MAPUA INSTITUTE OF TECHNOLOGY AT LAGUNA

Academic Year 2015 2016

PRODUCTION OF METHYLENE DIPHENYL DIISOCYANATE

FROM BENZENE VIA AMINE PHOSGENATION

Andrade, Ehmmarie L.
Baluca, Maie H.
Sabino, Jenny Rose B.

Engr. Ria Grace Abdon

A Plant Design Project submitted

in partial fulfilment of the requirements for the degree of

Bachelor of Science in Chemical Engineering

Table of Contents
CHAPTER 1. MARKET STUDY
I.
Introduction
A. General Overview
B. Objectives
II. Situational Analysis
A. Supply and Demand Analysis
i.
World Demand and Consumption
ii.
Demand Based on Import
B. Philippine Laws and Regulations
i.
Department of Environment and Natural Resources (DENR) Policies
ii.
16th Congress Senate Bill No. 1336 (Isocyanates Regulatory Act)
C. Competitors
III.
Target Market
IV.
Availability of Raw Materials
V.
SWOT Analysis
VI.
Preliminary Economic Evaluation
VII. Marketing Strategy
VIII. Company Profile
A. About Us
B. Our Vision
IX.
Plant Location
A. Categories in Choosing a Plant Location
B. Possible Locations
CHAPTER 2. TECHNICAL STUDY
I.
Process Selection
II.
Process Description
A. Aspen Hysys Simulation
B. Overall Mass Balance
References

3
4
5
5
6
7
8
10
12
14
17
18
20
22
22
23
24
24
25
31
32
36
36
39
40

CHAPTER 1
MARKET STUDY

I.

Introduction
A. General Overview
3

Methylene

diphenyl

diisocyanate

(MDI)

or

1-isocyanato-4-[(4-

isocyanatophenyl)methyl]benzene is one of the aromatic diisocyanates which is used in polyurethane

production. It is formed from the condensation of aniline and formaldehyde with phosgene. There are
two forms of MDI: Pure MDI and Polymeric MDI (PMDI). Pure MDI is used in the production of
products like elastomers, sealants, adhesives and coatings found in items such as paints, glues, and
weather resistant materials while, PMDI is a highly useful product to produce a wide variety of rigid,
flexible, semi-rigid and polyisocyanurate and thermoset foams. Some additional uses of MDI in
polyurethanes include insulation, footwear, sports and leisure products, and some specialty flexible
foams (American Chemistry Council, 2015). Physical properties of MDI are summarized in Table 1.

Table 1.1. Physical Properties of MDI (Ashida, 2007)

In the market, MDI is classified as isocyanates. Isocyanates, which is widely used in
polyurethane applications, includes aliphatic isocyanates such as hexamethylene diisocyanate (HDI),
isophorone diisocyanate (IPDI) or 4,4 dicyclohexyl diisocyanate (HMDI), and aromatic isocyanates
such as toluene diisocyanate (TDI) and diphenylmethane diisocyanate (MDI). The aliphatic isocyanates
are used to a much lesser extent, and only for special applications. On the other hand, aromatic
isocyanates are highly commercialized in various forms and functionalities (Ionescu, 2005).
According to Ceresana (2015), the global demand for polyurethane increase by 4.5% per year.
Asia-pacific is the prime market for polyurethane that accounts for 44% of the global demand. Due to
4

the rising demand of polyurethane, the demand of isocyanate increases. The global capacity of
isocyanate is expected to increase by more than 3 million tonnes of the current 5 million tonnes until
2020 and over 81% of the new capacities will be found in the Asia Pacific. According to Transparency
Market Research (2013), the global polyurethane market is expected to reach 66.4 billion dollars by
2018.
B. Objectives
General Overview

This study is primarily aimed at designing a Methylene Diphenyl Diisocyanate manufacturing

plant in the Philippines.

Specific Overview
The feasibility of the plant will be determined in terms of the goals:

To conduct a market study that will discuss the demand, plant capacity, market share and target

market.
To develop a plausible process design for MDI production.
To provide design work such as process diagram and description, heat and material balance,

II.

instrumentation diagram and;

To maximize the potentials of each equipment in the production.
Situational Analysis
Methylene diphenyl diisocyanate (MDI) was developed due to toluene diisocyanate (TDI)

toxicity problems. And, its chemistry provides greater opportunities to modify and optimize for
difference polyurethane specifications. The non-distilled or crude MDI mixture, or polymeric MDI,
consists mainly of 4,4'-diphenylmethane diisocyanate, 2,4'- and 2,2'- isomers, and condensation
products with more than two aromatic rings (Vilar, 2004).
5

A. Supply and Demand Analysis

i.
World Demand and Consumption
Methylene Diphenyl Diisocyanate (MDI) is an aromatic diisocyanate widely used in
construction, refrigeration, textiles, transport, furniture and bedding, footwear, industrial and others.
The largest demand of MDI is in construction while the largest consumption of MDI is the rigid foam
for construction. Rigid foams create one of the most known and energy efficient insulations. It can
significantly can cost cut the energy while making commercial and residential properties more
convenient and efficient.

Figure 1.1. World MDI Demand (left) and MDI Consumption (right) (Davies, P., 2012)

ii.

Demand based on Import

The import data of isocyanate is used to provide the import data of MDI assuming that there is

49% of MDI in the global market of isocyanates (Reuters, 2015). There is a great demand for MDI in
the Philippines which is evidently shown by the import data provided by the Department of Trade and
Industry from years 2006 to 2014. Also, there is no export of any type of isocyanates such as MDI.
Year
2006

Trade Value, $
13,076,330

Quantity of Isocyanates, kg
5,899,892

Quantity of MDI, kg
2,890,947
6

2007
13,341,033
5,020,749
2,460,167
2008
16,504,098
5,197,710
2,546,878
2009
17,234,948
7,118,924
3,488,273
2010
18,606,929
6,643,966
3,255,543
2011
25,127,623
8,310,799
4,072,292
2012
30,815,951
10,318,141
5,055,889
2013
19,980,045
7,501,861
3,675,912
2014
28,589,519
10,741,534
5,263,352
Table 1.2. Import Data of Isocyanates and MDI in the Philippines (DTI, 2015)
Figure 2 shows that the demand for MDI is increasing for the following years as the trend line
for the graph of kg MDI per year is sloping upwards (positive slope). This indicates that the product
has a high marketability today and for the following years to come in the Philippines.
6,000,000
5,000,000
4,000,000
3,000,000
Quantity, kg 2,000,000
1,000,000
0

Year

Figure 1.2. Demand trend for MDI in the Philippines based on Import
B. Philippine Laws and Regulations
i.

Department of Environment and Natural Resources (DENR) Policies

The Department of Environment and Natural Resources (DENR), through its Environmental

Management Bureau (EMB), has created a compilation and inventory of chemicals and chemical
substances that can be used throughout the country, as regards to the implementation of the Republic
Act No. 6969 known as Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990.
7

The national inventory is known as the Philippine Inventory of Chemicals and Chemical Substances
(PICCS).
Manufacturers, importers, distributors, and users of chemicals or chemical substances that are
included in the PICCS need no longer secure clearance from the DENR, provided that their chemicals
or chemical substances are not listed in the Philippine Priority Chemicals (PCL) and not subject to
Chemical Control Order (CCO). The chemicals or chemical substances that are not included in the
PICCS cannot be manufactured, imported, distributed, or used unless have undergone the PreManufacture and Pre-Importation Notification (PMPIN) process.
Methylene Diphenyl Diisocyanate with a CAS No. of 26447-40-5 can be searched and found on
the

PICCS,

through

the

PICCS

Online

Database

version

2011

(http://emb.gov.ph/internal/CasREgistry.aspx). Therefore, these chemicals can be manufactured and

distributed throughout the country. PICCS is updated every five years containing around 44,000
chemical substances.

ii.

16th Congress Senate Bill No. 1336 (Isocyanates Regulatory Act)

Entitled as An Act Regulating the use of Isocyanates in the Workplace, this is filed on August

22, 2013 by Defensor Santiago, Miriam. This bill seeks to address the health and safety concerns posed
by isocyanates in the workplace.

Section 3. Requirements for a Workplace Using Isocyanates - An employer must observe the
following requirements if the employer uses isocyanates in the place of business
(A) Obtain Material Safety Data Sheets (MSDSs) from the supplier to know exactly what type of
isocyanates they are working with and what precautions to take;
(B) Obtain technical bulletings that may provide additional health and safety information;
(C) Use a system designed to generate a minimum amount of fluid mist. It is prohibited to use compresses
air to blow clean parts covered with isocyanate as the air pressure causes the isocyanates to be airborne;
(D) Install complete enclosures or splash guards, depending on the operation, to keep the isocyanates
contained and away from the operator;
(E) Use exhaust ventilation to prevent accumulation and recirculation of airborne contaminants is hereby
required;
(F) Workers must use a full-facepiece, supplied-air respirator and must wear personal protective clothing
such as hooded coveralls, chemical-resistant gloves, and footwear to prevent dermal absorption during
the spray application process; and
(G) Such other requirements prescribed by the Secretary of Labor and Employment.

C. Competitors

Wanhua Chemical Group Co., Ltd.

It is the largest manufacturer of MDI in Asia Pacific. They give importance to innovation,
product quality and customer service. The two main goals of the company are to become a chemical
producer and to become an international player in the market. For 2013, the total assets are 3,111,368
in ten thousand yuan and gross profit margin on sales of MDI is 36.33%. Wanhua Chemical Group
announced a decrease in price of polymeric MDI by 2, 600 yuans/ton to 12,400 yuans/ton and a
9

decrease also in the price of pure MDI by 2,900 yuans/ton to 18,500 yuans/ton for June 2015 (Wanhua,
2015).

Shanghai Liansheng Isocyanate Co., Ltd.

It was set up in March 2003 by a joint venture of BASF Aktiengesellschaft, Huntsman China
Investment and Shanghai Huayi Group and Shanghai Chloro-Soda Chemical. The companys capacity
at that time was 240 kilo tonnes per annum. On July 2014, a ceremony was held to start the
construction of a new plant at Shanghai Chemical Industry Park to double the production of the
venture. The total investment amount is 740 million dollars (Sinopec Shanghai Gaoqiao Company,
2015).

BASF (South Korea) Co., Ltd.

It is one of the Koreas top ten chemical companies. It was established in 1998 and had
provided Korea with four business units: Chemicals, specialties, polyurethanes and thermoplastics. One
of the strength of BASF companies is the Verbund system, where the heat released by production
processes can be used as energy in other plants and their by-products can serve as a feedstock
elsewhere. The strategies employed in the companies are adding value as one company, aligning
innovation to customers needs and forms the best team. The total assets of the companies amounted to
71,359 million in 2014 (BASF Report, 2014).
10

Nippon Polyurethane Industry Co., Ltd.

It is a professional manufacturer of polyurethane products and raw materials in Asia such as
MDI, TDI and HDI. They offer the assurance of timely and stable supply, together with a total
commitment to cost reduction via efficient production operations and raw materials process controls.
They are known as a highly reliable urethanes supplier. The capital of the company is 11.5 billion yen
and total assets are 55.5 billion yen (UTECH Asia, 2015).

Mitsui Chemicals Inc.

A Japanese owned company that deals with performance materials, petro and basic chemicals
and other functional polymeric materials. Chemistry, Innovation and Dreams are main the keywords
the represents the targets and ambitions of the company. The mission of the company is to provide
high-quality products and services to customers through innovations and creation of materials and
products while keeping in harmony with global environment. The first quarter sales of 2015 reached
379.1 billion yen. The current assets of the company are 717.2 billion yen (Mitsui Chemicals Group,
2015).
III.

Target Market

11

The Philippines is completely dependent to the supply of MDI from the importation of foreign
countries. Since 80% of MDI is used in polyurethane production (Reuters, 2015), the target market of
the plant is the polyurethane manufacturers. In Table 3, the target companies are shown.
Companies

Address

Products

Betafoam Corporation

Dasmarinas Technopark,
Governor's Drive, Paliparan I,
Dasmarinas, Cavite

Polyurethane foams

SEA Olympus Building, AC

Cortes Ave., Mandaue City,
Cebu Philippines 6014

Rigid plastic material for structural

insulation system for commercial,
residential and industrial
application

378 Edang Street, Pasay City

Philippines

Waterproofing and installation of

Sprayed Polyurethane Foam on
roofing, chilled water pipes, a/c
ducts and slabs

10 Gyro Street, Light Industry

& Science Park, Barangay
Diezmo, Cabuyao, Laguna

Polyurethane foams

Ikeba Enterprises

308 Producer's Market

Bldg., FTI Complex
Taguig Metro Manila

Polyurethane insulation for

building insulation encapsulation,
roofing protection and many other
applications both-on site and infactory
Polyurethane Insulation

Insulflex Industries, Inc.

# 9 Gregorio Del Pilar

St. Paltok,
Quezon City

H. Cortes Street Brgy.

Tipolo Mandaue City, Cebu

Polyurethane foam for beds,

furniture, packaging, garments,
insulation and automotive industry

EcoFoam Polyurethane
Insulation

Gloscore Philippines,
Inc.

HB Fuller Philippines,
Inc.

Mandaue Foam
Industries, Inc.

12

INOAC Philippines
Corporation

Uratex PhilippinesMultiflex RNC

Philippines, Inc.

RGC Compound, Brgy Pittland

Cabuyao City, Laguna

Polyurethane foam for sealing,

filtering, padding, medical and etc.

Km. 23 East Service Road,

South Super Highway,
Muntinlupa City

Commercial and automotive

polyurethane foam products in the
Philippines

Vemaprene polyurethane for

unique design and construction
Vemaval Compound, Langka
material combining many of the
Road, FTI Complex, Taguig
advantages of rigid plastics,
Taguig Metro Manila
Vemaval, Inc.
metals, and ceramics with the
extensibility of rubber
Table 1.3. Polyurethane Manufacturers in the Philippines (Philippine Companies, 2015)
Uses of MDI in polyurethanes include flexible moulded foam such as car seats, furniture; rigid foams
such as white goods, insulation, building materials, construction; and for automotive such as
dashboards, bumpers, steering wheel, door panels, bumpers/panels (Boustead, 2005). These companies
are large polyurethane manufacturers in the Philippines which supplies for other companies which
offers fabrication, construction and services.
IV.

Availability of Raw Materials

For the first stage of Methylene Diphenyl Diisocyanate (MDI) production, the raw materials

needed are benzene, sulfuric acid and nitric acid. Based on the import and export data from 2010 to
2014, benzene and sulfuric acid is locally available and the supply is too much that the country can able
to gain profit in other country. On the other hand, the export for nitric acid shows that there is not too
much supply locally. Still, nitric acid can be acquired from local manufacturers. In the second stage,
hydrogen has export data and so, it can be obtained locally. For the last stage of production, similar to
13

the situation of nitric acid, phosgene and formaldehyde is being imported. But, there are local
manufacturers which produced this as their by-product.
Year
2010
2011
2012
2013
2014
Year
2010
2011
2012
2013
2014
Year
2010
2011
2012
2013
2014

Year
2010
2011
2012
2013
2014

BENZENE
Import (kg)
Trade Value ($)
Export (kg)
Trade Value ($)
106
1,258
19,453,901
22,528,047
663
13,601
24,209,049
31,344,112
60
1,077
29,232,209
30,932,159
502,499
1,058,110
24,379,606
31,538,598
275
3,201
22,050,000
27,933,725
SULFURIC ACID
Import (kg)
Trade Value ($)
Export (kg)
Trade Value ($)
504,684,256
168,594,663
428,932,669
9,466,518
656,809,247
218,828,336
291,284,493
12,124,096
710,033,448
211,179,187
46,673,737
1,443,400
687,767,630
203,762,739
98,388,851
3,192,807
521,287,589
175,540,635
321,152,159
10,207,439
NITRIC ACID
Import (kg)
Trade Value ($)
Export (kg)
Trade Value ($)
6,171,256
2,852,477

5,561,572
2,802,297

3,937,793
1,993,977

3,590,585
1,620,611

3,775,114
1,784,429

Table 1.4. Raw Materials for Benzene to Nitrobenzene (1st Stage)

HYDROGEN
Import (kg)
Trade Value ($)
Export (kg)
Trade Value ($)
1,828,414
4,963,245
5,666,747
37,759,077
2,230,962
26,209,115
5,784,565
49,698,062
3,646,072
22,853,726
26,328,033
30,711,393
5,117,059
6,375,664
1,029,216
18,107,230
6,512,373
6,777,674
1,672,533
12,093,632
nd
Table 1.5. Raw Materials for Nitrobenzene to Aniline (2 Stage)

Year
2010
2011
2012
2013

Import (kg)
5,698,204
3,844,242
4,375,536
4,387,300

FORMALDEHYDE
Trade Value ($)
Export (kg)
1,650,715

1,217,173

1,399,615

1,458,755

Trade Value ($)

14

2014
Year

3,633,788

1,366,554

PHOSGENE
Import (kg)
Trade Value ($)
Export (kg)
Trade Value ($)
2010
66,727
318,293

2011
41,412
221,854

2012
52,223
179,566

2013
19,726
176,784

2014
117,138
150,558

Table 1.6. Raw Materials for Aniline to Methylene Diphenyl Diisocyanate (3rd Stage)

The table below shows the list of companies that able to supply the raw materials for Methylene
Diphenyl Diisocyanate (MDI).
Raw Materials
Benzene
Sulfuric Acid
Nitric Acid
Hydrogen
Formaldehyde
Phosgene
Sodium Hydroxide

Companies
Petron Bataan Refinery
Marubeni Philippines Corporation
Dow Chemical Company
Air Liquide Philippines
Petron Bataan Refinery
Petron Bataan Refinery
Marubeni Philippines Corporation
Table 1.7. Company of the Supplier

15

V.

SWOT Analysis
Strengths

SWOT MATRIX

Opportunities

1.
2.
3.
4.

The first MDI producer the Philippines

Lower price than similar imported product
Decrease in trade deficit
Cost effective process using benzene as the
starting material
S-O Analysis

Weaknesses
1. New in the market and the name has not
been established
2. High start-up cost specifically for safety
3. The plant capacity may not meet all the
needs of potential clients
W-O Analysis

1. Large demand of MDI due to1.1.

Aim for expansion after 10-15 years of 1.1.
Low cost yet effective advertising
Polyurethane companies
success
campaign and marketing efforts, and
existing locally
1.2.
Partnership with the local suppliers
maintain product quality
2. Locally Available Raw
2.1.
Price flexibility
1.2.
Establish partnership with suppliers to
Materials
2.2.
Affordable price
have a production stability
3-1. Generate new jobs for Filipinos
2-1.Product price during start-up is balanced
3-2. Less dependence in import
to the start-up cost
4.1.
Keep up effective production for higher
3-1.Strict following of the schedules
profitability
3-2. Balanced production
4.2.
Meet product demand expectations
Threats
1. Our competitors are large,
multinational chemical
manufacturers

S-T Analysis
1.1.
Established ties with local manufacturers
2-1. Strengthen marketing strategies
3-1. Focus on the local market
4-1. Optimize production process

Table 1.7. SWOT Matrix Analysis

W-T Analysis
1-1. Improve the quality of products and
decrease manufacturing processes costs
2-1. Improve process design and ensure
environmental safety
3-1. Small expansion of plant capacity

VI.

Preliminary Economic Evaluation (Class 5 Estimate)

A. Estimated Plant Capacity and Market Share
In 2014, the total quantity of MDI demand in the Philippines is 5,263,352 kg. Based from

the projection for 2018, the total demand is 6,132,880.911 kg. A plant capacity of
(4,293,016.638) kg will be used in this project, for market share of 70%. The market share is
based on the target market and SWOT analysis.
The ISBL (Inside Battery Limit) cost can be estimated using the following correlation
(Towler & Sinnott, 2008):

C 2=C 1

S2
S1

( )

Where

C2 = ISBL capital cost of the plant with capacity S2

C1 = ISBL capital cost of the plant with capacity S1
n = typically 0.6 for chemical industry

The reference plant used in this project is Nippon Polyurethane Industry Co., Ltd. The
cost of MDI plant with capacity of 63 kilo tons per year was estimated as 11.5 billion yen /
4390700000 PHP (U-Tech Asia, 2014 & PU Daily, 2014). For a plant capacity of 4.3 kilo tons
per year at year 2018, the ISBL capital cost was calculated as 876,167,173.2 PHP.
The OSBL (Outside Battery Limit) cost can vary from 20% to 50 % of the ISBL cost
depending on the complexity of the process and required support facilities (Towler & Sinnott,
2013). For this project, it is assumed that the OSBL cost is assumed to be 40% of ISBL costs
considering no details of the site are known.
Based on historical and forecasted price of the product, it is anticipated that the proposed
plant will generate of revenue per year. This is based on a product price of 156.7 PHP per kg.

Operating cost is based on the price of the raw materials. Benzene will be supplied by at a price
of 35.6 PHP/kg. The hydrogen will be supplied by with a price of 56.396PHP/kg. Phosgene will
be supplied by at a price of 60.816 PHP/kg. Formaldehyde will be supplied by with a price of
17.787 PHP/kg. Nitric acid will be supplied at a price of 21.075PHP/ kg.
Molar mass

kmol

Capacity, kg

Price, Million Pesos

Benzene
78.11
16383.62
1279724.28
45.558
Nitric Acid
63.01
16383.62
1032331.67
21.76
Hydrogen
2.02
49150.86
99284.72
5.599
Formaldehyde
30.03
16383.62
492000
8.75
Phosgene
98.91
49150.86
4861510.5
295.658
MDI
250.25
16383.62
4300000
673.81
Table 1.8. Capacity of plant and the prices (Stoichiometric ratio and proportion method)
The total operating cost estimated as per year is 377.325M PHP.
ISBL CAPEX
876.167(876167173.2) M PHP
OSBL CAPEX
350.467(350466869.3) M PHP
CONTINGENCY
122.663(122663404.3) M PHP
TOTAL CAPEX
1349.297(1349297447) M PHP
ANNUAL OPEX
377.325 (377325000) M PHP
ANNUAL REVENUE
673.81 (673810000) M PHP
ANNUAL NET INCOME
296.485(296485000) M PHP
PAYBACK PERIOD at 100% Capacity
4.55 Years
Table 1.9. Preliminary Total Capacity Expenditures of the Plant
To estimate the Internal Rate of Return (IRR) for this project, it is anticipated that the
plant will be installed within two years. Hence, capital expenditure is assumed to be equally
distributed in two consecutive years. It is also assumed that the plant will be running at turndown
capacity, e.g. 55% of the normal capacity, on the first year of operation, and 75% of normal
capacity on the second year or operation. Normal capacity will only be attained on the following
years. Minimum acceptable rate of return (MARR) is assumed to be 15%.
0

Year
2016

MPHP
-616.078

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
IRR
Table 1.10. Preliminary Project Cash Flow and IRR

VII.

-616.078
138.601
189.002
252.002
252.002
252.002
252.002
252.002
252.002
252.002
252.002
252.002
252.002
252.002
252.002
252.002
252.002
252.002
25.14%

Marketing Strategy
The target market of this MDI plant is mainly polyurethane industries in the Philippines.

The growing demand of the MDI gives the plant more opportunities to grow in the market. A
good marketing strategy is needed in order for a plant to be recognized in the market.
Objectives and Goals:

To increase sales
To become recognized as a Trusted Methylene Diphenyl Diisocyanate Producing plant
To become the pioneer producer of MDI in the Philippines
To appeal to the customers need through innovation
To expand the companys production to meet the total MDI demand in the Philippines
To establish good partnership with the supplier to have a stable production

Focus Points:

Product

The plant will produce methylene diphenyl diisocyanate from Benzene. The company guarantees
that the customers expectation will be satisfied and will give a good review through safe and
high-quality outputs.

Pricing

The price of the product would depend on the standard price ceiling of the other manufacturers,
but it can be lowered due to absence of freight cost and bulk order.

Sales Promotion

The transaction will be business to business among its prospect clients which will provide the
company with consumers response and a direct communication on the incentive available for
them.

Advertisement

A company website would be developed showcasing the company profile, location, products and
customer reviews. Aside from a company website, the company would also engage in
community service led by the government to appeal to the media.

VIII.

Company Profile

A. About Us
Kapnayan Philippines, Inc. (KPh) is a newly established and first ever MDI-producing
plant in the Philippines using Benzene as feedstock. We cater local polyurethane industries and
provides them high quality products.
As an organization, KPh gives conscious effort to do its part in the nations path towards
success. The innovative approach we used ensures us that we are equipped to provide the
consumers high quality products. The plant operations will provide workers, a tremendous
positive impact to the local community. We are also committed to each and every one of our
customers because it is for them and through them that we are in this business.

B. Our Vision

To engage with competence and responsibility in the industrial business while pursuing to

meet up with the worlds growing demand for sustainability.

To be recognized as a pioneer in the production Mission

The vision will be achieved by:

IX.

Seeking to deliver sustainable products and services in accordance to proper assessment

Developing strategic partnerships to increase development and opportunity

Exercising integrity and professionalism

Caring for the community and its people

Building a global level information infrastructure

Realizing harmonious coexistence between society and the environment

Plant Location

A. Categories in Choosing a Plant Location

Resources It is important that there are available resources and raw materials in the chosen
location for chemical plant. Its biggest advantage is minimizing the cost of the plant such as

transportation and other cost.

Infrastructural Facilities Power, water, communication, transportation and commercial

establishments is included.
Accessibility Locating a plant near the supplier and consumer lessens the transportation

cost. Being accessible attracts more local and foreign investors.

Incentives It is offered by the government which is to attract investors to build businesses
in controlled environment promoting social responsibility and provides community benefits.

Tax, cheaper cost of utilities and other factors are some of the benefits that can be obtained.
Availability of Manpower Skilled workers plays an important role in the growth of the

company.
Climatic Conditions Climatic conditions such as rainfall, drought, and temperature changes
may sometimes affect the productivity and efficiency of the plant.

(Your Article Library, 2015)

Based on the above categories, there are three possible locations available which are the
Hermosa Ecozone Industrial Park (HEIP), First Philippines Industrial Park (FPIP) and Laguna
Technopark Industrial Park (LTI). These are all registered Special Economic Zone (ecozone)
under manufacturing which is provided by the Philippine Economic Zone Authority (DTI-PEZA,
2015).

B. Possible Locations
i Hermosa Ecozone Industrial Park
Hermosa Ecozone Industrial Park (HEIP) is located at Palihan Hermosa, Bataan with a
162-hectares land area. During April to November, the season was dry while rainy on May to

October (hermosa.gov.ph, 2015). It is accessible through Subic Clark-Tarlac expressway

(SCTEx). The distance of HEIP to Petron Bataan Refinery which will be the major supplier of
MDIs raw material is about 40.2 km.

From

Distance (km)

Time of Travel (minutes)

Metro Manila

98.2

115

Subic International Airport

29.4

35

Clark International Airport

53.7

47

Subic Seaport Terminal

Incorporated

25.4

30

Petron Bataan Refinery

40.2

61

Table 1.11. Accessibility of Hermosa Ecozone Industrial Park

Figure 1.3. Distance of HEIP from

Petron Bataan Refinery

HEIP is able to provide quality infrastructure such as power supply, water supply,
centralized waste water treatment plant, communication systems, road network, storm drainage
system and administration building. Electricity is supplied by Peninsula Electric Company
(PENELCO) with a 10MVA substation which is expandable for future purposes. Water supply is

obtained through deep wells and a water recycling facility through a dual piping system with
18,000 cubic meters per day total capacity. Centralized wastewater treatment facility with a
12,000 cubic meters per day capacity is also provided. Communication systems are provided by
Digitel and PLDT which is capable for 1,000 international and domestic lines for voice, fax,
data, video conferencing and internet services. Highway grade roads include 22 m main roads
and 15 m service roads with pedestrian lanes and planting strips. Adequate drainage system
ensures there will no floods. And, administration building which keeps that industrial park
organize and in proper operation.
Benefits can also be obtained in locating in HEIP. Available tax incentives includes
exemption from corporate income tax for four to eight years, exemption from duties and taxes on
imported capital equipment or materials, exemption from export taxes and exemption from value
added tax. The power, sewer and water cost is lower compared outside. Logistic costs can be
lowered because the place is located near the airport and seaport (Science Park of the
Philippines, Inc., 2015).
ii First Philippine Industrial Park
First Philippine Industrial Park (FPIP) is a 457-hectares land area located in Santo Tomas,
Batangas. Dry season occurs from January to April while wet season occurs from May to
December. Another possible supplier of MDIs raw materials is Pilipinas Shell Corporation
Refinery having a distance of 54 km to FPIP. It is accessible through South Luzon Expressway
(SLEX).

From

Distance (in kilometers)

Time (in minutes)

Metro Manila

58.9

68

Ninoy Aquino International

49.6
49
Airport (NAIA)
Manila North Harbour
61.4
81
Port
Pilipinas Shell Corporation
54
64
Refinery
Table 1.12. Accessibility of First Philippine Industrial Park

Figure 1.4. Distance from Pilipinas

Shell Petroleum Corporation Refinery
to First Philippine Industrial Park.

The

infrastructure,

facilities

and

services

available

in

FPIP

are

power,

telecommunications system, water supply, sewerage system, road networks, and general activity
areas. Power is supplied by Manila Electric Company (MERALCO) with substation of 115KV
with an ecozone rate of approximately lesser Php1/kwh. Communication uses fiber-optic
technology and installed underground. Water supply is obtained from deep well for industrial use
with a centralized water distribution system and standby generators. Sewerage facility is
available. Roads are 40 m wide main roads and 23 m wide secondary roads with pedestrian,

bicycle lanes and planting strips. With this, FPIP can be able to facilitate small scale to high scale
operations. They boast manpower quality, labor cost and availability. They also offer end-to-end
solution in the construction of different facility types that is suited for the business needs. Eco
parks inside the FPIP shows the diversity and it implies the care for environment.
In promoting the growth of investment in the country, the government offers incentives
for the investors. The following incentives are: income tax for 4 to 8 years, exemption from
national and local taxes, lieu thereof, special 5% tax rate on Gross Income, Tax credit
substitution, exemption from wharfage dues, and additional deduction from training expenses are
also included (First Philippine Industrial Park, 2015).
iii Laguna Technopark Incorporated
Laguna Technopark Incorporated is located at Bian, Laguna with a 460 hectares land
area. Two types of season are available which the wet and dry seasons are. Wet season occurs
from June to September while dry occurs from November to April. It is accessible via South
Luzon Expressway or by National Road. Uratex Philippines is one of the largest manufacturers
of polyurethane foams for automotive and furniture which uses methylene diphenyl diisocyanate
(MDI) as raw material. Distance from Uratex Philippines located in Muntinlupa City is about
25.7 km.

From

Distance (km)

Travel Time (min)

Uratex Philippines

25.7

33

Metro Manila

44.6

63

Petron Bataan Refinery

183.2

202

Pilipinas Shell Petroleum

Corporation Refinery
Ninoy Aquino International
Airport (NAIA)
Batangas Port

76.7

88

33.9

38

71

55

Table 1.13. Accessibility of Laguna Technopark Incorporated

Figure 1.5. Distance of Uratex

Philippines from Laguna
Technopark Incorporated

Laguna Technopark Incorporated is owned by the two large names in businesses which
are the Ayala Land and Mitsubishi Corporation. Compared other established cities, land cost is
lower. Infrastructures available are the concrete highway roads, integrated landscapes and
pockets of green space in design, communication systems, power substations, public
transportation and shuttle services, domestic and industrial water supply, centralized sewerage
systems, regulating ponds and commercial buildings.

Incentives available are corporate income tax holiday from 4 to 6 years, all local and
national special tax rate on 5% on gross income in lieu, exemption from duties and taxes on
imported raw materials, supplies and equipment, exemption from wharfage dues and export tax
imposed fees, deduction from taxable income of training expenses for labor and management and
tax credit on locally purchased capital equipment and spare parts equivalent to 25% of the taxes
and duties (Laguna Technopark Incorporated, 2014).

CHAPTER 2
TECHNICAL STUDY

I.

Process Selection

Figure 2.1. Schematic diagram showing the principal operations leading to the production of
MDI (Boustead, 2005)

Methylene diphenyl diisocyanante (MDI) is simply produced by the condensation of

aniline with formaldehyde followed by reaction with phosgene. This can be produced starting at
different points in the process after oil refining which are from benzene, from nitrobenzene and
from aniline. From the comparative study, it is economically effective to start from benzene.
Starting
Material

Advantages

Disadvantages

Prices, Php/kg
(2014)

NFPA
Diamond

Explosive
Limit

IDLH
ppm

Nitrobenzene

Aniline

arameters

The stage of the

process and
equipment cost is
lessened.

61.03
(Platts, 2014)

No supply in the
Philippines
More material and
transportation costs

(Micro Market
Monitor, 2015)

61.24

Upper

More equipment
costs

Lower

Instability

Flammability

Benzene

Supply in the
Philippines is
abundant
Less material and
transportation costs
Cost-effective

Health

1.4%

8%

500

1.8%

1.8%

200

20-25
%

100

Supply in the
Philippines is
79.90
limited
(Chem Plan,
3
2 0 1.3%
2014)
More material and
transportation costs
Table 2.1.Raw Materials Prices and Properties (Cameo Chemicals, 2015).

The stage of the

process and
equipment cost is
greatly lessened.

Starting from benzene, there are three parts of production: nitrobenzene production,
aniline production and MDI production. For nitrobenzene production, the commercially used
process is direct nitration of benzene with the use of nitric acid-sulphuric acid mixture. It is
produced in continuous process which is more effective for large plants and has a yield of 9596%. It also offers lower capital cost and more efficient labor usage which is good for starting-up
plants (Maxwell, G. 2005). For aniline production, it has three common exothermic processes
which are hydrogenation of nitrobenzene, nitrobenzene reduction with iron fillings and
ammonolysis of phenol. Based on the comparative study, hydrogenation of nitrobenzene is most
appropriate and most advantageous among the given methods (Maxwell, G., 2005).

Catalytic Hydrogenation

Nitrobenzene reduction with Iron

fillings

Ammonolysis of Phenol

w Materials

Products
- Products

Catalyst

Nitrobenzene and Hydrogen

Nitrobenzene, Iron fillings and

Hydrochloric acid

Phenol and Ammonia

Aniline

Aniline

Aniline

None

Colored iron oxide pigments

Copper or Palladium

Iron metal

Silica-Alumina

More than 99%

90 95 %

80% - 96%

8 to 10 h

Low

Low

Low

High

Uneconomical surpassing the market

for iron pigments

Favorable using phenol route

Simple

Sludge Separation

Diphenylamine, Triphenylamine
Carbazole

Reactions
Yield

action Time
Energy
nsumption
conomic
easibility
Process
eparation

Table 2.2. Aniline Process Comparative Study

For methylene diphenyl diisocyanate (MDI) production,

II.
Process Description
A. ASPEN HSYSY SIMULATION
1st Stage: Benzene to Nitrobenzene

NaOH

Figure 2.3. ASPEN HYSYS Simulation (1st Stage)

The process follows the chemical reaction between benzene and nitric acid in acidic
media (using sulphuric acid).

Figure 2.4. Nitrobenzene Reaction

Benzene together with acid mixture is fed into the nitrator with conversion rate of 97%
(Albinali, A, Al-Kandari, H., Al-Farsi, E., and etc., 2013). The sulfuric acid is not being

consumed during the reaction. Its role is to promote the formation of the nitronium ion and
prevents it from binding with water. Then, it is fed into the separator to obtain the mixtures of
crude nitrobenzene and used sulfuric acid. The crude nitrobenzene is fed to a washer which is
reacted with sodium hydroxide to neutralize small amount of acid it contains. On the other hand,
the used sulfuric acid is fed to acid stripper to re-concentrate the sulfuric acid and be recycled
back to the nitration process. Lastly, the crude nitrobenzene has undergone distillation to produce
desired nitrobenzene concentration (Maxwell, G., 2005).
2nd Stage: Nitrobenzene to Aniline

Figure 2.5. ASPEN HYSYS Simulation (2nd Stage)

Using the nitrobenzene from the first stage, it is heated to change its phase into gas so
that, it can be reacted with hydrogen gas. The process follows the hydrogenation of nitrobenzene.

Figure 2.6. Aniline Reaction

The raw materials are fed into a fluidized-bed catalyst and its conversion is quantitative
depending on the regeneration of the catalyst. Then, the hydrogen gas is allowed to be vent out.
It is fed into a separator to separate water and obtain the desired concentration of the aniline
(Maxwell, G., 2005).
3rd Stage: Aniline to MDI

Figure 2.7. ASPEN HYSYS Simulation (3rd Stage)

Using the aniline from the second stage, the process follows phosgenation process.

Figure 2.8. MDA and MDA Reaction

Since ASPEN HYSYS Simulation has limitations, the two-step reaction is converted to
one-step reaction which is applied as the reaction of the converter. In actual process, there will be
two reactors. For the first reactor, it produces methylene dianiline (MDA). It will undergo
distillation process to concentrate it. For the second reactor, it produces the final product,
methylene diphenyl diisocyanate (MDI). Then, it will undergo stripping process in order to
separate the hydrochloric acid from the final product. Lastly, it will undergo distillation process
to produce the desire concentration (Sulzer, 2015).
B. Overall Mass Balance
From the calculated preliminary production capacity of the plant which is 4.1 kilo
tonnes/yr of MDI, the raw material benzene is computed to be 607.5 kg/h.
For the 1st stage, benzene and mixed acid are the raw materials. The mixed acid ratio
ranges from 32 to 39% nitric acid, 53 to 60% sulphuric acid, 8% water. Hence, the acid masses
are 949.2 kg/h for 64% nitric acid and 1488 kg/h for 98% sulphuric acid. For the washer, the
97% sodium hydroxide needed is 76.35 kg/h. So the nitrobenzene produced is 956.9 kg/h.
For the 2nd stage, hydrogen gas is reacted with nitrobenzene. The hydrogen gas needed is
8625 kg/h following the H2-Nitrobenzene ratio which is 9:1. This is followed in order to ensure
that the hydrogen reacts with the nitrobenzene. So, the aniline produced is 722.1 kg/h
For the 3rd stage, the process is phosgenation which consists of two reactions. For the first
reaction, the formaldehyde needed is 310.2 kg/h. For the second reaction, the phosgene needed is
1134 kg/h. Therefore, the preliminary production capacity was met.

REFERENCES
American Chemistry Council. (n.d.). What are Diisocyanates?. Retrieved from
http://dii.americanchemistry.com/Diisocyanates-Explained/What-Are-Diisocyanates
American Chemistry Council. (n.d.). Polyurethane Applications. Retrieved from
http://polyurethane.americanchemistry.com/Introduction-to-Polyurethanes/Applications
Ashida, K. (2007). Polyurethane and Related Foams. Portland: Cengage Learning.
BASF.

(2014).
BASF
Report
2014.
Retrieved
from
http://www.basf.cl/sac/web/chile/es/function/conversions:/publish/content/chile/corporati
vo/documentos/BASF_Report_2014.pdf

BASF.

(n.d.).
Polyurethane
MDI
Handbook.
Retrieved
http://wwwstage.basf.com/urethanechemicals/pdfs/2000mdihandbook.pdf

from

BASF

Asia
Pacific.
(2012).
BASF
in
Greater
China.
Retrieved
http://www.asiapacific.basf.com/apex/AP/en_GB/content/BJevent/GCJV

from

BASF

Asia
Pacific.
(2012).
BASF
in
Korea.
Retrieved
from
http://www.asiapacific.basf.com/apex/AP/en/content/AP_Regional/1.1_About_Us/1.1.2_
Locations_Asia_Pacific/Korea/Intro

BASF Polyurethanes Asia Pacific. (n.d.). Shanghai BASF Polyurethane Company Limited
(SBPC).
Retrieved
from
http://www.polyurethanes.asiapacific.basf.com/apex/KUAPortal/en/content/web/Basic_
Materials/ProductionSite_Shanghai
Bayer MaterialScience. (2013). Billions invested in growth market Record-setting city. Retrieved
from http://www.materialscience.bayer.com/en/company/sites/shanghai.aspx
BloombergBusiness. (n.d.). Ningbo Wanhua Polyurethanes Co Ltd. Retrieved from
http://www.bloomberg.com/profiles/companies/MANGBZ:CH-ningbo-wanhuapolyurethanes-co-ltd
Boustead, I. (2005). Diphenyl Methane Diisocyanate. Plastics Europe. Retrieved from
http://www.polyurethanes.org/uploads/documents/eco_midi.pdf
Cameo

Chemicals (2015). Database

http://cameochemicals.noaa.gov/

of

Hazardous

Materials.

Retrieved

from

Ceresana. (n.d.). Market Study: Polyurethanes and Isocyanates (MDI & TDI). Retrieved from
http://www.ceresana.com/upload/Marktstudien/brochueren/CeresanaBrochure_Market_Study_Polyurethanes_PUR_and__Isocyanates_MDI-TDI.pdf
Davies, P. (2012). Polyurethanes & Intermediates. Paper presented at the Tecnon OrbiChem
Seminar.
Retrieved
from
http://www.orbichem.com/userfiles/KICHEM
%202012/KICHEM2012_7_Polyurethanes_PD.pdf

Department of Trade and Industry. (2015). Philippine Exports and Imports of Isocyanates for
year 2006-April 2015. AAStocks. (2015). Wanhua Chemical Group Cuts MDI6 Price for
Jun. Retrieved from http://www.aastocks.com/en/stocks/analysis/china-hot-topiccontent.aspx?id=200000437935&type=2&catg=1
ECOFOAM
POLYURETHANE INSULATION. (n.d.). WHAT IS ECOFOAM
POLYURETHANE INSULATION?. Retrieved from http://ecofoam.com.ph/
Environmental Management Bureau. (n.d.). PHILIPPINE INVENTORY OF CHEMICALS AND
CHEMICAL
SUBSTANCES.
Retrieved
from
http://www.emb.gov.ph/portal/eeid/resources/factsheets/tabid/1397/aid/200/default.aspx
First Philippine Industrial Park. (n.d.). Who we are. Retrieved from http://www.fpip.com/
Hermosa. (n.d.). MUNICIPAL PROFILE. Retrieved from http://hermosa.gov.ph/index.php/72about-hermosa/municipal-profile
Huntsman. (n.d.). Huntsman Ramps Operation at Shanghai MDI Plants. Retrieved from
http://ir.huntsman.com/phoenix.zhtml?
c=186725&p=irolnewsArticle&ID=917847&highlight
ICIS.

(n.d.).
Indicative
Chemical
Prices
A-Z.
http://www.icis.com/chemicals/channel-info-chemicals-a-z/

Retrieved

from

ILI KUMHO POLYCHEM. (n.d.). Shareholding and affiliated company. Retrieved from
http://www.kumhopolychem.co.kr/en/01_kumho/partner.asp
NK.PH.
(n.d.).
MANDAUE
FOAM
http://www.ilink.ph/mandauefoam

INDUSTRIES

INC.

Retrieved

from

Laguna

Techno
Park.
(n.d.).
The
Industrial
Estate.
http://lagunatechnopark.com.ph/the-industrial-estate/infrastructures/

Retrieved

from

Linked

in.
(n.d.).
Wanhua
Chemical
Group
Co.,
Ltd.
https://www.linkedin.com/company/wanhua-chemical-group-co-ltd-

Retrieved

from

Maxwell, G. (2005). Synthetic Nitrogen Products. New York: Kluwer Academic/ Plenum
Publishers
Mitsui

Chemicals Asia
Pacific,
Ltd.
(n.d.).
http://ap.mitsuichem.com/corporate/index.htm

About

Mistsui Chemicals Asia Pacific, Ltd. (n.d.). Management

http://ap.mitsuichem.com/corporate/management/index.htm
Mitsui

Us.
Plan.

Retrieved
Retrieved

Chemicals,
Inc.
(2015).
Financial
Summary.
Retrieved
http://www.mitsuichem.com/ir/pdf/event_150731e.pdf?1440147140188

Philippines
Companies.
(n.d.).
Ikeba
Enterprises.
Retrieved
http://www.philippinecompanies.com/companyprofile/62065/ikeba-enterprises

from
from
from
from

PU Daily. (n.d.). ASEAN POLYURETHANE-FAST GROWING & HUGE DEMAND.

Retrieved from http://www.pudaily.com/SpecialNews/static/asean20140709/asean.htm
PU

Daily.
(2013).
TDI-MDI
Market
Weekly
Overview.
Retrieved
http://www.pudaily.com/userfiles/file/Fee%20Download%20Center/China
%20Isocyanates%20Market%20Weekly%20Overview%20(June%208--June
%2014,%202013).pdf

from

P.U. RIGID. (2011). About Us. Retrieved from http://www.purigid.com/about-us.html

Reuters. (2015). Research and Markets: Global Isocyanates Market 2015-2019 with Bayer
MaterialScience, Dow, Huntsman & Yantai Sanjiang Chemical Industry Material
Dominating. Retrieved from http://www.reuters.com/article/2015/01/08/research-andmarkets-idUSnBw085288a+100+BSW20150108
Rodyk.

(2014).
Recent
significant
Deals.
Retrieved
http://www.rodyk.com/usermedia/documents/Rodyk_Reportersept14-Recent
%20Significant%20deals.pdf

from

Science Park. (n.d.). Providing the landscape for business growth. Retrieved from
http://www.sciencepark.com.ph/wp/wp-content/themes/sppi/pdf/HEIP-flyer-English.pdf
Sinha, D.K. (n.d.). Plant Location: 11 Factors that Influence the Selection of Plant Location.
Retrieved from http://www.yourarticlelibrary.com/industries/location-selection/plantlocation-11-factors-that-influence-the-selection-of-plant-location/41072/
Sinopec Shanghai Gaoqiao Company. (n.d.). JV
http://www.sinogpc.com/econtent/gs/fzqj_hzqy.htm

Partners.

Retrieved

from

Sulzer. (n.d.). Separation Technology for the Chemical Process Industry. Retrieved from
www.sulzer.com/ne/-/media/Documents/ProductsAndServices/Process_Technology/Proc
esses_and_Applications/Brochures/Separation_Technology_for_the_Chemical_Process_I
ndustry.pdf
Transparency Market Research. (2013). Polyols and Polyurethanes Market-Global Industry
Analysis, Size, Share, Growth, Trends and Forecast, 2012-2018. Retrieved from
https://chemicalandmaterials.files.wordpress.com/2014/01/polyols-and-polyurethanesmarket-global-industry-analysis-size-share-growth-trends-and-forecast-2012-2018.pdf
Towler, G. & Sinnott, R. (2008). Chemical Enginnering Design. California: Elsevier, Inc.
Uratex Foam. (n.d.). About Us. Retrieved from http://www.uratex.com.ph/about-us/history/
U.S. Environmental Protection Agency. (n.d.). Methylene Diphenyl Diisocyanate (MDI) and
Related
Compounds
Action
Plan
Summary.
Retrieved
from
http://www.epa.gov/oppt/existingchemicals/pubs/actionplans/mdi.html
Utech

Asia.
(2014).
Exhibitor
Details.
Retrieved
asia.com/utechasia2014/exhibitorshow/exhibitor-list/968

from

http://www.utech-

Wanhua
Chemical
Group.
(n.d.).
Overview.
http://www.whchem.com/en/aboutus/profile/overview.shtml
Wikipedia.
(2015).
Methylene
diphenyl
diisocyanate.
https://en.wikipedia.org/wiki/Methylene_diphenyl_diisocyanate
Wikipedia.
(2015).
Mitsui
Chemicals.
https://en.wikipedia.org/wiki/Mitsui_Chemicals

Retrieved
Retrieved
Retrieved

from
from
from

Wikipedia. (2015). Wanhua Group. Retrieved from https://en.wikipedia.org/wiki/Wanhua_Group

Wow Batangas. (2012). STO. TOMAS, BATANGAS TOWN PROFILE-GEOGRAPHY,
TOPOGRAPHY, CLIMATE POPULATION AND LITERACY RATE, WATER POWER
AND TELECOMMUNICATIONS SOURCE, CRIME AND FIRE SYSTEM. Retrieved
from http://wowbatangas.com/towns-and cities/sto-tomas/sto-tomas-batangas-townprofile-geography-topography-climate-population-and-literacy-rate-water-power-andtelecommunications-source-crime-and-fire-system/
ZoneBourse. (2014). Investor Release. Retrieved from http://www.zonebourse.com/BASF-SE6443227/pdf/452523/BASF%20SE_Infos-Business.pdf