) AgriWaste Paper Industry 6. Areas of Dispersion AgriWaste Paper Industry will be located at Santiago City, Isabela. The bond paper products will be distributed mostly in public and private companies and public and private schools, bookstores within the area of Santiago City, and nearby towns and cities in the Isabela province. Nearby provinces will also be of great interest. SELLING PRICE ANALYSIS Establishing a new business means you have to be very competitive in all areas: quality, economically friendly and an affordable and reasonable price for the consumer. To decide the best price for the product, the sales team must know the competitor’s price if the company can lower or meet the competitors pricing without sacrificing the quality rendered to the product produce. In order for us to determine the price of our product, we collected the price list of our major competitors if we can meet their price. Table 2.2 Price List of Some Market Competitors5 5 Brand Name of Our Major Competitors Price / ream (500 pieces) Best Buy 163. 75 St. James 190.00 Corona 225.00 Advance 200.00 Sterling 210.50 Prices are based on National Bookstores 17 AgriWaste Paper Industry Aside from collecting our competitors’ price list, we also considered the following aspects: Government rules and regulations on price hike Taxes rendered to our government Product advertisements and promotions Comparison of our products to our competitors Considering the said factors, we have come up that our price per kg will be Php37.62/kg. Our product will be competitive with the other commercialized quality bond papers in the market today. 1. Price of the Product The company’s bond paper production would be 6,062,654 reams per year and increase of production every five years. The main raw material which is corn stovers will be obtained free from the farmers but we will be paying for the labor of collecting the corn stovers for us. The input corn stovers would be 100% and the selling price of our product will be Php85.02/ream of bond paper. 2. Target Market The target market of our company will be the fundamental users of our products which consist of schools, companies/offices, printing/publishing corporations and other that needs high quality and at low cost bond paper. HISTORICAL AND PROJECTED DEMAND AgriWaste Paper Industry will be producing bond paper for the first 10 years. As the company celebrates its 10 years of operation, other kinds of paper such as newsprint, onion paper and board paper will be proposed to produce. Importation of the product will be done to meet the demand of Cagayan Valley Region consumers. 18 AgriWaste Paper Industry From the Historical and Projected demand, almost 2% of the nationwide consumers are from Isabela Province. HISTORICAL DEMAND Thousands DEMAND(MT/Year) 900 800 700 600 500 400 300 200 100 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year Figure 3. Historical Demand of Bond Paper D em and (M illion R eam s) PROJECTED DEMAND 700 600 500 400 300 200 100 0 2006 2008 2010 2012 Year Figure 4. Projected Demand of Bond Paper 19 2014 2016 2004 AgriWaste Paper Industry Analysis of Projected Demand Based on the data gathered, there is an existing demand for bond paper. Using the population (see Appendix A) growth rate, an optimistic projected demand should be expected. Supply is based mainly on local production, which shows a very healthy pattern of growth in the consumption. The graph shows a steady increase of projected demand within ten years. The positive outlook of the graphical projections can be justified by the influence of the general economic progress of the country, degree of personal disposable income, population growth, and price competitiveness of accessible paper as compared to international standards. With the annual increase in demand, there is a need to step up production to satisfy consumers. Technical Feasibility The working process is continuous due to the demand of paper in the Philippines. The operation will be 24 hours a day and seven times a week. To ensure the correct implementation of the plant procedure, the company will employ highly qualified personnel and research workers. MARKET SHARE The assumed market share of AgriWaste Paper Industry, as a pioneer of corn stover bond paper, will be 1.6% of the total Philippine bond paper market in 2007. After five years of continuous supply, the company will increase its production by 7% of the year 2011 and another 7% in the year 2016 total bond paper demand 20 AgriWaste Paper Industry Table 2.3 Market Share Projection MARKET SHARE Sales Year Population Phil. (ages 4-69) Consumption (pcs paper/personyear) Demand (pcs/ person/year) Demand (MT / Year) (MT/Year) 2007 75179054 2555 192082481809 868,213 12,559.35 0.0145 2008 76656012 2555 195856109499 885,270 13,701.11 0.0155 2009 78132970 2555 199629737189 902,326 13,701.11 0.0152 2010 79609928 2555 203403364879 919,383 13,701.11 0.0149 2011 81086886 2555 207176992569 936,440 14,660.19 0.0157 2012 82563844 2555 210950620259 953,497 14,660.19 0.0154 2013 84040802 2555 214724247949 970,554 14,660.19 0.0151 2014 85517760 2555 218497875639 987,610 14,660.19 0.0148 2015 86994718 2555 222271503329 1,004,667 14,660.19 0.0146 2016 88471676 2555 226045131019 1,021,724 15,619.27 0.0153 Sources of population: National Statistics Office (NSO) 21 Market Share AgriWaste Paper Industry FACTORS AFFECTING THE MARKET The following factors may affect the industry market: Population Growth The increase in population greatly affects the market of bond paper since the demand greatly follows the trend of the increasing population. Therefore, there would be a greater demand for our bond paper products which means there would be also a step up in our production. Improved Technology The significant technological improvements such as the use of electronic mails in the business transactions of the companies/offices can decline the demand of bond paper. On the other hand, with the knowledge on advancement in the technology we can also improve our company’s process/production which can help us to produce a better quality and more products to produce. Emergence of New Competitors The emergence of new competitors can affect the market of the product since people have the tendency to compare our bond paper product produced with our competitors in the market. To ensure the customers trusts, we will produce the best quality bond paper at lower costs and also establish an effective quality management system and environmental management systems. High Costs of Fuel and Energy Among of the largest cost components in papermaking are its electrical energy and fuel energy. On the average, they constitute about 25-30% total production costs for local paper manufacturer. Protecting the Industry Protection for domestic pulp and paper industry are either direct or indirect. Imported Machineries and Spare Parts Taxes and duties of machinery, equipment and spare parts not produced locally should be kept at minimum levels. 22 AgriWaste Paper Industry MARKETING PLANS AND PROGRAMS The following marketing plans will guide our company all throughout the operation: Selection of major market or product areas for growth and profit improvement. Evaluation of market and competitive situation in each selected areas. Establishments of goals for each area selected. Determination of the possible strategies to achieve goals. Implementation of strategies to achieve through plans that conclude specific programs, completion dates and responsibility assignments. Aggressive goal centered leadership plan measurements and control of progress to achieve goal. Plans to expand its operation by producing book paper in next 15th year of operation. MARKETING STRATEGIES The following strategies will be done to be able to become competitive to the market: Product Launching The product will be launched in the Isabela province which will be developed by prominent people whose expertise in paper producing technology is of top caliber. Conduction of Seminars Seminars with respect to the bond paper products will be conducted. The seminar will focus on the Pros and Cons of our products as well as the company performance. It also includes some seminars for educational purposes of the employees. 23 AgriWaste Paper Industry Distribution of Leaflets and Brochures Leaflets and brochures will be distributed to large and small users of the product to ensure knowledge with regards to the quality and price of our product and also to be able to promote and at the same time advertise our product. Implementing Bulk Promotion The company will implement a bulk promotion for our customers. They will be entitled with great discounts if they will order in large quantities. Direct Selling Approach The direct selling of our product will be done through personally meeting the clients in their respective offices and ask them if possible they will allow us to test the quality of our product and if they will be satisfied, purchasing will be possible. Internet Address Information regarding our product will be available though our website. MEANS OF TRANSPORTATION Large Trucks (6-wheeler trucks) are the ones that we will be using to collect corn stovers in the farm. Our company will be having its own trucks for such activity. However, if in any case our trucks will not be available (due to motor failure, flat tires), we plan to contract trucking establishment so that the activity will not be cancelled or delayed. For delivering our finished product (bond paper), the company will have smaller trucks called Isuzu-elf. The main reason for having an “elf truck” is for the accessibility of passing the narrow roads. Also in several places in our target provinces, market places (where dry and wet goods are sold) are not accessible by huge trucks. Thus, we have to use elf to reach our prospective buyers. In transporting the bond paper to our valued client is dependent of the location or site of our target customers. The company will deliver the product within one week after the placement of order by the customers. In case of exportation, the product is transported through ships contacted by the company. 24 AgriWaste Paper Industry TECHNICAL STUDY DESCRIPTION OF RAW MATERIALS The production of paper is for most part concentrated in areas that have abundant supply of fibrous raw materials especially wood but in our case agricultural waste such as corn stalks (stovers) would be in abundant. A. Properties, Collection and Storage of Corn Stovers Corn stalks (stovers), like straws, would probably be harvested in a time frame consistent with the harvest of the grain, depending on specific harvesting methods. The harvest of corn is usually twice a year but other provinces can raise corn all year round. During rainy season months of July to September the production supply is minimal. Thus, during its peak harvesting months of summer, collection of corn stovers must be made so that the amount of raw needed is met. The storage room must be kept clean and the management must keep the cleanliness of the area, avoiding personnel smoking around the premises because it is fire friendly and also to avoid cases such as fire burning. The bulk density of corn stovers is 0.7216. The theoretical ultimate strength of primary valence chains of cellulose is calculated as 800 to 2260 kg/mm2, however the ideal values approaches 100 kg/mm2. Thus, it is just appropriate to estimate that we can stock corn stovers for as high as 20 meters in height and as many as 2000 cubic meters in volume is acceptable. Corn stalks (stovers) cellulose content (35-45%5) ranges significantly depending on variety and regional conditions and a pulp yields of 30-40%.7 6 7 Bulk density is http.www.denscs.com/cornstalk.com Rymsza, Thomas A., “Agricultural Residues in Pulp and Paper Discussion Paper” 25 AgriWaste Paper Industry Table 3.1 Non-wood Plant Fiber Characteristics8 Fiber Source Fiber dimensions of various non-woods Length (microns) Diameter (microns) Max Min Ave Max Min Ave Corn Stalks (Stovers) 2800 680 1260 20 10 16 L/D Ratio 8:01 B. Chemical Requirements 1. Powdered alum Alum is the common name for aluminum sulphate. Technically, the term should be restricted to one of the double salts of aluminum sulphate and alkali sulphate, such as potassium aluminum sulphate, K2SO4Al2(SO4)324H2O, which originally was used in paper making because it was the purest form of alum. Alum is soluble in water and is generally used in solutions containing from 2 to 3.5 lb. per gal. The iron-free alum is use for the best grades of paper.9 Alum is usually added to correct the pH value. It is added to the paper stock in order to increase its acidity to approximately pH 5. It is essential additive for good refining adequate sizing, or rosin dispersion. It is also affects press performance by reducing the tendency of paper to adhere to the top press roll. It is commonly supplied in solid block form, but should be dissolved in water and used in liquid form at a constant density. This chemical is also used for water treatment in order to induce flocculation. Average consumption is 5 to 8 percent by weight of the final product (bond paper).10 8 Hurter, Robert W., “Agricultural Residues”, TAPPI 1997 Non-wood Fibers Short Course & Hurter, A.M., “Utilization of Annual Plants and Agricultural Residues for the Production of Pulp and Paper”, Non-wood Plant Fiber Pulping Progress Report #19, TAPPI Press, pp. 49-70 9 http://www.perigee.net/~jrjohns/aluma.html 10 Handbook on Pulp and Paper Industries-SIRI Board of Consultants and Engineers 26 AgriWaste Paper Industry 2. Rosin Rosin is water-repellent substance obtained from the gum (oleoresin) of the southern pine, chiefly from the long leaf species. It is available in solid form and it must be brought to a liquid emulsion before use. When it is distilled from the gum that exudes from the living tree, it is called gum resin. However, when it is extracted from the pine-stump wood or other resinous wood by the steam and solvent process it is known as wood rosin.11 Rosin has a very low melting point and it is good sizing agent; contains 90% resin acid (abietic acid) and 10% neutral material. It is also susceptible to chemical or physical treatment that will make it readily soluble or mixable in water. It improves printing or writing properties by controlling ink penetration. The average consumption is proportional to the consumption of alum.12 3. Sodium Hydroxide (Caustic Soda) It is used in the manufacture of many organic and inorganic compounds, also in soap making, paper making, rayon, detergents; in refining petroleum and vegetable oils; and in reclaiming rubber. NaOH is prepared by the electrolysis of aqueous NaCl and KCl solutions and it is a strong base and very soluble in water.13 Sodium Hydroxide is extensively used as a cooking chemical in paper mills. It is available in solid form and also in liquid form at 50% concentration. The amount of sodium hydroxide varies according to raw materials used. For cotton linters, jutes, etc. caustic soda is used around 5% of the total raw materials and for rice straw and bagasse around 12 to 14%.ε 11 http://www.wikipedia.com.wiki/rosin Handbook on Pulp and Paper Industries-SIRI Board of Consultants and Engineers 13 http://encyclopedia.thefreedictionary.com/Sodium+hydroxide ε Handbook on Pulp and Paper Industries-SIRI Board of Consultants and Engineers 12 27 AgriWaste Paper Industry 4. Sodium Hypochlorite Sodium Hypochlorite is the preferred method of shock treatment because it is readily soluble and rapidly increases the free chlorine content of the water. Just as importantly the chlorine level drops quickly, especially in strong sunlight, to a level in which bathers can return into the water. Sodium Hypochlorite is ideal for shock dosing as it is a strong oxidizing agent. This enables it to destroy combined chlorines, the source of irritation and odor complaints. Sodium Hypochlorite contains 65% available chlorine.14 Sodium Hypochlorite is usually used as a bleaching agent in paper pants. The purpose of sodium hypochlorite in bleaching the pulp is to convert the lignin in the pulp to compounds that are soluble in water or alkali. It is used to obtain better color stability and to reduce the viscosity of the cellulose for the case of dissolving pulp.15 5. Starch Starch is used to improve the quality of writing and printing papers or the stiffness of water-based corrugating medium. It is most effectively applied, in liquid form at about 30 to 40 % concentration, to the surface of the paper through a size press. More often starch can also be used in a less effective manner as an additive to paper stock. It is also added to give firmness, stiffness, and strength particularly to the surface of the sheet.16 Starch must be cooked and prepared in liquid form before use. Ready prepared starch is available and used extensively in developed countries but is not likely to be used by the small mill in developing countries. Starch requirement ranges from 3 to 12 percent by weight of paper, depending on the quality to be achieved. 17 6. Talc 14 http://encyclopedia.thefreedictionary.com/Sodium+Hypochlorite Handbook on Pulp and Paper Industries-SIRI Board of Consultants and Engineers 16 http://www.lsbu.ac.uk/water/hysta.html 17 Handbook on Pulp and Paper Industries-SIRI Board of Consultants and Engineers 15 28 AgriWaste Paper Industry Talc is hydrated magnesium silicate. It serves as a substitute for clay in similar proportions. It improves the opacity, brightness, and finish of writing and printing papers. The amount required ranges from 10 to 15% by weight of the paper.18 MANUFACTURING PROCESS Paper is a sheet of interlaced fibers – usually cellulose fibers from plants that are formed by pulping the fibers and causing them to felt, to mat, to form a solid surface. Paper is said to be of high quality when the pulp used is of good quality composed primarily of cellulose fibers. Papermaking is a continuous process, an unbroken line of production that begins with wood or non-wood fibers (such as of corn stovers) and ends with the cut sheet of paper. The lignin, the material that holds corn stovers cells is dissolved, and the cellulose fibers are to be separated primarily because it is very complex and causes color reaction with age. Chemical process is usually done in the pulping process which was used to remove the lignin content of the non-wood fibers, and the chemical solution consists of caustic soda is digested through a digester. Cooking time may be as long as 2 to 3 hours depending on the recovery potential of the raw material and the pulp characteristics. Therefore, we can say that pulping is the most meticulous process in papermaking because it is the primary component of our product – paper. If chemical pulping stages are wrong, the manufacturer will not be able to produce quality paper products. Thus, we will concentrate primarily on the chemical pulping processing stage. FIBER PREPARATION 18 Handbook on Pulp and Paper Industries-SIRI Board of Consultants and Engineers 29 AgriWaste Paper Industry Corn Stover Preparation From the warehouse house, the corn stovers will be transported using forklift and then be loaded manually into the mouth of the shedder and shredded to a uniform length and transferred to though belt conveyor in the duster to be dusted before loading into the digester. The removal of dust is record in order to ensure good pulp quality; dust losses of around 0.3 % will be expected. The stovers will be cut into pieces for 20 to 30 mm. long in order to facilitate the flowing of the chopped, dusted stovers will then be transferred to the digester through an elevated belt conveyor. PULPING STAGE Digestion In the digestion process, it consists of cooking the prepared material in the presence of sodium hydroxide (caustic soda) to isolate the cellulose fiber from the lignin and other constituents of the corn stovers without causing much damage to the fibers. Lignin acts as the binding materials and non-fibrous in character and therefore must be eliminated in the process. Various pulping chemicals are used to dissolve the lignin selectively and separate the fibers. In chemical pulping, the lignin and other impurities are removed. The materials in the continuous digester are screw-propelled through the cooking zone because stringy vegetable materials do not flow naturally and mechanical propulsion is therefore required to ensure constant feed.19 The process begins when the prepared corn stovers are loaded into the digester through conveyors. The cooking of corn stovers chips is carried out at temperatures of 170 degree Celsius and 0.4 MPa in the digester at 12% caustic 19 J. Newell Stephenson, “Pulp and Paper Manufacture, Volume 2”, c.1951, Joint Executive Committee of Vocational Education Committees of the Pulp and Paper Industries, USA, 1951. 30 AgriWaste Paper Industry soda solution (white liquor)20. A boiler is used to supply steam for the digester. The proportion of caustic soda solution to pulp will be 1:4. Caustic soda consumption for corn stovers pulping amounted to 12 percent by weight of bone-dry stovers input. During the cooking process, the lignin and some hemi-cellulose molecules of the corn stovers are break into smaller ones. After sometime, the lignin and hemicellulose contents have been removed. The charging liquor which is made up from the caustic solution, some returned spent cooking liquor (termed “black” liquor”) and hot water. The white liquor turned to black due to the dissolved impurities. Blow tank After cooking, the content of the digester is discharged through a valve at the bottom of the digester. The pulp is transported through pipes using pumps, next, transferred into the towering blow tank. The stock enters tangentially at such high speed that it hugs the wall of the separator while the steam escapes to the center and out through the ventilator. The pulp softened by the cooking process smashed to the walls of the blow tank. On blowing the charge the sudden release of pressure causes violent evolution of steam from the moisture in the chips, and this, together with the mechanical action of passing through the pipe, causes complete disintegration into the fibrous state. The separator is usually placed at an elevation higher than the top of the digesters and the stock therefore drops by gravity to the washing equipment. At this point it contains the fiber, all the alkali originally added, the organic matter dissolved during the cook, and a large amount of water, both from the liquor added and from condensed steam. 20 J. Newell Stephenson, “Preparation and treatment of Wood Pulp”, Mc Graw Hill Book Company Inc., New York, 1950. 31 AgriWaste Paper Industry Washing From the blow tank, the pulp and accompanying black liquor is usually coarse-screened in order to remove uncooked particles (or shives), which should not exceed 5 percent of the mixture. The rejects can be either returned to the digester for further cooking or mechanically processed to an acceptable condition by “refining”. However, for mills of very small capacity the quantity of rejects is insufficient to justify investments in a refiner. In order to obtain good quality pulp, a three stage, counter-flow washing is used. This procedure should also reduce chemical losses if the mill is equipped with a chemical recovery unit. Washers are open surface cylinders, covered with a wire mesh and rotating in vats. The unwashed pulp is fed to the vat and picked up by the cylinder. The liquor is drained away through the surface wire-mesh. The black liquor drained from the first washer contains all the non-cellulose matter and chemical residues removed from the pulp. It is passed to a filtrate tank for disposal or chemical recovery except for a fraction, which is used for the making of the cooking liquor supplied to the digester. Washers can be either very simple and inexpensive or somewhat complicated and costly but more effective. The most satisfactory units operate under vacuum and require a special construction. Drainage is, in this case, improved and the on-going pulp contains less chemical or organic impurities. Washers used in small mills can be elevated in order to achieve the vacuum required barometrically. This procedure reduces capital costs and power consumption. Washing is necessary to prevent undesirable matter goes forward with the pulp and adversely affects the bleaching quality and, ultimately, the quality of the paper produced. 32 AgriWaste Paper Industry Screening The consistency of pulp leaving the washers varies, depending on the effectiveness of the washer. The next stage is screening in order to remove particles unsuitable for the paper process. Also, the extra water was removed before the bleaching process proceeds to ensure that the available chlorine in sodium hypochlorite will immediately used in the pulp. There are several types of screens suitable for small mills. However, the best types are fully enclosed pressurized or centrifugal screens. After screening, the pulp is ready for the bleaching process. STOCK PREPARATION Stock is treated in a beater or a refiner to give it desired characteristics for paper formation. In a common type of beater, the fibers are mixed and pounded between a large metal drum and a bed plate along the bottom of the beater. Beating shortens the fibers and causes them to swell and fibrillate (fray along the sides and at the ends). Beaten fibers form a tighter bond, and therefore a stronger paper, than fibers that have not been beaten. Bleaching Bleaching is normally carried out on a three-stage basis. However, very small mills may operate with a single-stage bleaching only. The bleaching process removes the residual non-cellulose material from the pulp since it cannot be removed by cooking without a lowering of both pulp quality and yield. Chemical grade pulp contains 3-5% lignin. The residual lignin and other matters left on the fibers caused the dark color of the pulp. This pulp could not be used immediately as to produce a white grade paper product. Thus, a bleaching process must be carried out to whiten the pulp. Care must be observed so as to prevent the cellulose degradation. Sodium hypochlorite will be used as bleaching chemical. 33 AgriWaste Paper Industry Refining The refiner is designed to fibrillate the cellulose fibers. Paper that has been made from refined pulp has a greater resistance to tearing and bursting than that from unrefined pulp. In this process, the addition of various additives such as rosin, alum, starch and talc are performed. The sizing of paper (prevention of ink penetration) is accomplished by adding rosin and alum. The talc is also added to improve the quality of paper in terms of opacity, brightness and finish of the sheet. Starch is added to give firmness, stiffness, and strength particularly to the surface of the sheet. Paper Machine This huge machine is fed the stock, which is about 99 % water, and produces a finished roll paper. The most widely used machine is the Fourdrinier machine after the two brothers who perfected it. The stock is pumped into the first part of the machine, the head box. Here the stock is given a final mixing, and turbulence is removed so that the flow into the rest of the machine is smooth and even. The stock leaves the head box through the slice, an unjustable nozzle that controls the flow of stock onto a wire mesh. The wire mesh, sometimes called the Fourdrinier wire, is the mold for forming a continuous sheet of paper, or web. The wire is an endless belt that acts as conveyor belt. As stock is put on one end, the wire moves along and shakes to interlace, or felt the fibers. Water drains out through the opening of the mesh. As it approaches or reaches the end of the wire, the web may pass under a roller which compact the fibers. From the wire, the web of paper, which is about 80% water, is carried to press section of the machine. From presser, paper is transferred to the dryer, a series of metal rollers. 34 AgriWaste Paper Industry Packaging The last stage in papermaking is creating a sheet size by means of paper cutters. The dried huge sheet of papers will be passed through the paper cutter for the desired bond paper size of 8.5” x 11”. 35 AgriWaste Paper Industry MATERIAL BALANCE MAJOR ASSUMPTIONS Duster Dust removed – 0.3% of pulp fed Mixer1 NaOH – 12% solution 4 tons- of pulp ton of NaOH solution Digester Corn Stover composition: • lignin (35%) • cellulose (65%) Washer1 Water added – 70% of the pulp fed Black Liquor composition • All NaOH fed • 35% of Corn Stover fed • 67% of total Water fed Screens Water removed - 75% of total Water Input Bleacher 1 ton NaOCl solution 100 tons pulp NaOCl solution Bleaching Agent (15% NaOCl, 85% Inert) Washer2 Water Added – 70% of pulp fed Water removed = 5% pulp, all NaOCl solution, 70% total H2O (wastes) 36 AgriWaste Paper Industry Refiner Alum – 10% of pulp fed Rosin – 10% of pulp fed Mixer2 8 tons of pulp Talc = 1 tons talc Starch – 12% of pulp fed Fourdrinnier Machine Water evaporated from the wet pulp – 94.5 % water fed Packaging Waste Paper – 2% paper fed 37 AgriWaste Paper Industry OVERALL MATERIAL BALANCE Figure 5. Overall Material Balance 38 AgriWaste Paper Industry DETAILED MATERIAL BALANCE Basis: 39.76 MT/day 39 AgriWaste Paper Industry 40 AgriWaste Paper Industry SCREEN INPUT = 52.32 MT MT % Wet Pulp 52.32 100 OUTPUT = 32.52 MT MT % Pulp 32.52 100 OUTPUT = 19.80 MT % Waste Water 19.80 100 41 AgriWaste Paper Industry 42 AgriWaste Paper Industry 43 AgriWaste Paper Industry ENERGY BALANCE Q = mCp∆T = m(Hv – Hl) Digester mcorn stover Cpcorn stover ∆T + mwater CpH20 ∆T + mNaOH CpNaOH ∆T msteam = (Hv – Hl) msteam = {(39.88 MT)(1.33978)kJ/mole-K(170-25)K + (8.77 MT)(4.16868) kJ/moleK (170-25)K + (1.20MT)(.00451402) kJ/mole-K (170-25)K} (2793.3-104.89)kJ/mole msteam = 4.87 MT Fourdrinnier Machine mcorn stover Cpcorn stover ∆T + mwater CpH20 ∆T msteam = (Hv – Hl) {(24.63MT)(1.33978) kJ/mole-K (170-25)K+(55.01MT)(4.1868 kJ/moleK)(170-25)K+2260.872)} (2793.3-104.89)kJ/mole msteam = msteam = 60.47 MT Boiler (Diesel) mcorn stover Cpcorn stover ∆T + mwater CpH∆T mDiesel = mDiesel = mDiesel = (Hv – Hl)/heating valueDiesel {(24.63MT)(1.33978) kJ/mole-K (170-25)K+(55.01MT)(4.1868 kJ/moleK)(170-25)K+2260.872)} (2793.3-104.89)kJ/mole/(46000) 2.65 MT 44 AgriWaste Paper Industry PROCESS FLOWCHART 45 AgriWaste Paper Industry EQUIPMENT SPECIFICATIONS Hours per day Percent full 24.000 0.650 Shredder feed (MT) density(MT/m3) feed (MT/hour) feed volume (m3) corn stovers input 40.000 1.560 1.667 1.068 total 40.000 1.068 volume of equipment 1.644 Quantity Capacity Height Length Width Power Requirement Dimensions pc/s m3 m m m kW 1.000 1.644 1.677 1.400 0.700 1.119 Material of Construction: • • • Low alloy cast Grid Lock, Lower Grid Bars & Lower Breaker Bar Low alloy cast Top Discharge Grid (incorporating variable faceplate) Stainless steel blade and body Duster feed (MT) density(MT/m3) feed (MT/hour) feed volume (m3) corn stovers input 40.000 1.560 1.667 1.068 total 40.000 1.068 volume of equipment 1.644 Dimensions Quantity 1.000 pc/s Capacity 1.644 m3 Height 1.667 m Length 1.400 m Width 0.700 m Power Requirement 1.119 kW Material of Construction: • Stainless steel construction in compact design with trough type trays 46 AgriWaste Paper Industry input NaOH water total volume of equipment feed (MT) 1.196 8.774 9.970 Mixer1 density(MT/m3) 1.040 1.000 Quantity Capacity Height Diameter Power requirement 1.000 0.636 1.480 0.740 0.559 feed (MT/hour) 0.050 0.366 feed volume (m3) 0.048 0.366 0.413 0.636 Dimensions pc/s m3 M M kW Material of Construction: designed as a compact, water pressure-tight unit including propeller and integrally cast installation bracket for the attachment on the square guide tube • Motor housing and propeller made stainless steel • Digester input feed (MT) density(MT/m3) feed (MT/hour) feed volume (m3) corn stovers 39.880 1.560 1.662 1.065 caustic soda 1.196 1.040 0.050 0.048 water 8.774 1.000 0.366 0.366 total 49.850 1.479 volume of equipment 2.275 Dimensions Quantity 3.000 pc/s Capacity 2.275 m3 Height 2.263 m Diameter 1.131 m Material of Construction: • Incoloy alloy 800 is used, must have high strength and resist oxidation, carburization, and other harmful effects of hightemperature exposure. 47 AgriWaste Paper Industry Boiler feed (MT) density(MT/m3) feed (MT/hour) feed volume (m3) water input 65.333 1.000 2.722 2.722 total 65.333 2.722 volume of equipment 4.188 Dimensions Quantity 1.000 pc/s Capacity 4.188 m3 Height 2.773 m Diameter 1.414 m Material of Construction: • Novel steel construction solid-fuel firing boiler for civil heating applications comprises a space portion defined by side, bottom, cover, front and rear walls forming therein an interspace for water to be heated Blow Tank input pulp feed (MT) 49.850 total 49.850 density(MT/m3) 0.720 feed (MT/hour) 2.077 2.885 volume of equipment 4.438 Dimensions Quantity 1.000 pc/s Capacity 4.438 m3 Height 2.287 m Diameter 1.352 m Material of Construction: • feed volume (m3) 2.885 Solid stainless steel 48 AgriWaste Paper Industry Washers 1 pulp input feed (MT) 49.850 density(MT/m3) 0.720 feed (MT/hour) 2.077 feed volume (m3) 2.885 water 71.214 1.000 2.967 2.967 total 121.064 5.852 volume of equipment 9.003 Dimensions Quantity 1.000 pc/s Capacity 9.003 m3 Height 1.470 m Length 3.500 m Width 1.750 m Power Requirement 2.24 kW Material of Construction: • Stainless Steel with plastic segments Screens feed (MT) density(MT/m3) feed (MT/hour) feed volume (m3) pulp input 25.922 0.720 1.080 1.500 water 26.696 1.000 1.100 1.100 total 52.318 2.600 volume of equipment 4.000 Dimensions Quantity 1.000 pc/s Capacity 4.000 m3 Height 1.280 m Length 2.500 m Width 1.250 m Power Requirement 0.746 kW Material of Construction: • Stainless steel construction and four blade hydrofoil spider 49 AgriWaste Paper Industry input pulp sodium hypochlorite sol'n total volume of equipment feed (MT) 32.521 1.987 34.508 Bleacher density(MT/m3) 0.720 1.097 feed (MT/hour) 1.355 1.097 feed volume (m3) 1.882 0.075 1.957 3.012 Dimensions Quantity 1.000 pc/s Capacity 3.012 m3 Height 2.485 m Diameter 1.242 m Power Requirement 1.119 kW Material of Construction: • Stainless steel input pulp sodium hypochlorite soln water total volume of equipment feed (MT) 34.508 49.298 0.000 83.806 Washer 2 density(MT/m3) 0.720 1.097 1.000 Dimensions Quantity 1.000 pc/s Capacity 5.953 m3 Height 1.416 m Length 2.900 m Width 1.450 m Power Requirement 1.119 kW Material of Construction: • Stainless Steel with plastic segments 50 feed (MT/hour) 1.428 2.054 0.000 feed volume (m3) 1.997 1.872 0.000 3.869 5.953 AgriWaste Paper Industry input pulp alum rosin talc starch water total volume of equipment feed (MT) 41.395 2.463 2.463 4.226 2.955 38.244 91.745 Refiner density(MT/m3) 0.561 0.881 1.073 1.746 0.561 1.000 feed (MT/hour) 1.725 0.103 0.103 0.176 0.123 1594 feed volume (m3) 3.174 0.116 0.096 0.101 0.219 1.594 5.200 8.001 Dimensions Quantity 1.000 pc/s Capacity 8.001 m3 Height 3.441 m Diameter 1.721 m Power Requirement 0.746 kW Material of Construction: • Welded stainless steel input starch talc water total volume of equipment Quantity Capacity Height Diameter Power Requirement feed (MT) 4.226 2.463 5.914 12.603 Mixer2 density(MT/m3) 0.561 1.746 1.000 1.000 0.952 1.693 0.846 0.559 Dimensions pc/s m3 m m kW Materials of Construction: designed as a compact, water pressure-tight unit including propeller and integrally cast installation bracket for the attachment on the square guide tube • Motor housing and propeller made stainless steel • 51 feed (MT/hour) 0.176 0.103 0.246 feed volume (m3) 0.314 0.059 0.246 0.619 0. 0.952397403 AgriWaste Paper Industry input Treated pulp total volume of equipment feed (MT) 91.745 91.745 Fourdrinier Machine density(MT/m3) 0.720 feed (MT/hour) 3.823 feed volume (m3) 5.309 5.309 8.168 feed (MT/hour) 0.103 feed volume (m3) 0.085 0.085 0.131 Dimensions Quantity 1.000 pc/s Capacity 8.168 m3 Height 0.454 m Length 6.000 m Width 3.000 m Power Requirement 2.237 kW Material of Construction: • Open stainless steel head box; cantilevered stainless fourdrinier with top granite rolls and rubber lined bottom rolls, forming box, plain foils suction foils and suction boxes, cantilevered suction couch, wire return rolls, wire stretch, wire guides. input paper total volume of equipment feed (MT) 2.463 2.463 Packaging density(MT/m3) 1.201 Dimensions Quantity 1.000 pc/s Capacity 0.131 m3 Height 0.046 m Length 2.400 m Width 1.200 m Power Requirement 0.75 kW Materials of Construction: • Stainless steel body and sharp stainless steel blade 52 AgriWaste Paper Industry Water Tank input feed (MT) density(MT/m3) feed (MT/day) water 232.863 1.000 232.863 total 232.683 feed volume (m3) 232.863 232.863 volume of equipment 358.250 Water Tank Quantity 5.000 pc/s Capacity 71.650 m3 Height 7.146 m Diameter 3.762 m Material of Construction: • Tanks made of corrugated low carbon galvanized steel, lined with hot bonded food-grade polymer NaOCl Tank input NaOCl solution total feed (MT) 1.987 density(MT/m3) 1.097 feed (MT/2wks) 59.621 1.987 feed volume (m3) 54.349 54.349 volume of equipment 83.613 NaOCl Tank Quantity 1.000 pc/s Capacity 83.613 m3 Height 7.523 m Diameter 3.762 m Material of Construction: • High density liner polyethylene tanks, modeled tank use for aggressive corrosive chemicals 53 AgriWaste Paper Industry Figure 11. Equipment Layout 54 AgriWaste Paper Industry PLANT DESCRIPTION Location Choosing for the best plant site is very difficult. There are several influences that we have to consider in selecting the most suitable site. Among which are the availability of raw materials; climate; utilities such as transportation, communication, water resource; wastewater disposal and dry waste disposal; and most especially the human labor cost. We have decided to construct our plant in Santiago City, Isabela. The availability of the raw material is our main reason of selecting the site, since Isabela have much production of corn based on the data gathered in the Bureau of Agricultural Statistics (see Appendix C). Moreover, another source of raw material is the nearby province Cagayan, which only takes 3 hours getting there. From the data that we have gathered from Bureau of Agricultural Statistics, the Cagayan Valley Region (Region 2) is one of the largest corn producers in the country. Also, the accessibility of transportation facilities, the roads and the highways are in good quality so it offers some advantages for the delivery of raw materials and finished goods. Furthermore, the cost is minimal for labor and there is an adequate supply of human resources. Provincial taxes are also low. Figure 8. Plant Location Map 55 AgriWaste Paper Industry Plant Size The total land area of our plant is 6,496.36 m2. The plant has the perimeter of 322.40 m with the length and width of 80.6 m. The total building area is 4,942 m2 and a free space of 1,554.20 m2. The plant follows the building and space ratio of 70% and 30% respectively. AgriWaste Paper Industry will consist of the following: Administration Building (2 floors) – 278 m2 General Manager Office w/ Executive Secretary Room & Rest Room HR, Purchasing and Cashier Department Marketing and Finance Department Canteen Clinic Reception Area or Lobby Company Files Room Conference Room Seminar Room (for future expansion) Comfort Rooms Process Plant – 956.02 m2 Boiler House Repair and Maintenance Room Production Office w/ CR (Plant Head & Process Engineers) Laboratory w/ CR (Quality Control Head & Lab Analysts) Comfort Room Warehouse (Raw Materials) – 2,995.14 m2 Office Fillers Storage Warehouse (Finished Goods) – 237 m2 Office w/ Comfort Room Power House – 64 m2 Guard House w/ CR – 12 m2 Waste Water Treatment Plant – 400 m2 56 AgriWaste Paper Industry Figure 12. Plant Layout 57 AgriWaste Paper Industry Figure 12a. Plant Layout 58 AgriWaste Paper Industry Figure 12b. Plant Layout 59 AgriWaste Paper Industry ORGANIZATIONAL AND FINANCIAL STUDY ORGANIZATIONAL CHART In a business operation, the whole of the industry consists of various subsystems and activities. The company has been proposed that a chosen organizational structure will be designed to accomplish effectively the objective of the company. The company will adopt the basic form of organization which is through departmentalization. The group work took into account the various tasks of the subsystems so that there will be no overloading or under loading of works so as to optimize each person’s capacity to do the works. AgriWaste Paper Industry consists of 86 employees, working on eight hours per day basis. For the personnel in the production like production workers, process engineers, repair and maintenance, warehouse assistance, forklift operators and the security personnel and nurses, shifting schedules will be implemented to accommodate the continuous production of bond paper. Figure 9. Organizational Chart 60 AgriWaste Paper Industry JOB DESCRIPTION General Manager Functions The general manager of the company shall initiate the organization’s objectives and policies as well as formulate plans and programs. He/She is responsible for the overall direction and control of the company’s entire operation. Also, he/she is liable for the Quality Management System and achievement of its objectives as signified in the quality policy. The General Manager also analyzes the act, decision and relation needed. He/She is directly responsible to the board or the successful achievement of organization’s objectives. It thus becomes the central task of the manager to reconcile differences in approach, timing, effort, interest and to harmonize individual goals to contribute to organizational goal. Qualifications Male/Female, between 40 to 50 years of age. At least 10 years of excellent experience in managerial work. Executive Secretary Functions The secretary takes down notes and dictations and supplies the manager or his/her superior with up-to-date appointments. He/she keeps the minutes of the meetings and submits the same thereafter. He/she records the works of the manager and transmits the policies of the department where he/she belongs. Qualifications Male/Female, 21 to 30 years of age. Graduate of 4 years course with excellent typing skills and has the knowledge in computer software. With at least 3 years of experience. HR Manager Functions The HR Manager is responsible for the overall directions and control of human resources services and activities and for the effective implementation of the company’s programs. Qualifications Male/Female, 30 to 35 years of age. Graduate of Management Course with at least 5 years of excellent experience of handling employees. HRD Staff Functions The company will hire two HRD staffs. They will facilitate hiring, time keeping and will be in charge of the benefits and records of the employees. Qualifications Male/Female, 25 to 30 years of age. College graduate from a respective university. 61 AgriWaste Paper Industry Nurse Functions He/she is in charge of looking after and caring for the health of the employees of the company. This person also keeps back of the health records and the health history of the employees. Qualifications Male/Female, 23 to 35 years of age. Must be a graduate of medical course and with license. Financial Manager Functions The financial manager is responsible for the management of all financial activities of the corporation, coordinates in the financing act, manage financing operations, and ensure proper fund management through practical use of all available investment and financing tools. He/she actively participates in the company’s profitability at all times. Qualifications Male/Female, 21 to 25 years of age. Accounting graduate or any related course from a reputable school. Have four years experience. Board passer is advantage but not as requirement. Chief Accountant Functions The chief accountant reports to the financial manager the financial situation of the company. It also oversees the proper allocations of funds. Qualifications Male/Female, 21 to 28 years of age. Graduate of BS Accountancy. Must be a board passer and have two years experience. Computer Software knowledge is a must. Purchasing Supervisor Functions The purchasing supervisor is responsible of supervising the purchase of needed equipment, raw materials and materials procurement fines. Qualifications Male/Female, between 25 to 30 years of age. Must be graduate of Industrial Engineering with at least 3 years of experience and computer literate. Accounting Staff Functions The accounting staffs help in keeping maintaining records of accounting records of the company, financial statements, analysis of accounts and also responsible for the technical reports on the financial to be kept as record of the company. Qualifications Male/Female, 21 to 28 years of age. Graduate of 4 year course with knowledge in basic accounting and computer software application. 62 AgriWaste Paper Industry Purchasing and Payroll Staff Functions Purchasing and payroll staffs are responsible in purchasing tools needed in the company such as office supplies. They are also responsible for allocating the salaries of the company employees. Qualifications Male/Female, 21 to 28 years of age. Graduate of any accounting course. Must have computer software knowledge. Production Manager Functions He is the one responsible for the sufficient and quality supply of finished product. He supervises plant operations intensely quality control and sees to it that a safe working environment is maintained in the plant site. Qualifications Male, 25 to 35 years of age. Must be a chemical engineering graduate and have at least 5 years experience in handling plant operation. QC Head Functions The quality control head is responsible in supervising the production of high quality product and reports to the production manager for any problem or improvement of the product to be produced. Qualifications Male/female, 23 to 30 years of age. Must be a chemical engineering graduate and have two years of experience. Laboratory Analyst Functions There will be three lab analysts for the production and one for the raw materials. They are responsible for testing the raw materials and finished goods to know whether they met the set quality standards. They also perform other duties asked by the quality control head. Qualifications Male/Female, at least 21 years of age. Graduate of BS Chemistry or Chemical Engineering. Must have the knowledge in computer software and board passer. Experience is an advantage. Plant Head Functions The plant head is responsible in overseeing the plant operations including maintenance of safe working environment in the plant site. Also responsible for the sufficient and quality production. Qualifications Male, 25 to 30 years of age. A graduate of BS Chemical Engineering course and board passer. Must have at least 3 years of experience. 63 AgriWaste Paper Industry Process Engineer Functions The process engineers are the one responsible in the monitoring of the quality and quantity being produced in the operation. They are also responsible in directing the mechanics in any trouble done during the operation. Qualifications Male/Female, 22 to 28 years of age. Must be a Chemical Engineering graduate or an Industrial Engineering graduate with experience in monitoring of industrial process. Board passer is a must. Production Laborers Functions They are the people in charge of the operation involve in the production process. They are under the supervision of the process engineers and so required to report to the plant head. Qualifications Male/Female. 25 to 35 years of age. Must have at least four years of experience in working in any industry. Janitors Functions Janitors are responsible for the cleanliness of the plant, all the buildings, and the open areas of the company’s premises. They ensure the work environment is clean enough for work and they may also take part in running errands when needed. Qualifications Male/Female, 20 to 30 years of age. Hardworking, responsible and punctual. Security Personnel Functions They are the people responsible for protecting and keeping the company premises safe and secure, for assuring peace and order within the walls of the company. Qualifications Male in good health, strong, ready to work and hard working. Mechanics Functions The mechanics is the aid of mechanical engineer. The company will hire three mechanics. They will personally repair whatever equipment in trouble including the trucks and utility vehicle. Qualifications Male, at least 21 years of age. Graduate of any related courses with knowledge in industrial equipment. Experience is not necessary but an advantage. 64 AgriWaste Paper Industry Electricians Functions There will be three electricians hired by the company. They facilitates the electrical maintenance and repair of the plant including the administration building. Qualifications Male, at least 21 years of age. Graduate of any two-year electrical course. Experience is an advantage. Warehouse Head Functions He is responsible for looking after and managing the warehouses. He controls the finished goods and raw materials that go in and out of the warehouse. Qualifications Male, 30 to 35 years of age. Must have at least 4 years experience with good moral character. Warehouse Assistant Functions Responsible in assisting the warehouse head. He acts as the security guard of the warehouse. Qualifications Male, 25 to 30 years of age. Must have experience, in good health, strong, ready to work and hard working. Drivers Functions They are the people in charge in the transporting raw materials to and from the company and also in charge of transporting the product to the consumers. Qualifications Male/Female, 23 to 35 years of age. Has at least one year experience in driving trucks and must hold a professional driver’s license. Forklift Operators Functions Forklift operators are the drivers responsible in transporting raw materials to be loaded in the equipment and finished goods to be stored in the warehouse. Qualifications Male, 25 to 30 years of age. Have a good driving skills and must know how to operate the forklift equipment. Driver’s license is a must. Marketing Manager Functions The marketing manager is responsible for the overall directions and coordination of sales and customer services and for ensuring that the customer requirements are met through the review of contracts. He/she develops marketing plans, strategies, as well as the promotion of company’s product. 65 AgriWaste Paper Industry Qualifications Male/Female, 30 to 35 years of age at least 5 years of excellent experience. Must be computer literate. Marketing Staff Functions The marketing staffs are the one responsible in keeping the record of sales and production of the company. They are also responsible in doing technical reports needed for the prospect customers and assist also the customers. Qualifications Male/Female, 21 to 28 years of age. A graduate of any Marketing course. Have a basic knowledge in communication skills and computer software. Sales Representatives Functions The sales representatives are composed of two persons. They are the one assisting and persuading prospective customers to buy a commodity in a face to face situation. Thus, they must equip themselves of sales knowledge for an efficient performance. Qualifications Male/Female, 21 to 25 years of age. Graduate of four years course with excellent communication skills and pleasing personality. 66 AgriWaste Paper Industry POLICIES, RULES AND PROCEDURES Personal The advancement of the employee with the organization depends on how he makes the most of various opportunities offered by the company and how well he performs his duties and responsibilities. Hiring In order to maintain its reputation of providing the highest quality of work with in a target schedules, the company needs competent employees to maintain day-to-day operations thus, achieving its business objectives. The employee’s success is the company’s success. For this reason, the company is careful in selecting its employees by giving written examination and personal interviews. Also, conducts follow up on references. Other factors are ability, experience, training, intelligence, character, and health. The applicants are required to pass for their medical examination conducted by a physician. Promotion As a policy, the company offers all employees the chance to be in higher position in office which more responsibilities but higher payment on the basis of demonstrated ability, diligence and professional consistence. Wage Policy Management upholds the principles of equal work. Company wage rate compare fairly with those other firms in the industry. Generally, the rate pay depends on the position of the employee and his effectiveness of work. Salary increase is recommended by the supervisor based on the merits of promotion. Basically, the company will render a 5% increase in salary annually. Payment of Salaries All employees will be paid on a monthly basis and will receive their salary every th 15 and end of the month. 67 AgriWaste Paper Industry GANTT CHART OF PRE-OPERATING ACTIVITIES 2006 ACTIVITIES Oct Nov Dec Jan 1. Approval of the study 2. Registration of the company Security and Exchange Commission Department of Trade and Industry 3. Plant Site Acquisition 4. Fencing and Land Dev't 5. Rental of Office Space 6. Application for an ECC (DENR) 7. Hire Manpower 8. Registration with the SSS, BIR, PhilHealth etc. 9. Office Supplies Acquisition 10. Registration with the Intellectual Property Office 11. Plant and Bldg Construction 12.Transfer to the Office Building 13. Ordering of Plant Equipment 14. Arrival of Plant Equipment 15. Installation of Plant Equipment 16. Purchase of Transport Vehicles 17. Training Personnel 18. Purchase of Raw Materials 19. Trial Run 20. Laboratory Testing 21. Marketing Strategy 22. Start of the Operation Figure 10. Gantt Chart 68 Feb Mar Apr May Jun Jul Aug Sep Oct AgriWaste Paper Industry APPENDICES Appendix A. Historical and Projected Demand Table Historical Demand Year Population (ages 4-69) Consumption (7 pcs paper/personyear) Demand (pcs/ person/ year) Demand (MT / Year) Population of Region II Population of Isabela 1995 57,184,874.0 2555 146107353070 660,405.24 2,536,035.00 1,160,721 1996 58,952,993.0 2555 150624897115 680,824.53 2,614,447.55 1,196,610 1997 60,447,018.0 2555 154442130990 698,078.43 2,680,704.57 1,226,935 1998 61,941,046.0 2555 158259372530 715,332.36 2,746,961.73 1,257,260 1999 63,435,071.0 2555 162076606405 732,586.26 2,813,218.76 1,287,586 2000 64,933,190.0 2555 165904300450 749,887.44 2,879,657.35 1,317,994 2001 66,410,802.0 2555 169679599110 766,951.79 2,945,186.49 1,347,986 2002 67,888,417.0 2555 173454905435 784,016.17 3,010,715.76 1,377,978 2003 69,366,031.0 2555 177230209205 801,080.55 3,076,244.99 1,407,970 2004 70,847,695.0 2555 181015860725 818,191.69 3,141,953.84 1,438,045 2005 71,836,686.0 2555 183542732730 829,613.15 3,185,813.61 1,458,119 2006 73,702,095.5 2555 188308854119 851,156.02 3,268,540.80 1,495,982 2007 75,179,053.5 2555 192082481809 868,212.82 3,334,040.94 1,525,961 69 AgriWaste Paper Industry Projected Demand Population (ages 4-69) Consumption (7 pcs paper/personyear) Demand (pcs/ person/ year) Demand (MT / Year) Population of Region II Population of Isabela 2008 76,656,011.5 2555 195856109499 885,269.61 3,399,541.08 1,555,940 2009 78,132,969.5 2555 199629737189 902,326.41 3,465,041.22 1,585,919 2010 79,609,927.5 2555 203403364879 919,383.21 3,530,541.36 1,615,898 2011 81,086,885.5 2555 207176992569 936,440.01 3,596,041.49 1,645,877 2012 82,563,843.5 2555 210950620259 953,496.80 3,661,541.63 1,675,856 2013 84,040,801.5 2555 214724247949 970,553.60 3,727,041.77 1,705,834 2014 85,517,759.5 2555 218497875639 987,610.40 3,792,541.91 1,735,813 2015 86,994,717.5 2555 222271503329 1,004,667.20 3,858,042.05 1,765,792 2016 88,471,675.5 2555 226045131019 1,021,723.99 3,923,542.19 1,795,771 2017 89,948,633.5 2555 229818758709 1,038,780.79 3,989,042.33 1,825,750 Year Appendix B. Sample Computations Historical and Projected Demand of Paper Year 1995 Population = 57,184,874 Consumption = 7 * 365 pcs paper/person-year = 2555 pcs paper/person-year Demand (MT of paper/Year) = (Population*Consumption) / 500pcs* 2.26kg/ream*1MT/1000kg = 146,107,353,070 / 500 * 2.26 * 1/1000 = 660,405.24 MT of paper/Year Market Share Year 2007 Population = 75,179,053.54 70 AgriWaste Paper Industry Consumption = 7 pcs-paper * 365 = 2555 pcs-paper/person-year Demand = Population * Consumption = 192,082,481,809 pcs/person/year Demand (MT/Year) = 192,082,481,809 500pcs* 2.26kg/ream*1MT/1000kg = 868,213 Production = 13,891.41 MT of paper /Year Market Share = Production / Demand = (13,891.41 / 868,213) *100 = 1.60 % Price Inventory of Raw Materials Corn Stovers (6 months) Pre-operating period Beginning Inventory (BIpre-op) = 0 Usage = Corn Stover input from Material Balance * 30days operation = 40 MT * 30 = 1,200.00 Ending Inventory (EIpre-op) = (BI2007) = Usage2007 * 6months/12 = Corn Stover input from Material Balance * 360 = 40 * 360 * 6/12 = 7,200 Purchase = EI + Usage – BI = 7,200 + 1,200 – 0 = 8,400.00 Price (Php/Ton) = 50 Php/Ton Beginning Inventory (BI), Php = 0 * Price = 0 Usage (Php) = Price * Usage = 50 * 1,200 =60,000.00 Php Ending Inventory (EI), Php = BI2007 = Usage2007,php / 2 = (Price * Usage2007)/2 = (50 * 14,400)/2 = 360,000.00 Purchase = Usage + EI – BI = 60,000.00 + 360,000.00 – 0 = 420,000.00 71 AgriWaste Paper Industry Year 2007 Beginning Inventory (BI2007) = EIpre-op = 7,200 Usage = Corn Stover input from Material Balance * 360 days = 14,400 Ending Inventory (EI2007) = (BI2008) = Usage2008 * 6months/12 = Corn Stover input from Material Balance * 360 = 40 * 360 * 6/12 = 7,200 Purchase = EI + Usage – BI = 7,200 + 14,400 – 7,200 = 14,400 Price (Php/Ton) = 50 Php/Ton Beginning Inventory (BI), Php = EIphp, Php = 360,000.00 Usage (Php) = Price * Usage2007= 50 * 14,400 = 720,000.00 Php Ending Inventory (EI), Php = BI2008 = 360,000.00 Purchase = EI + Usage – BI = 360,000.00 + 720,000.00 – 360,000.00 = 720,000.00 NaOH (1 month) Pre-operating period Beginning Inventory (BIpre-op) = 0 Usage = Caustic soda input from Material Balance * 30days operation = 1.20 MT * 30 = 35.89 Ending Inventory (EIpre-op) = (BI2007) = Usage2007 * 1month/12 = Caustic soda input from Material Balance * 360 = 1.20 * 360 * 1/12 = 35.89 Purchase = EI + Usage – BI = 35.89 + 35.89 – 0 = 71.78 Price (Php/Ton) = 15,000 Php/Ton Beginning Inventory (BI), Php = 0 * Price = 0 Usage (Php) = Price * Usage = 15,000 * 35.89 = 538,380.00 Php Ending Inventory (EI), Php = BI2007 = Usage2007,php / 12 = (Price * Usage2007)/12 = (15000 * 430.70)/12 = 538,380.00 72 AgriWaste Paper Industry Purchase = EI + Usage – BI = 538,380.00 + 538,380.00 – 0 = 1,076,760.00 Year 2007 Beginning Inventory (BI2007) = EIpre-op = 35.89 Usage = Caustic soda input from Material Balance * 360 days = 430.70 Ending Inventory(EI2007) = (BI2008) = Usage2008 * 1month/12 = (Caustic soda input from Material Balance * 360)1/12 = (1.20 * 360)1/12 = 35.89 Purchase = EI + Usage – BI = 35.89 + 430.70 – 35.89 = 430.70 Price (Php/Ton) = 15,000 Php/Ton Beginning Inventory (BI), Php = EIpre-op, Php = 538,380.00 Usage (Php) = Price * Usage = 15,000 * 430.70 = 6,460,560.00 Php Ending Inventory (EI), Php = BI2008 = Usage2008,php /12 = (Price * Usage2008)/12 = 549,147.60 Purchase = EI + Usage – BI = 549,147.60 + 6,460,560.00 – 538,380.00 = 6,471,327.60 Variable Transport Shredder Year 2007 Mass (kg) = corn stover input = 40 MT * 1000 = 40,000kg Gravity = 9.81 m/s2 Force = m * g = 40,000 * 9.81 = 392400 kg-m/s2 Distance = 4 m Work = Force * Distance = 392400 * 4 = 1569600 kg-m2/s2 Power = Work / Time = (1569600 / 300)Watt *(1/1000)kW = 5.23 kW 73 AgriWaste Paper Industry Consumption (kWh/day) = Power * Hours/day = 5.23kW * [(300sec/3600) hour * 24] day = 10.46 Consumption (kWh/Yr) = Consumption (kWh/day) * 360 = 941.76 Equipment Specifications Percent full – 65% Shredder Input Corn Stovers = 40 MT/day = 40 / 24hours = 1.667 MT/hour Density of corn stover = 1.560 MT/m3 Total volume of Input = Input / Density = 1.667 / 1.560 = 1.068 m3 Total Volume of Shredder = 1.068 / 0.65 = 1.644 m3 Duster Input Corn Stovers = 40 MT/day = 40 / 24hours = 1.667 MT/hour Density of corn stover = 1.560 MT/m3 Total volume of Input = Input / Density = 1.667 / 1.560 = 1.068 m3 Total Volume of Duster = 1.068 / 0.65 = 1.644 m3 Mixer 1 Input Sodium Hydroxide (NaOH) = 1.196 MT/day = 1.196 / 24hours = 0.050 MT/hour Water (H2O) = 8.774 MT /day = 8.774 / 24hours = 0.366 MT/hour 74 AgriWaste Paper Industry Density of NaOH = 1.560 MT/m3 Density of H2O = 1.00 MT/m3 Total Feed Volume = Input Feed / Density = (0.050/1.560) + (0.366/1.00) = 0.413 m3 Total Volume of Mixer = 0.413 / 0.65 = 0.636 m3 Equipment Optimization Shredder Year 2007 Total feed input (MT/hr) = 1.6667 Maximum Feed Capacity Shredder = 1.6667/0.65 full= 2.5641 Percentage = (2.5641/2.2436) * 100 = 65% Duster Year 2007 Total feed input (MT/hr) = 1.6667 Maximum Feed Capacity Shredder = 1.6667/0.65 full= 2.5641 Percentage = (2.5641/2.2436) * 100 = 65% Price Inventory of Finished Goods Price of bond paper will increase by 1% every five years Pre-operating period Beginning Inventory (BIpre-op) = 0 Production = 38.06 MT/day * 30days operation = 1,141.76 MT Ending Inventory (EIpre-op) = (BI2007) = Production2007 * 1/12 = (38.06 MT/day * 360 days operation) /12 = 1,141.76 75 AgriWaste Paper Industry Sales (MT) = Production + Ending Inventory – Beginning Inventory = 1,141.76 + 1,141.76 – 0 = 2283.52 Price / kg(Php/kg) = 37.62 Sales (Php) = Price * Sales = 37.62 Php/kg * (2062.44 *1000) = 85,905,971Php Year 2007 Beginning Inventory (BI2007) = EIpre-op = 1,141.76 Production = 38.06 MT/day * 360days operation = 13701.11 MT Ending Inventory (EI2007) = (BI2007) = Production2007 * 1/12 = (38.06 MT/day * 360 days operation) /12\ = 1141.76 Sales (MT) = Production + Ending Inventory – Beginning Inventory = 13701.11 + 1141.76 – 1,141.76 = 13701.11 Price / kg(Php/kg) = 37.62 Sales (Php) = Price * Sales = 37.62 Php/kg * (2062.44 *1000) = 515,435,828 Php Water Projection. Pre-operating period Variable (MT) = total water used in the process * 30days operation = 6,985.88 MT Fixed (MT) = total number of personnel * water consumption = 86 * 0.2 = 516 MT Total water consumption (MT) = Variable + Fixed = 5,732.24 + 516 = 7,501.88 MT = 7,501.88 m3 76 AgriWaste Paper Industry Total Water Cost (Php) = 7,501.88 m3 * 12 Php/m3 = 90,022.53 Php Electricity Consumption Air conditioner unit Number of Unit = 6 Power Requirement = 1.00 kW Hours/day = 8.00 hrs/day Total Power Requirement = Power Requirement * Number of Unit = 1.00 kW * 6 = 6 kW Consumption (kWh) = Total Power Requirement * Hours/day =6*8 = 48 kWh Cost/kWh = 8.40 Php/kWh Cost/Day = Cost/kWh * Consumption (kWh) = 8.40 * 48 = 403.2 Cost/day Electricity Projection Year 2007 Fixed (kWh/Year) = 362,272 Variable (kWh/Year) = 4998125 Total (kWh/Year) = 4998125 + 362,272 = 5360398 Cost/kWh = 8.50 Total Cost / Year = 5360398 * 8.50 = Php 45,563,381 Fuel Projection Diesel Fuel Year 2007 Consumption/Yr (MT) = 952.78 Cost/L = 29 Php/L Cost/Year = Consumption * Cost/kg * 1000 = 22,781,513 Php 77 AgriWaste Paper Industry Raw Material Transportation Year 2007 Kilometer = 400 Km Fuel Consumption = 0.36 Liter/Km Cost/Liter = 29.00 Php/L Cost/Year = Kilometer * Fuel Consumption * Cost/Liter * 2 = 8352 Php/Year Finished Goods Transportation Year 2007 Kilometer = 300 Km Fuel Consumption = 0.36 Liter/Km Cost/Liter = 29.00 Php/L Cost/Year = Kilometer * Fuel Consumption * Cost/Liter * 2 = 37584 Php/Year Pre-operating Salaries and Fringe Benefits Assumption: 25% Fringe Benefits General Manager There will be only one general manager. Salary = Php 100,000.00 Months = 11 Total Salary = 100,000 (11) = Php 1,100,000 Fringe Benefits = 0.25 (Php 1,100,000) = 275,000 Total Compensation = Total Salary + Fringe Benefits = 1,100,000 + 275,000 = 1,375,000 Executive Secretary There will be only one executive secretary. Salary = Php 13,000.00 Months = 11 78 AgriWaste Paper Industry Total Salary = 13,000 (11) = Php 143,000 Fringe Benefits = 0.25 (Php 143,000) = 37,750 Total Compensation = Total Salary + Fringe Benefits = 143,000 + 37,750 = 178,750 Land and Building Cost Building Cost Administration (2 floors) Area = 278 m2 Cost / Area = Php 15,000.00 Cost (Php) = Area * Cost/Area + (10,000 * Area) = 278 * 15,000 + (10,000 * 278 ) = 6,950,000 Php Depreciation = Total Cost / Useful Life = 6,950,000 / 40 = 173,750 Land Cost Length = 80.60 m Width = 80.60 m Total Land Area = Length * Width = 80.60 m * 80.60 m = 6,589.55 m2 Perimeter = (Length * 2) + (Width * 2) = (80.60 * 2) + (80.60 * 2) = 322.40 m Building Space = 4,942 m2 Free Space = Total Land Area – Building Space = 6,589.55 m2 - 4,942 m2 = 1,647.39 Cost/Area (Php/m2) = 750.00 Total Land Cost = Total Land Area * Cost/Area = 6,589.55 m2 * 750.00 = Php 4,942,165 79 AgriWaste Paper Industry Land Improvement Cost Gate Perimeter = 10 m Cost/Perimeter = Php10,000 Cost (Php) = Perimeter * Cost/Perimeter = 10 * 10,000 Fence Perimeter = total perimeter of land – 10 m of gate = 258.20 – 10 = 248.20 m Cost/Perimeter = 2,500 Php/m Cost (Php) = Perimeter * Cost/Perimeter = 248.20 * 2,500 = 620,500 Equipment Cost Shredder FOB, USD = 1,360 FOB, PHP = 1,360 * 55 = 74,800 C&F = FOB (Php) * 1.05 = 754,800 * 1.05 = 78,540 CIF = C&F * 1.01 = 78,540 * 1.01 = 79,325 Service = CIF * 1.005 = 79,325 * 1.005 = 79,722 Import Duty = Service * 1.12 = 79,722 * 1.12 = 89,289 Delivery Cost = Rate is based from AJRJ Trucking = 24,116 Php 80 AgriWaste Paper Industry Factors account for Solid processing Equipment from Perry’s Handbook Solids Processing 0.19 0.07 0.13 0.03 0.33 0.03 0.1 0.3 Total = 1.18 Total Price = ((C&F + CIF + Service + Import Duty) Factor) + Delivery Cost = ((78,540 + 79,325 + 79,722 + 89,289) 1.18) + 24,116 = 409,830 Php Useful Life = 40 Depreciation = Total Price / Useful Life = 409,830 / 40 = 10,246 Taxes and Licenses Land and Building Cost Total Cost (Php) = Php 39,852,841 Tax/License (1.5%) = 39,852,841 * 0.015 = 597,792.62 Insurance (Building) (1.5%) = 35,179,500 * 0.015 = 527,693 Breakeven Break-even Volume = V Revenue = Cost or Profit = 0 Selling Price * Break-even volume = Revenue Cost of Sales (such as Raw Materials, Electricity, Water etc.) + Administration and Marketing Expenses (Sales Tax, Delivery, etc.,) 81 AgriWaste Paper Industry Break-even Selling Price = P Sales Volume *Break-even Selling Price = = Revenue Cost of Sales (such as Raw Materials, Electricity, Water etc.) + Administration and Marketing Expenses (Sales Tax, Delivery, etc.,) Year 2007 Break-even Volume = (307,543,700 + 43,662,708 )/37.62 = 9,335,630 Break-even Selling Price = (307,543,700 + 43,662,708 )/ 9,335,630 = 153,801 Payback Period ∑Profit = Equity Year Profit Todate Profit 1 P1 P1 2 P2 P1 + P2 . . . . . . n-1 Pn-1 P1 + P2 + .... Pn-1 n Pn P1 + P2 + .... Pn-1 + Pn Payback Period = {(n+1) + Equity – [P1 + P2 + ......... Pn-1]}/ Pn PAYBACK PERIOD Equity Year 2007 2008 2009 2010 2011 191,000,000 Profit 108,735,660 89,986,776 86,713,173 83,637,483 78,477,282 To date Profit 108,735,660 198,722,437 285,435,610 369,073,093 447,550,374 Payback Period = 1 + (195,000,000 – 108,735,660)/ 89,986,776 = 1.91 year 82 AgriWaste Paper Industry Rate of Return i = Rate of Investment in % Equity = PY1/(1+i)1+ PY2/(1+i)2+ PY3/(1+i)3+ ........ PY10/(1+i)10 + PY11/(1+i)11 By Trial and Error: i % = 47.93% 83 AgriWaste Paper Industry Appendix C. Isabela Corn Production 84 AgriWaste Paper Industry 85 AgriWaste Paper Industry 86 AgriWaste Paper Industry 87 AgriWaste Paper Industry 88 AgriWaste Paper Industry 89 AgriWaste Paper Industry 90 AgriWaste Paper Industry 91 AgriWaste Paper Industry 92 AgriWaste Paper Industry 93 AgriWaste Paper Industry 94 AgriWaste Paper Industry 95 AgriWaste Paper Industry 96 AgriWaste Paper Industry 97 AgriWaste Paper Industry 98 AgriWaste Paper Industry 99 AgriWaste Paper Industry 100 AgriWaste Paper Industry 101 AgriWaste Paper Industry 102 AgriWaste Paper Industry 103 AgriWaste Paper Industry 104 AgriWaste Paper Industry 105 AgriWaste Paper Industry 106 AgriWaste Paper Industry 107 AgriWaste Paper Industry 108 AgriWaste Paper Industry 109 AgriWaste Paper Industry 110 AgriWaste Paper Industry 111 AgriWaste Paper Industry 112 AgriWaste Paper Industry 113 AgriWaste Paper Industry ENVIRONMENTAL STUDY WASTEWATER TREATMENT PLANT To ensure that plants discharged are within acceptable quality, a wastewater treatment plant comprised of primary and secondary biological treatments stages is operated at 24 hours a day, 7 days a week. The proposed wastewater treatment system basically consists of primary and secondary treatment. Primary treatment includes the upgrading of existing facilities to improve solids collection and chemical treatment with clarifier as solid separator unit. Bulk of the wastewater is being is being generated by the economy filter mated rate of 25 m3/hr. At present set up, wastewater from this source is served by settling tank prior to its discharge. To improve the collection of entrained fibers from this particular source for possible re-use in the process, this existing tank was upgraded to provide for settling chambers. The final discharge from this settling chamber is to be combined with the rest of the discharges from other minor source points in the manufacturing process and will be diverted to an equalization tank/sump pit by gravity. In the equalization tank a coagulant chemical is added to help coagulate fine solids into larger particles. Then the wastewater is pumped to the top of the central steel column, where flocculant is injected and particles agglomerate to form larger flocs. The clarifier is equipped with surface and bottom scrapers driven by a gear motor. The bottom unit scrapes off the settled sludge at the bottom of the clarifier to the conical bottom for withdrawal. A sludge pump is used to withdraw the solids in the conical bottom for dewatering to screw press. The clarified effluent to prevent floating particles from being carried by the effluent (floating solids are not expected but if occurring, the baffles will limit the particles). From here, the effluent passes through the overflow weirs that are 114 AgriWaste Paper Industry attached to the concrete effluent channel. The overflow weirs are installed to ensure an even overflow of water to the channel. The secondary treatment shall employ an aerobic Batch type Activated Sludge System with BOD reduction efficiency of 95-98%. The clarified wastewater from primary treatment will flow by gravity to a holding tank with hydraulic retention time of (5) hours. From this tank, wastewater shall be pumped to the main process tank for biological treatment. The Fill, React/Aerate, Settle, Decant cycle time at the Main Process Tank will take 12 hours to complete. Sludge shall be generated from both primary and secondary treatment. All generated sludge shall be pumped into the inlet of the screw press and shall be carried to the outlet via a rotating screw conveyor. The screw conveyor is designed such that the volume decreases towards the outlet. As sludge is carried to the outlet, the sludge is compressed and water is pressed out of the sludge in the wet slotted screens. The sludge then exists the other side of the screw press at 15% dryness. Water drained from the screw press is returned to the clarifier. 115 AgriWaste Paper Industry ENVIRONMENTAL IMPACT ASSESSMENT INITIAL ENVIRONMENTAL EXAMINATION REPORT For MANUFACTURE OF BOND PAPER FROM CORN STOVER Project Title A. GENERAL INFORMATION Our project location will be located at Santiago City, Isabela. Santiago City is a first class city and now on the road to highly urbanize status, Santiago City is a metropolis with 1,160,721 inhabitants comprised of 37 barangays, the city is blessed with an almost equal distribution of urban and rural areas. This explains perhaps Santiago City viability in terms of industrialization based on a stable agricultural base. Strategically located in the heart of the province of Isabela, approximately 328 kilometers northeast of Manila, the city covers a total land area of 255 square kilometers. The city held tremendous promise, not only in its natural resources but also in its potentials in agri-based industries which help sustain its vital role in agricultural production. B. PROJECT DESCRIPTION 1. Project Ownership: Corporation 2. Project Site: 2.1. Land 2.1.1. Total Land Area: 4,166.70 m2 2.1.2. Land Area to be occupied: 3. Population (1995): 3,062.95 m2 1,160,721 116 AgriWaste Paper Industry C. INDUSTRY DESCRIPTION AND PRACTICES Pulp and paper are manufactured from raw materials containing cellulose fibers, generally agricultural residues. In developing countries, about 60% of cellulose fibers originate from non-wood raw materials such as Corn stovers. Manufactured pulp is used as a source of cellulose for fiber manufacture and for conversion in the paper and cardboard. The manufacture of pulp for paper and cardboard employs mechanical including thermo chemical and chemical methods. Mechanical pulping separates fiber by such methods as disk abrasion and billeting. Thermo mechanical pulps, which are used for making products such as newsprints, are manufactured from raw materials by the application of heat, in addition to mechanical operations. Chemical pulps are made by cooking (digesting) the raw materials using the Kraft (sulfate) and sulfite processes. Kraft processes produce a variety of pulps used mainly for packaging and high strength papers and boards. Rice straw are cooked with caustic soda to produce brown stock which is then washed with water to remove cooking (black) liquor for the recovery of chemicals and energy. Mechanical pulp can be used without bleaching to make printing papers for applications in which low brightness is acceptable – primarily, newsprint. C.1. Waste Characteristics The significant environmental impacts of the manufacture of pulp and paper result from pulping. In some processes, sulfur compounds and nitrogen oxides are emitted to the air, and organic compounds, nutrients are discharged to the wastewater. 117 AgriWaste Paper Industry C.1.a. Air Emissions Pulping process, such as the mechanical and thermo mechanical methods, generate significantly lower quantities of air emissions. Steam and electricity-generating units using coal or fuel oil emit fly ash, sulfur oxide and nitrogen oxides. Coal burning can emit fly ash at the rate of 100 kg/t of ADP. C.1.b. Solid Waste The principal solid wastes of concern include wastewater treatment sludges (50 – 150 kg/t of ADP). Solid materials that can be reused include waste paper, which can be recycled, and bark, which can be used as fuel. Lime sludge and ash may need to be disposed of in an appropriate landfill. D. Pollution Prevention and Control The unchlorinated material is essentially black liquor that has escaped the mill recovery process. Some mills are approaching 100% recovery. Industry developments demonstrate that total chlorine-free bleaching is feasible for many pulp and paper products but cannot produce certain grades of paper. The adoption of these modern process developments, wherever feasible, is encourages. 118 AgriWaste Paper Industry Pollution prevention programs should focus on reducing wastewater discharges and on minimizing air emissions. Process recommendations ma include the following: Use energy-efficient pulping process wherever feasible. Acceptability of less bright products should be promoted. For less bright products such as newsprint, thermo mechanical processes and recycled fiber may be considered. Minimize the generation of effluents through process modifications and recycle wastewaters, aiming for total recycling. Reduce effluent volume and treatment requirements by using dry instead of wet debarking; recovering cooking chemicals by recausticizing the smelt from the recovery furnace; and using high-efficiency washing and bleaching equipment. Minimize unplanned or nonroutine discharges equipment failures, human error, and faulty maintenance procedures, by training operators, establishing good operating practices, and providing sumps and other facilities to recover liquor losses from the process. Minimize sulfur emissions to the atmosphere by using a low-odor design black liquor recovery furnace. Use energy-efficient processes for black liquor chemical recovery, preferably aiming for a high solid content (say 70%). E. Target Pollution Loads Implementation of cleaner production processes and pollution prevention measures can yield both economic and environmental benefits. 119 AgriWaste Paper Industry For emissions, the target is 1.5 NOx per ton for both kraft and sulfite processes; for mechanical and chemimechanical process used in newsprint manufacture, 260 nanograms per joule (ng/J) of NOx for coal; 130 ng/J for oil; and 86 ng/J for gas used as fuel. Wastewater generation rates should not exceed 50 m3/t of ADP, and levels of 20 m3/t of ADP (for product) should be targeted. For paper mills, effluent discharges should be less than 5 m3/t of ADP. F. Treatment Technology F.1 Wastewater Treatment Wastewater treatment typically includes (a) neutralization, screening, sedimentation, and flotation/hydrocycloning to remove suspended solids and (b) biological/ secondary treatment to reduce the organic content in wastewater and destroy toxic organics. The wastewater first undergoes a treatment by passing through a screen, will screen out the coarse materials. After screening, the wastewater shall undergo flotation, which will separate the light-density materials; then it will enter a flow equalization tank, which will regulate the pH of wastewater and its flow rate. The treated wastewater is then pumped to a sedimentation tank that will help settle down large particle. To cope with the increasing wastewater volume due to increase in the pulp production, the treatment facility will also be upgraded. The waste fibers that have been separated from the wastewater will be sold to companies that treat the sludge of paper industries and the clarified water is free to flow into the river. Table 5.1 Effluent Standards1 Color 1 PCU 150 DENR Administrative Order 35, Table 2A: Effluent Standard 120 AgriWaste Paper Industry Temperature Ph COD Settleable solids BOD5 TSS TDS Surfactants Oil/grease Phenolic subs. Total coliform G. o C rise mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L MPN 100mL 3 6.5 – 9 100 0.5 50 70 1000 5.0 5.0 0.1 10000 Emissions Guidelines Emissions level for the design and operation of each project must be established through the environmental assessment (EA) process on the basis of country legislation and Pollution Prevention and Abatement Handbook. The guidelines are expressed as concentration to facilitate monitoring. Dilution of air emissions or effluent to achieve these guidelines is acceptable. All the maximum levels should be achieved for at least 95% of the time that the plant or unit is operating, to be calculated as a proportion of annual operating hours. Liquid Effluents from New Pulp and Paper Manufacturing Parameter PH COD AOX Maximum value 6-9 300 mg/l and 15 kg/t for kraft and CTMP pulp mills; 700 mg/l and 40 kg/t for sulfide pulp mills; 10mg/l and 5 kg/t for mechanical and recycled fiber pulp; 250 mg/l for paper mills 40 mg/l and 2 kg/t (aim for 8 mg/l and 121 AgriWaste Paper Industry 0.4 kg/t for retrofits and for 4 mg/l and 0.2 kg/t for new mills) and for 4 mg/l for paper mills H. Monitoring and Reporting Frequent sampling may be required during start-up and upset conditions. Once a record of consistent performance has been established, sampling for the parameters listed in these documents should be as described below. Monitoring of air emission for opacity (maximum level of 10%) should be continuous; daily monitoring should be conducted for hydrogen sulfide and annual monitoring for other pollutants. Liquid effluents should be monitored for the listed parameters at least daily, or more often when there is a significant process change. Monitoring data should be analyzed and reviewed at regular intervals and compared with the operating standards so that any necessary corrective actions can be taken. Records of monitoring results should be kept in an acceptable format. The results should be reported to the responsible authorities and relevant parties, as required. I. ENVIRONMENTAL IMPACT ASSESSMENT Santiago City is our project location. The area is not erosion prone. There is no existing natural hazardous in the area (landslide, subsidents). There is no project beside or near the shore line. Magat River and Diadi River are the water bodies that you can found beside or near the shoreline. There are few trees within the project site. It will be transferred to another place or we will plant trees in replacement of the trees cleared for construction of our plant. We do not pose any threat to Magat River and Diadi River because we have our own wastewater treatment. There are also no vegetation clearing, no air pollution produce from the equipment installed. 122 AgriWaste Paper Industry There will be an increase in economic activity in the area for we will be hiring employees living near the vicinity. The cultural norms or morals and lifestyle of local inhabitants will not be affected by the project. ENVIRONMETAL POLICY AgriWaste Paper Industry has defined an environmental policy with the principles of managing the way in which it runs its business to minimize environmental impacts and to become certified by the ISO 14001 (Environmental Management System), the company set the following environmental policy: AgriWaste Paper Industry strives to manufacture quality bond paper that utilizes agricultural wastes which complies to the standard environmental regulations set by the DENR (Department of Environment and Natural Resources) Agriwaste Paper Industry aims to continuously improve environmental performance and our company is committed to minimize our environmental impact. 123 AgriWaste Paper Industry AgriWaste Paper Industry is committed to follow all the requirements in relation with the environmental protection, and to strive to meet all the regulatory and legislative laws which comply with the local and international standard. AgriWaste Paper Industry would provide document objectives, outline of the process and responsibilities, manuals, action plans of the company and its procedure to employees and other members of the company to become aware of the environmental concerns of the company. AgriWaste Paper Industry will create a website of the company which will provide information’s open to the public. Also, distribution of free manuals and pamphlets to the people visiting our company. MATERIAL SAFETY DATA SHEET (MSDS) OF BOND PAPER SECTION #1 — Hazardous Ingredients/Identity Information TRADE NAME: AgriWaste Paper Industry OSHA PEL ACGIH TLV Other Limits Recommended % This product contains no hazardous or toxic substance as defined in 29 CFR 1910.1200, and is considered to be an article as defined in this same reference. SECTION #2 — Physical/Chemical Characteristics Boiling Point N/A Specific Gravity (H2O=1)- 0.6-0.7 Vapor Pressure (mm Hg) - N/A 124 AgriWaste Paper Industry Melting Point -N/A Vapor Density (AIR=1) - N/A Evaporation Rate –N/A Solubility in Water :> 0.5% 1 hour at room temperature Appearance and Odor: No odor. SECTION #3 — Fire and Explosion Hazard Data Flash Point (Method Used):N/A Flammable Limits: Approx 450° F LEL: N/A UEL: N/A Extinguishing Media: Water Special Fire Fighting Procedures: N/A Usual Fire and Explosion Hazards: N/A N/A = Not Applicable/Not Available SECTION #4 — Reactivity Data Stability: Unstable Incompatibility (Materials to Avoid): Strong acids, alkalies, oxidizing agents Hazardous Decomposition or Byproducts: CO, CO2 as combustion products Hazardous: Polymerization May Occur Conditions to Avoid: N/A Will Not Occur: X SECTION #5 - Health Hazard Data Route(s) of Entry: N/A Inhalation: N/A 125 AgriWaste Paper Industry Skin: N/A Ingestion: N/A Health Hazards (Acute and Chronic): N/A Carcinogenicity: N/A OSHA Regulated: N/A SECTION #6 - Precautions for Safe Handling and Use Steps to be Taken in Case Material is Released or Spilled: N/A Waste Disposal Method: Incinerate or landfill in accordance with local, state or federal regulations Precautions to Be Taken in Handling and Storing: N/A DISCLAIMER: Although reasonable care has been taken in the preparation of this document, we extend no warranties and make no representations as to the accuracy or completeness of the information contained therein, and assume no responsibility regarding the suitability of this information of the user’s intended purposes or for the consequences of its use. Each individual should make a determination as to the suitability of the information for their particular purpose(s). 126 AgriWaste Paper Industry 127