BP-petrochemical - IraqENG-very Very Impoortant (001-050)

State Company for
Petrochemical Industries
(Petrochemical Factory)
Business Plan
2018
1
1- Exclusive summary
1- Exclusive summary
 Company name: - state Company for Petrochemical Industries.
 Date of foundation: - 1977 according to article 4, paragraph (2) of the Law of Institutions of the
Ministry of Industry and Minerals No. 90 for the year 1970 amended and by the decision of the
Board of Directors of the General Establishment for Chemical Industries No. (6) taken in session
(3) held on 23/2/1977 and ratified by the Ministry of Industry and Minerals by letter No. 22/3/1497
on 13/3/1977. Pursuant to the decision of the Council of Ministers No. (360) for the year 2015
issued by the Cabinet of Ministers No. (10/1/14/31733) on 8/10/2015 and the merger of public
companies belonging to the Ministry of Industry and Minerals, State Company for Petrochemical
Industries with the State Company for paper industries to become the name of the new company
is the State Company for Petrochemical Industries and the company was registered in the Ministry
of Commerce / Corporate Registration Department - Public Companies Division on 15/11/2016.
 Department of administration: - Basrah - Khor Al-Zubair.
 Place of registration: - Baghdad.
 The law governing the company: - The Public Companies Law No (22) of 1997.
 Nature of activity and specialization: - Commodity industry activity.
 Number of sites and branches: - The Company has four factories (petrochemical plant / Basra
governorate, Basrah paper mill / Basrah governorate, Missan paper mill / Maysan governorate and
School requirements factory / Baghdad governorate).
 Nominal capital: - 4212516 thousand dinars.
 The main objectives of the company: - Production of the material below:
petrochemical Basrah paper mill Missan paper mill School Requirements
plant Factory
HDPE Board Board (many Exercise books
types)
LDPE Writing & printing Paper (many Egg trays
paper types)
PVC Corrugated boxes Egg trays Waste compaction
Chlorine liquid & Tissue paper

Caustic Soda
Agricultural Films Chlorine liquid &
Caustic Soda
Plastic bags Hydro chloric
acid
RO bottle
Master batch
Nitrogen liquid
 A brief description of the factory: -The petrochemical factory (the state company of
petrochemical industries SCPI before the merger) established in 1977 as a petrochemical complex
by contract signed with Lummus / USA and Thyssen / Germany with a capital cost of 1.1 billion$.
The project continued carrying out until September 1980 when Iraqi – Iranian war started,
at the same time the commissioning activities were interrupted, so the complex was put
under the preventive maintenance during the war time. At the end of 1987 the complex
operated again, in July, 1988 the Chlorine and Caustic soda plant started working for
water treatment and to feed the national industries. After that the other product plants are
operated as a test operation according to the original contract during the 1st seven
months from the year 1990, they continued working until 2/8/1990 which stopped because
of the 2nd gulf war. The reconstruction started in 25/5/1991 and achieved in August, 1991
and all the plants became ready for operation.
2
2- Factory objectives
The petrochemical plant aims to reach 100% of the design capacities of the factory's production
lines, thus adding value to the labor market, achieving profits, expanding and leading the market and
building a distinctive brand.
- The following table shows the production lines required to increase their production capacity to 100% of their
design capacity:
-
products design capacity (ton/year)
HDPE 30000
LDPE 60000
PVC 60000
Agricultural Films 15000
Chlorine liquid 42000 / old plant
46200 / new plant
Flake caustic soda 42000 / old plant
51810 / new plant
3- Factory tasks
The petrochemical industry is a strategic transformational industry because it converts natural gas
into products that are integrated into various industrial and life sectors as economic alternatives to
traditional raw materials and strengthens the national economy by eliminating the import of these
materials from abroad. The factory tasks are to produce high and low density polyethylene, polyvinyl
chloride powder, Agricultural films, chlorine and caustic soda in addition to the master batch and
PVC compounding where the products of the factory are characterized as high quality and conform
to the standard specifications and suitable prices:
Capacity after Competitors

Design Capacity Customer Value
Products Rehabilitation
(ton/year) proposition
(ton/year) In Iraq Out of Iraq
High density poly Our products have

30000 30000
ethylene HDPE These are the main acceptance because they
products of the factory have high quality No
Low density poly
which are plastic pellets 60000 60000 comparative with competitor
ethylene LDPE
like HDPE & LDPE or neighboring countries companies
Poly vinyl powder like P.V.C products because they are
60000 60000 produced with high
chloride PVC
pressure reactors so these
Neighboring countries
produced from products has good Private

Agricultural film 15000 15000
LDPE pellets mechanical specifications. factories
produced as a Al Furat
Liquid chlorine 42000 construct new
liquid company
chlorine and soda
plant with capacity: Al Furat
produced as a liquid or 46200 t/y - chlorine company
Caustic soda 42000
solid 51810 t/y - soda (product
liquid)
produced as waste bags It isn’t included in with good mechanical Private
Plastic Bags 3850
or public use bags rehabilitation specifications sectors
The project produces gas with good Private
Nitrogen Liquid 1770 / liquid New project
& liquid specifications sectors
3
4- Product and customer value proposition
The customer value proposition for the factory production is high quality produced according to
the international standards with accepted prices and the customer values propositions are:
1-High density polyethylene HDPE: plastic pellets produced according to international
specifications standards and food grades, different grades of this product are produced,
each grade has its own specification.
2-Low density polyethylene LDPE: plastic pellets produced according to international
specifications standards and different grades, each grade has its own specification.
3-Agricultural films: It is characterized by the thickness of (125-200) microns and width (4-9)
m, these sheets are enrolled as big rolls and used for the production of low density
polyethylene pellets (type 463) and therefore possess the required mechanical
specifications.
4-Liquid Chlorine: It is produced in the form of liquid filled in cylinders of 1 ton per cylinders.
5-Caustic Soda: produced from chlorine as a liquid (48%) or solid (70-73) %.
6-Poly vinyl chloride (P.V.C): It powder produced in three grades, this production is stopped
now (no VCM).
5- Peoples
The following table shows the employee segments according to academic achievement:
Emploees Education in 31-7-2018

1450
950
450
-50
Master Engineer Chemical Physics Administr Law Others Diploma High below
Number 9 202 58 21 76 15 92 750 1435 755
The total factory employees (staff) are (3413) on the 31st of July, 2018 with monthly salary
(1.192) million dinar /employee.
The factory management has good experience and efficiency to manage the factory and the
administrative department controls its duties by different computer soft wares like Human
resource system, staff system and so on.
The factory needs to build its capabilities specifically in sales and marketing as well as
maintenance, production and technician operation programming to fit the carrying achievement
factory as high levels to equal to the advance of world countries because Iraq have not had
international relations for many years ago.
It has been putting 2 M$ for training the factory employees.
4
6- Marketing and Sales
Most of factory production is sold directly to the private plastic factories and merchants, and some of
the production is sold by contracts with the governmental companies.
There is no competition company inside Iraq and the unique competitor is the foreign importation
.The local market volume for HDPE is (30000) ton/year, LDPE (80000) ton/year, agricultural films
(10000) ton/year, plastic bags (20000) ton/year, nitrogen liquid (11000) ton/year, Chlorine (10000)
ton/year, Caustic Soda (800) ton/year and PVC (6000) ton/year.
The markets are divided into three segments, two of them are local segments which are:
1- Private plastic factories.
2- Governmental companies and ministries.
The third segment is exporting companies to outside Iraq and merchants.
The factory aims to reach a selling volume (75000) tons of HDPE & LDPE /year, (60000) tons of
PVC /year, (15000) tons of Agri. sheets /year, (5950) tons of Chlorine /year and (51470) tons of
Caustic Soda /year with revenues reach to (282516) Million Iraqi dinars (equal 243.548 M$).
When the factory reaches to capacities close to the design capacity, the company has to think about
expansion the exporting companies segment to exploit the production surplus.
7- Opportunities & Risks

The opportunities & exceptional trading abilities for the factory products are the existing of the
company near the Basrah harbor; in addition the company is the only one in the country which
produces plastic pellets.
The most important risks to the products of the factory are the increase in prices of raw materials
and the emergence of new varieties of competition and the presence of imported products and
competition in the domestic market and prices less than domestic production.
8- Current status
The location of the company is outside the city (Basrah) and because of being inside security fence
makes stable security conditions, because of decreasing the natural gas quantity ,its consumption &
expansion of electrical projects to increase the electrical power, so the natural gas for SCPI is fewer
than its needs.
Available units in the factory:
- Management buildings.
- Building of production plants.
- Many stores to store products, chemicals and assistance and all the company's requirement.
- Medical center.
- Home buildings No (550)
9- Implementation plan and Project system

The factory consists of the following production plants:
1. Ethylene plant
2. HDPE plant
5
3. LDPE plant
4. VCM plant
5. PVC plant
6. Agricultural films plant
7. Plastic Bags
8. Chlorine and caustic soda plant
In addition to the above there is a utility and service unit.
The raw materials which are used in the production processes are:
1- Natural gas to produce ethylene.

2- Raw salt to produce Chloride & Caustic Soda
As well as the catalysts include:-
For LDPE /
 (C67) Tertiart Butyle Peroxy – 2 - Ethyl Hexanote
 (C32) Tertiary Butyle Peroxy Pivalate
 (C2) Di - Tertiary Butyle Peroxide
 (C11) Tertiart Butyle Perbenzoate
For HDPE /
 EP-30
 EP-350
These Catalysts used in polymerize operation as initiators which analyze to radicals which make
the reaction beginning according to the polymerize operation conditions.
LDPE & HDPE produced as plastic pellets, however PVC produced as powder and they filled in
bags.
Chlorine produced as liquid and filled in a cylinder of 1 ton.
The plan aims to rehabilitate the production plants of the company with0 schedule during the first
and second years of qualification as follows:
First year: Starting rehabilitation in the 1st six months to reach 100 % of the design capacity for
HDPE, LDPE & Agricultural films and rehabilitation of VCM & PVC all year and build new
chlorine & soda plant.
Second year: Continuing rehabilitation VCM, PVC build new chlorine & soda plant.
Third year: Operating chlorine & soda plant, operating VCM and PVC.
6
10-Finance & Reporting
The petrochemical factory aims to produce an investment plan for two years to increase
production capacities to 100% of designed capacities (for HDPE, LDPE, PVC, VCM, Agricultural
films plants and the new plant of Chlorine & Caustic soda).
The petrochemical factory planning to invest (237.58) M$ as follows:
16.95 M$ to rehabilitation of Utility & Service unit
53.3 M$ to rehabilitation of Ethylene plant
8.75 M$ to rehabilitation of LDPE plant
7.3 M$ to rehabilitation of HDPE plant
30 M$ to rehabilitation of P.V.C plant
30 M$ to rehabilitation of V.C.M plant
77.58 M$ to construct new chlorine and soda plant with capacity 140 ton/day
1.45 M$ to rehabilitation of Agricultural films and Plastic Bags plants
12.25 M$ Miscellaneous
The annual revenues will be (243.548) M$ after completing the rehabilitation in 2nd year.
The period of investment capital recovery will be (3) years (11) months ,The investment file which
has the investment plan above has been sent to Ministry of Industry & Minerals for studying and
declare it to investment.
The table below shows revenue during the years of investment by the production and sales
schedule described in chapter 4 p. 33.
Invest account Revenues
st nd st nd rd th th th th
(M$) 1 year 2 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year
Utility & Service unit 16.95 Services (water, steam ,….)

Ethylene plant 53.3 Raw martial for HDPE&LDPE&VCM
HDPE plant 7.3 23.276 46.552 46.552 46.552 46.552 46.552 46.552
LDPE plant 8.75 35.398 70.797 70.797 70.797 70.797 70.797 70.797
Liquid chlorine -- -- 4.242 4.242 4.242 4.242 4.242
40 37.58
Caustic soda -- -- 44.371 44.371 44.371 44.371 44.371
V.C.M plant 20 10 Raw martial for PVC
P.V.C plant 20 10 -- -- 56.897 56.897 56.897 56.897 56.897
Agri. films & Plastic
1.45 10.345 20.689 20.689 20.689 20.689 20.689 20.689
films plants…..
Miscellaneous 9.75 2.5
Total 177.5 60.08 69.019 138.038 243.548 243.548 243.548 243.548 243.548
7
The chart below shows the evolution of revenues and profits for investment years according to (the
production cost, investment money and annual revenues table) in chapter 5 p.37:
Development in revenues & profits for investment years

revenues
300 profits
243.548 243.548 243.548
million $
200 138.038
115.1 115.1 115.1
100 69.019
0
2018 2019 2020 2021 2022
-100 -29.557
-200
-191.213
-300
The chart below shows the actual revenues & profits from 2015 to 2017:
Revenues
revenues , expenses & losses for years (2015-2017) Expenses
52.887 Losses
60 53.517
50.439
M$
40
20
0.558 1.078 0.621
0
2015 2016 2017
-20
-40
-60 -51.809 -49.818

-52.959
8
2- Product and customer value proposition
Services provided
- The petrochemical factory produces the following final products:
specifications standards and food grads, different grades of this product are produced,
3-Agricultural films: they are plastic sheets of thickness (125-200) micron and width (4-9) m,
these sheets are enrolled as big rolls, LDPE pellets (463) used to produce these sheets so
this product has good mechanical specifications.
4-Liquid Chlorine: produced as liquid filled in 1 ton per cylinder.
5-Caustic Soda: produced from chlorine as a liquid (48%) or solid (70-73) %.
6-Poly vinyl chloride (P.V.C): powder produced in three grades, this production is stopped
now (no VCM).
Process of production
 The natural gas enters the ethylene plant to produce ethane gas, which is cracked by thermal
furnaces to ethylene gas. The methane gas extracted from the ethane production unit is considered
as fuel to the boilers and power generating machines. However, if the ethylene plant is stopped,
natural gas is the main feeder of Utility & Service unit and gas turbine unit. Ethylene gas is used in
the production of:
 High density polyethylene pellets / After polymerization of a special reactor under certain pressures and
temperatures, the high density plastic pellets are produced according to Phelps technology and are used
in the manufacture of chips, pipes, pipes and household appliances, they are produced in the form of
pellets and packed in bags and sent to stores for marketing purposes. Some of them are sent to a plastic
bag plant.
 Low density polyethylene pellets / After polymerization with special reactors under high pressure and
temperature, low density plastic pellets are produced according to QUANTUM - USI technology with
international specifications, type of food and two production lines. Three different types of pellets with
special specifications can be produced and used in industry Agricultural films, channel lining and in the
manufacture of containers and household items, which are also produced in the form of pellets and sent
part of it to the factory of production of agricultural films and plastic bags plants, the bulk of which is sent
to the warehouses after fill it for the purpose of marketing.
 V.C.M. powder / Chlorine and ethylene are used in special reactors for the production of mono-phenyl
chloride, diethylene chloride is cracked into PVC and hydrochloric acid HCL.
 Raw salt is the main material for the production of chlorine and caustic soda through the electrolysis
of saline solution in the diaphragm cells, which reacts with ethylene gas in special reactors in the
VCM plant to produce EDC, the cell liquid contains 8% of caustic soda, Evaporators that use vapor
and medium pressure for soda production within the concentration of 70%. Caustic soda enters as
raw material in many industries such as paper industry, vegetable oil, soap and silk. The liquid
chlorine is sent to the VCM plant and the other part is marketed to the beneficiaries. after being filled
in liquid form with 1 ton/ cylinder, the caustic soda is stored as a liquid substance at a concentration
of 48% or solid at 70-73% concentration.
9
Available Capacity Compare to Design Capacity
100 Design Capacity
Products thousands of ton/year
84 Available
80 Capacity
60
60 60
36 42
40
30
18
20 15 13.5
0 0 3.08 0 1.77
1.77
3.85
0
LDPE HDPE Agr. Films Liquid Caustic Plastic P.V.C nitrogen
Chlorine Soda bags liquid
The storage capacity is (7000) tons.
Customer value proposition

Our products have acceptance by private and public sectors because they have high quality
comparative with neighboring countries products (Gulf countries and Iran) because they are
produced with high pressure reactors so these products has good mechanical specifications and
food type, as well as agricultural films made from low density polyethylene pellets.
The customer value proposition for the factory production is high quality produced according to the
international standards with accepted prices and the customer values propositions are:
1. HDPE: Produced in different grades with different melting indexes & densities that
enable this product to enter in different uses like sheets , bottles, pipes & home tools
and many industrial fields , the specification of this product are in table below (the
grades 6001, 6006, 6003 have only produced since year 2004) :-
Melt
No. Density
Grade index Usage
g/cc
g/10 MIN
1 EHM 6003 0.25-0.40 0.963 Blow casting tanks & vessels
Plastic water pipes & high pressure
2 TR 401 0.08-0.14 0.942-0.945
gas pipes
3 M 624 5-7 0.961 MIN Plastic boxes & house wares
Injection casting containers and
4 EMN 6030 2.5-4 0.960 MIN
safety hats
5 EHM 6001 0.15 0.960 Low depth domestic tools
Blow casting vegetarian oils , milk and
6 EHM 6007 0.55-0.75 0.958 MIN
water bottles
Blow casting small bottles, knitted
7 HHN 5710 0.85-1.2 0.954-0.957
bags & threads of ropes
Make irrigation pipes & isolate the
8 TR 416 0.3 0.955
wires
Make boats, gas oil tanks, big cargo
9 HXM 50100 10 HLMI 0.950 containers, drums, blow casting,
chemical & agricultural tanks
Blow casting industrial detergents &
10 HHM 5502 0.25-0.45 0.955-0.957
chemical bottles
11
11 TR 140 0.23-0.33 0.944-0.947 Make plastic sheets & bags
12 EHM 6006 0.50-0.75 0.945 MAX Blow casting milk & distiller water refill
13 HHN 52005 0.05-0.09 0.948-0.952 Make plastic sheets
Injection casting, make toys,
14 5550 5 0.955
kitchenware
15 TR 150 0.3 0.949 Make plastic sheets & shopping bags
Make different pieces & small fruit
16 HHM 4520 2 0.945
boxes
Make small garbage containers, fuel
17 HHM 4903 0.3 0.949
containers & making sheets & bags
18 TR 160 0.7 0.964 Saving & wrapping the food sheets
2. LDPE: Produced in many grades as in table below (the grades 464, 461, 463 have only
produced since year 2004) :-
Melt
No. Density
Grade index Usage
g/cc
g/10 MIN
1. 23220(208) 21-23 0.915±0.0015 Blow casting toys & domestic tools
Heavy duty packaging , agriculture
2. 22004(463) 0.28-0.38 0.921±0.924
film and blow molding
3. 22040(464) 3.7-4.3 0.921±0.0015 Injection casting floor films
4. 22020(461L) 2 0.920-0.923 Gel cans and containers
5. 22006(462) 0.6 0.9221 Flexible pipes& films
6. 22004c(463C) 0.34 – 0.4 0.922±0.0015 Insulate cables
General purpose film , carrier bags
7. 21018(461) 1.8 – 2.2 0.920 – 0.923
and medium duty shrink film
3. P.V.C: Produced in three grades with international standard specifications as in table
below (it stopped in 1991 and produced a very little quantities after that) :-
Grade B - value K- Density Usage

value g/cc
Rigid and flexible sheet, film ,package
(54) 608 0.5 MIN 53-55.5 0.75 MAX , bottle , injection , molded product
(66) 676 0.45 MIN 65.5-67.5 0.5 MAX Electrical cables ,pipes ,flexible films
Electrical insulators, plastic slab,
(71) 686 0.45 MIN 70.5 – 72.5 0.5 MAX
flexible tubes.
4. Agricultural films: Specified by desired thickness(150-200)micron & high resistance to
environment conditions and long live time comparative with the same imported product
in the local market and in suitable price, it can be treated with UV – stabilizer .
Desc. Unit Value
Thickness Micron 125-200
Width Meter 4 - 9 meters (or as ordered)
5. Liquid Chlorine: It's important material used in sterilization drinking water, part of this
product used to produce V.C.M which used to produce P.V.C, the chlorine distinguished
by high purity reach to 98.5%.
Desc. Unit Value

CL2 % 98.5
N2 % 0.5
H2 % 0.5
O2 % 0.5
H2O PPM 50 MAX
11
6- Caustic Soda: It's important material in oil refineries where it's injected in crude oil &
maturation to adsorb CO2 & H2S & used to removing sulfur compounds from oil derivatives
& to activate auxiliaries & in fertilizer industries , part of it used in ethylene and utilities
unites as a fuel gas .
Desc. NaClO3 Na2SO4 Fe SiO2 Na2CO3 NaCl NaOH

Caustic 0.22% 50 PPM
0.072% 0.0007% 1% MAX 3% MAX 62-65%
soda 65% MAX MAX
Caustic
0.07% -- 12 PPM 50 PPM 0.7% 1.5% 42%
soda 42%
Customer segments and their needs

- The most important sectors benefiting from the products of the petrochemical plant and the needs
of each sector of products are shown in the following table:
sector needs of products factory share in the
Sector
(tons) coverage requirements
HDPE 22500 22500

Private sector LDPE 60000 37250
PVC 5000 5000
Agricultural Films 2500 2500
Caustic Soda 400 400
Mixed sector HDPE 1500 1500
LDPE 900 900
Agricultural sector LDPE 450 450
Agricultural Films 7000 7000
Municipalities and
Chlorine Liquid 9000 5950
Public Works sector
HDPE 3600 3600
LDPE 18650 6300
Industry sector
PVC 1000 1000
Chlorine Liquid 600 --
HDPE 2400 2400
Oil sector
Chlorine Liquid 400 --
Trade sector Agricultural Films 500 500
12
Competing in service
The main competitive companies are:-
a. The Qatar Company (SAPCO).
b. The Saudi Company (SAPIC).
c. The Iranian Company
These companies give the products below (with delivery):

1- Polystyrene.
2- Polypropylene.
3- PVC powder (the product started in 1990 and stopped in 1991 because of the second gulf war
and continued stopping until 2000 which produced a very little quantities after that (2000-
2003)).
4- Master batch.
5- PVC compounding.
6- Various grades of HDPE (especially EMN-6030, TR-401, M-624 which haven't been
producing for years).
7- Various kinds of LDPE (especially 208 which only produced in 1993 and 1992 because it
needs special condition to produce it).
8- Agricultural films with various width and thickness.
- The main competitor with regard to plastic pellets and agriculture films is the import
companies from outside Iraq and they deals with plastic factories in the private sector and the
farmers, but with regard to liquid chlorine and caustic soda there is one competitor inside Iraq
which is Al-Furat state company for chemical industries, but its production is so low compared
with SCPI, this company deals with the Ministry of municipalities and work for selling this
product (chlorine & caustic soda).
- The petrochemical factory products consider to have continues competition advantages

because of the good quality and suitable prices.
- The new developments that expected from the competitors are the entering new grades of the
plastic pellets to the market that’s can be used in different fields.
- There is no hindrance for entering to the local market, but for the international markets
especially the Middle East market it can be accessed after improving the packaging of the
product and the process of charging process.
13
The route of the petrochemical industries development in the Middle East as shown in fig. below:-
- We can see from the figure above the production capacity of petrochemicals reach high levels
(millions tons/year) with a continuance ascending. At the same time the maximum capacity of
SCPI is 150000 tons/year (design capacity) and this is very low compared with petrochemical
group capacities in the neighboring countries, so it is preferable for the general trends to
establish a new petrochemical group with a high capacity to be alignment with the
international capacities.
- It’s useful to make partnerships with ministry of oil to insure supplying raw materials (natural
gas) required for production process & with suppliers to provide chemical materials and
catalyst.
- Establishing complementary projects like (It hasn't been putting money for these projects in
short – term investment, but they can be done by SCPI, private sector or mixed investment
according to the company and the investor policy after completing the rehabilitation):-
1-Big plastic tanks project / which used in storing water, chemical materials and fuels.
2-Poly ethylene pipes project / with different types such as irrigation pipes, pipes which are
used for transporting drinking water, industrial water, sewage water, chemical materials and
gas distribution.
14
- The table below describe the difference between the competitive products and the equal
company products for 2018 and expected for the following four years:
Price Price
The competitive The equal
Products (thousands (thousands
products company products
of dinars) of dinars)
Poly propylene Poly propylene 1215 -- --
Poly styrene Poly styrene 1240 -- --
PVC PVC -- PVC ( hasn't produced --

since 1991)
LDPE 3003 (Qatari) LDPE 463
LDPE 8000 (Qatari) LDPE 463
LDPE 322 (Saudi) LDPE 463
LDPE LDPE 722 (Kuwaiti) 1850 LDPE 463 1825
LDPE N-118 (Kuwaiti) LDPE 463

LDPE 208 ( hasn't
LDPE 5006 (Saudi)
produced since 1994)
HDPE 60888 (Kuwaiti) HDPE 6003
HDPE TR-401 (hasn't

HDPE TR-144 (Qatari)
HDPE 1825 1800
HDPE 5502 (hasn't
HDPE 5502 (Qatari)
HDPE 5429 (Saudi) HDPE 6003
Development of services
1. Establishment of a polypropylene production unit (proposed in the long-term investment
plan at a cost of $ 1 billion).
2. Establishment of a plant to separate the waste / an investment file has been prepared and
the Ministry of Industry and Minerals has been approached to obtain the qualifications of the
technical undersecretary to promote the project through the conclusion of a partnership
contract with the private sector. The project is economically feasible and achieves financial
returns that contribute to maximizing the financial resources of the company. (Nitrogen and
oxygen, argon).
15
Quality system
- There is a quality management department in the factory with (11) employees and will be ready to
apply the quality management system in accordance with the standard ISO9001,2015, when
operating the production plants of the factory, knowing that the factory continues to provide
educational courses and guide the members on the quality management system.
- The amount of (2) million dollars for the purpose of application in the factory, knowing that the
factory is constantly providing educational and guidance on the quality system.
- To obtain ISO certification the project must be passed six stages:-
1. Guidance and preface
2. Preparation
3. Documentation
4. Application
5. Revision
6. Recording
These stages demand (12-24) months for enough duration in the presence of experienced factory
for preparing ISO with high experience.
Production of intellectual property

For the issues of invention license the center of researching in the factory do the coordination with
the local researching centers and universities to make new grads of productions and organize its
ownership according to the ruling in the country.
16
3- People
Existing employee structure
The total number of the factory employees now in 31/7/2018 (3413) distributed as below:-
Description Total
PH & M.Sc 9
Engineer 202
Chemical 58
Physics 19
Bachelor
Administrations & Economic 76
Law 15
Others 92
Diploma 750
High school 1435
Below High school 755
Emploees Education in 31-7-2018

1450
950
450
-50
PH & Engineer Chemical Physics Administr Law Others Diploma High below
Number 9 202 58 21 76 15 92 750 1435 755
- The employment levels are as below:-
employment level(2000-2017)
5000
employees
number of
0
2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18
N um be rs 4 16 5 4 116 4065 3974 3849 3749 3 6 14 3530 3 4 13
Year
-The peak employment was in 2010.
17
Direct Manager
Coordination & Mass Secretarial & Baghdad Bureau

Gas Turbine (44) Deputy of DG
Continuation (29) Communication (12)
(20)
Item management Legal Section (18) Commercial Section Finance section (27) Internal Surveillance Management Section Security clearance
Section (135) (15) (8) (99) (251)
Bureau 6 Bureau 2 Bureau 2 Bureau 5 Bureau 2 Bureau 3 Bureau 5
Spare parts 61 Contracts 5 Local Purcha. 5 Financial 8 Financial 2 People 26 Safety 126
Raw material 36 Lands 4 Fore. Purcha 4 Storage 4 Contracts 2 Retirement 3 Firefighting 71
Storage accounting
Production 32 Lawsuit 7 Customs 3 Salaries 5 Salary 2 staff 2 Reception 20
storage accounting
Computer 1 Manag. account. 5 Training 6 Tel. exchange 3
storage
Research & Safety & Inspection ISO section (12) Service 19 Sergeant 15
Development (40) (34)
Bureau 2 Bureau 3 Marketing (12) Inform. Center (18) Bureau 3 Data 6 Sec. permits 11
Studies & Dev. 9 Safety 16 Bureau 3 Bureau 2 Revision 3 Business Develop. 4
Corrosion 19 Inspection 15 Selling 5 Information 5 Documentation 3 Transformation 30
Chem. Industries 10 Advert. & data 4 Internet 5 Recording.. 3
Systems 6
Production Sec. (580) Maintenance Section Technicality Service Quality control (166) Planning & Studies (61) Utility & Services
(1285) (178) Unit (342)
Bureau 10 Bureau 13 Bureau 3 Medical Bureau 15 Bureau 7 Bureau 7
Ethylene 174 Electricity 242 Mech. Maint. 53 Bureau 3 Bypass product 75 Product Planning 7 Water treat. 147
section
HDPE & MB 97 Instrumentation 251 Heavy Equi. 42 Med. Services 16 Quality 6 Programming 10 Boilers 92
LD ,Agr.& Foils 273 Rotary 250 Equi. Maint. 36 Lab. Services 3 Production 37 Stock Control 16 Cool. towers 44
VCM & PVC -- Stationary 324 Refrigeration 44 Nursery 3 Environment 11 Statistics 2 RO bottles 52
Chlorine & Soda 26 Manufacturing 95 Polymer 22 Studies 5
Civil 40 Documentation 9
Rotary 50 Investment 5
Covering 20
Workshop
18
The departments of the company
1. Board Of Directors Determined the policy of the company & take important decisions
2. Director General General management & supervising the implementation of company policies
3. Deputy General Director Doing the general manager’s action in case of his absence as well as managing some technical sections
4. Petrochemical factory
5. Basrah paper Mill
6. Myssan paper Mill
7. School Requirements factory
The petrochemical factory contains of many departments as in table below:-
1- Quality Control Dept. Chemical tests & quality control of products

2- Legal Dept. Execute legal responsibilities
3- Auditing Dept. Auditing financial & implementation files
4- Medical Dept. Providing first aid and medical care
5- Warehouse Dept. Storing products ,raw materials & spare parts
6- Planning & Studies Dept. Planning production, maintenance & artificial statistics, studying, documentation, invest. & quantity control
7- Utility & Service Unit Supervising and follow out the gas turbine, water treatment unit, boilers, cooling towers unit and N2 system
8- Production Dept. Follow up production process in all production units
9- Maintenance Dept. Maintenance all equipment regularly and on order
10- Technology Service Heavy equipment, mechanism maintenance and refrigeration
11- Safety & inspection Dept. Providing safe for employees, inspection for all equipment (rotary, stationary, boilers) before operation.
12- Information Center Follow up salary system, internet, computer issues & providing required data
13- Administration Dept. Implementation administrative issues of employees and human resource system
14- Finance Dept. Follow up salaries, expenditure, revenues, all financial issues
15- Commercial Dept. Advertising tenders &purchases and commercial issues management
16- Marketing Dept. Promotion , advertisement and sales
17- ISO Dept. Follow up the ISO system
18- Follow-up maintenance and coordination of works between the sections and laboratories of the production
Coordination & Continuation Dept.
plants in addition to the provision of transport and heavy equipment (cranes ....)
It contains 4 generators design capacity for each one = 20 MW/hr where it provides the production plants with
19- Gas Turbine Dept. the electrical power necessary for operation in addition to the administrative departments and maintenance
departments and residential houses with electricity and the export of surplus to the national network
Attend seminars and conferences, participate in international exhibitions and exhibitions of the ministry, follow
20- Mass Communication Dept. up the activities of the company and documenting photography and video and preparing reports and sending
them to the media office in the ministry
19
Management team
The specialist & degrees of management crew members are:
Date of obtaining
Period of the current
No. Name Responsibility Degree Specialist
duty
position
1 Kalid Kadhim Naji Direct manager Science Bachelor 27 2015 Chemical

Sadiq Ibraheem Engineering
2 Deputy of DG 39 2007 Mechanics
Mohammad Bachelor
Fadhil Hammady Engineering
3 Product manager 25 2015 Chemical
Hmood Bachelor
Mohammad Abd- Maintenance Engineering
4 37 2007 Electrical
Alzahra Munsif manager Bachelor
Falih Abd-Al Engineering
5 Utility manager 39 2004 Mechanics
Razaq Khdair Bachelor
6 Sami Dakhil Jenzi Marketing manager Science Bachelor 22 2009 Chemical
Medical center
7 Safaa Jihad Habeeb Medical Bachelor 37 1980 Surgery
manager
Safety & Engineering
8 Noori Ahmed Ali 35 2006 Mechanics
inspection manager Bachelor
Tahreer Quality control
9 Science Bachelor 21 2017 Chemical
Mohammad Abass manager
Zahair Jassim Engineering
10 Planning manager 39 2015 Electrical
Hameed Bachelor
Najim Abd Allah Items management
11 Diploma 37 2015 Stock control
Shanoof manager
Gailan Abd Al
12 Legality manager Legal Bachelor 23 2017 Law
Qadir Saleh
Internal Administrations and
Haifa”a
13 Surveillance Economics 34 2016 Accounting
Mohammad Tahir
manager Bachelor
Commercial
14 Imad Khotair Abas Arts Bachelor 23 2011 English
manager
Administrations and
Management
15 Yahia Taha yassin Economics 30 2006 Accounting
manager
Bachelor
Administrations and
Mohssin Haloob
16 Finance manager Economics 25 2015 Accounting
Hasheem
Bachelor
Information center
17 Majid Falih Zuhair Science Bachelor 35 2012 Computer
manager
Yaseen Khdair
18 ISO manager Science Bachelor 30 2010 chemical
Marzoq
Administrations and
Talib Mua:al Security clearance Business
19 Economics 33 2017
Dhomed manager Administration
Bachelor
Jawad Kadhim Technicality Engineering
20 25 2012 Mechanics
Khefy Service manager Bachelor
Mass
21 Salim Jabar Meki Communication Technical Diploma 38 2005 Operation
manager
Coordination &
Kareem Abd
22 Continuation Technical Diploma 39 2014 Operation
Allah Ma”tuk
manager
21
Staff skills
The factory employees, especially the old ones, have experience and skills. The factory was
established under the contract of Lummus / USA and Thyssen / Germany, therefore, most of the
staff in the United States were dispatched and trained. The production plants were also operated
in the presence of the licensed companies as well as the factory has witnessed rehabilitation
work for more than once and has been qualified by the cadres of the factory
Skill and people gaps

The factory management has good experience and efficiency qualify them to manage, run & keep
the company in such exceptional circumstances without dependence on foreign side, this crew
working on training the factory staffs and share their experience with them professionally which
encourage on applying the investment planning and activate the factory, while the employees
continually have training courses to polish their skills to avoid any hole in skills.
The factory needs to build its capabilities specifically in sales and marketing as well as
maintenance to fit the carrying achievement factory as high levels although the equipment are
very old and need to develop them to alignment the world advance.
The actual employee numbers (with degrees) are as in table below:
It has been putting 2 M$ for training 1060 employees approximately (advanced staff and some
of middle staff) about:-
Cost
No. of No. of
Unit Activities Programs Duration (thousands
course participant
of I.D.)
Utility and 1 week for each
Maintenance Maintenance of new equipment 4 100 200
service course
Operation & Course about the operation 1 week for each
4 70 200
Ethylene production system of ethylene plant course
plant
1 week for each
course
Operation & Course about the operation the 1 week for each
2 50 100
HDPE & production new equipment in two plants course
LDPE Course about primary & secondary 1 week for each
Maintenance 3 50 150
compressors and reactors course
Operation & Training about operating the two 2 weeks for each
3 50 150
VCM & production plants course
PVC 2 weeks for each
course
1 week for each
Finance Financial & cost dealing 1 20 50
Finance & course
trading 1 week for each
Trading Trading dealing 2 20 50
course
Course about Safety & fire 1 week for each
Safety & fire fighting 2 60 100
fighting course
Training participant about 1 week for each
ISO 4 200 200
application of ISO course
Others Training the employee of 1 week for each
Maintenance 8 300 350
workshops course
Training about new inspection 1 week for each
Inspection 1 20 50
equipment course
Training about new quality 1 week for each
Quality management 1 20 50
management equipment course
1 week for each
Marketing feasibility 1 12 50
course
Marketing
1 week for each
Modern marketing 1 12 50
course
The training will be in and out of Iraq.
21
Human Resources processes
The procedures applied in human resources department controlled by computer system are:
1- Human resource system / this system developed by saving system instead of dossiers.
2- Payroll list system / it is working by providing the computer information about employees
(permission, absence, bonus…). .
3- Vehicles system / stocktaking of company vehicles.
4- Retirement system is existing and working.
5- Punishment system is existing and working.
6- Incentive system/there was no incentive system since 2003.
And other systems.
The company management will start rehabilitation process to all units for reaching to the higher
production capacity to win high revenues & profits.
Human Resources Implementation Plan

1. Reallocation of surplus workers through re-distribution in the plans and sections of the factory
at the present time, where the current number is required in the case of operation of
production plants and the opening of new plants such as the separation of gases and
polyethylene linear and polypropylene.
2. Continuing training and development of cadres with the knowledge that an amount has been
allocated within the work plan to develop their skills in most fields required.
22
4- Marketing & Competition
Factory Products
- The customer value proposition for the factory production is high quality produced according
to the international standards with accepted prices and the customer values propositions are:
each grade has its own specification (explained in Chapter 2 - Customer value proposition).
specifications standards and different grades, each grade has its own specification
(explained in Chapter 2 - Customer value proposition).
3-Agricultural films: It is characterized by the thickness of (125-200) microns, which is very
desirable thickness and is characterized by good resistance to weather conditions and a
longer time compared to what is in the domestic market as well as the appropriate price,
these agricultural covers can be treated by UV stabilizer as customized.
4-Liquid Chlorine: Which is a major substance in the sterilization of drinking water and the
bulk is used for the production of phenyl chloride V.C.M which is used in the production of
P.V.C powder, and has a high purity of 98.5% minimum.
5-Caustic Soda: Which is an important material used in oil refineries where it is treated with
crude oil and natural gas for the removal of CO 2 and H2S. It is also used in fertilizers,
detergents, soap, water treatment and pharmaceutical plants, and consumes in ethylene
plant and utility sector.
6-Poly vinyl chloride (P.V.C): It is used for the manufacture of solid and nylon chips, pipe
production, electrical wire insulators, plastic rails and flexible pipes. It is produced in world
standard specifications and in three categories.
Existing customer base
The main customers for petrochemical company are:
1- The companies of public sector.
2- The companies of mixed sector.
3- The companies of private sector.
There is no contract with any beneficiary sector now.
- The sales from 2015 to 2017 are as the tables below:

1- HDPE , LDPE & Chlorine Sales / No sales
2- Agricultural films Sales (the percentage of customers possessing)
Sector 2015 2016 2017

Public sector % 59 62 38
private sector % 41 38 62
3- Plastic bags Sales (the percentage of customers possessing)
Sector 2015 2016 2017

Others % 100 100 0
6- Nitrogen liquid Sales (the percentage of customers possessing)
Sector 2015 2016 2017

Public sector % 0 3 0
Private sector % 0 97 100
23
- The most important customers excluded from the petrochemical products and the needs of
each sector of products are shown in the following table (the ratio of dealing with customers
was calculated as 100% of the design capacity): -
factory share in the customer handling
sector needs of products
Sector coverage ratios by type of
(tons)
requirements product
HDPE 22500 22500 100%

Private sector LDPE 60000 37250 62%
PVC 5000 5000 100%
Agricultural Films 2500 2500 100%
Caustic Soda 400 400 100%
Mixed sector HDPE 1500 1500 100%
LDPE 900 900 100%
Agricultural sector LDPE 450 450 100%
Agricultural Films 7000 7000 100%
Municipalities and
Chlorine Liquid 9000 5950 66%
Public Works sector
HDPE 3600 3600 100%
LDPE 18650 6300 34%
Industry sector
PVC 1000 1000 100%
Chlorine Liquid 600 -- 0%
HDPE 2400 2400 100%
Oil sector
Chlorine Liquid 400 -- 0%
Trade sector Agricultural Films 500 500 100%
- Most of the factory production is directly sold to the plastic factories of the private sector and the
merchants, in addition to contracts with governmental sectors like the ministries of agriculture,
municipalities & work and oil and some of the companies in the ministry of industry.
- The following table shows the quantity and the value of the annual sales according to the factory
products for years 2015-2017.
2015 2016 2017

(million of
(million of
(million of
Product
dinar)
dinar)
dinar)
value
value
value
(ton)
(ton)
(ton)
Qty
Qty
Qty
Agri. films 7 14 25 50 10 19
Plastic bags 5 15 298.5 801 -- --
Nitrogen Liquid -- -- 704 176 25 6
Total 29 1032 25
24
production path for years 2015-2017)
2000
sales(millon Dinars)
1032
0 29 20
ye a rs 2015 2016 2017
The table below describes the percentage of sales according to the customers (sales of 2015 -
2017):
2015 2016 2017
Products Customers Percentage of Percentage of Percentage of

Sales Sales Sales
sales to the sales to the sales to the
( ton) ( ton) ( ton)
annual revenues annual revenues annual revenues
Agr. public sector 4 30% 15.5 3% 4 31%

films private sector 3 20% 10 2% 6 44%
Plastic private sector 5 50% 5 77% -- --
bags public sector -- -- -- 1% -- --
Nitrogen private sector -- -- 682 16% 25 25%
Liquid public sector -- -- 21 1% -- --
-The percentage of sales that goes to the four large customers are (sales of 2015 - 2017):-
Percentage of sales Percentage of sales Percentage of sales

Main customers to the annual to the annual to the annual
revenues / 2015 revenues / 2016 revenues / 2017
Plastic factories of the private
sector & merchants
70% 95 % 69 %
The rest of governmental
companies
30% 5% 31 %
Market volume
The current local market volume for each segment is as table below:-
Local market volume ton/year Factory

No. Products size for the
private sector Public sector Mixed sector Total market
1 LDPE 60000 19100 900 80000 45000
2 HDPE 22500 6000 1500 30000 30000
3 Agriculture films 2500 7500 -- 10000 15000
4 Plastic bags 10000 10000 -- 20000 1850
5 Nitrogen liquid 6000 5000 -- 11000 1770
6 Liquid chlorine -- 10000 -- 10000 5950
7 Caustic soda 400 400 -- 800 51470
8 PVC 5000 1000 -- 6000 60000
25
The market volume was counted through the local marker survey, the following table shows the size
of the factory for the market:
80000 market volume

60000
40000 factory volume
20000
0
C
PE
PE
gs
da
s
ui
rin
m
PV
ba
HD
so
LD
liq
Fil
lo
tic
en
tic
ch
ri.
as
og
us
ag
pl
ca
tr
ni
The plastic pellets are the main products of the factory, and the local market volumes of these
pellets which are represented by (plastic factories in the private sector and governmental
companies) are close with our products, therefore, the petrochemical plant mainly targets export
companies and traders to market most of its products.
Expected market growth

The charts below show the market volume during the investment years:-
HDPE
30000
23410 23870 24355

25000 22500 22950
private sector
20000
market volume (ton)
public sector
15000 mixed sector
10000
6000 6120 6240 6370 6495
5000 1500 1530 1560 1590 1625
0 2018 2019 2020 2021 2022
LDPE 64945
70000 60000 61200 62425 63670
60000
market volume (ton)
50000
private sector
40000 public sector
30000 20270 20675 mixed sector
19100 19480 19870
20000
10000
0
2018 2019 2020 2021 2022
26
PVC
6000 5100 5200 5306 5410
5000
market volume (ton)

5000
4000
private sector
3000 public sector
2000
1000 1020 1040 1060 1080
1000
0
2018 2019 2020 2021 2020
Agricultural films
8000 7500 7500 7500 7500 7500
7000
market volume (ton)
6000
5000
4000
private sector
3000 2500 2500 2500 2500 2500 public sector
2000
1000
2018 2019 2020 2021 2022
Liquid Chlorine
11000
10800
10800
market volume (ton)
10600
10600
10400
10400
10200
10200
public sector
10000
10000
9800
9600
2018 2019 2020 2021 2022
27
Caustic Soda
450
440440
market volume (ton)
440
430430
430
420420
420
410410 private sector

410
public sector
400400
400
390
380
2018 2019 2020 2021 2022
Public sector: The growth percentage is 2% yearly where it's expected rehabilitating most of
governmental companies which use plastic pellets.
Private sector: The growth percentage is 2% yearly where it's expected re operating the plastic
plants within coming years and increasing their numbers.
Mixed sector: The growth percentage is 2% yearly.
The table below describes the comparison between the current local market volume and the
expected sales:-
2018 2019 2020 2021 2022

Sales Local Percentage Local Percentage Local Percentage Local Percentage Local Percentage
Product Customer
(ton) market of expected market of expected market of expected market of expected market of expected
volume sales % volume sales % volume sales % volume sales % volume sales %
Public,
private
HDPE 30000 & 30000 100% 30600 98% 31200 96% 31830 94% 32460% 92%
mixed
sector
Public,
private
LDPE 45000 & 80000 56% 81600 55% 83225 54% 84895 53% 86595 52%
mixed
sector
Public
Agr. &
15000 10000 150% 10000 150% 10000 150% 10000 150% 10000 150%
Films private
sector
Public
&
PVC 60000 6000 1000% 6120 980% 6240 961% 6365 943% 6490 924%
private
sector
Liquid public
5950 10000 60% 10200 58% 10400 57% 10600 56% 10800 55%
chlorine sector
Public
Caustic &
51470 800 6434% 820 6277% 840 6127% 860 5985% 880 5849%
Soda private
sector
28
Product percent to market volume
%
6650%
5650%
4650%
3650%
2650%
1650%
650%
-350%
HDPE LDPE PVC agrig. Films chlorine caustic soda
Nature of competition
1. The nature of the competition in terms of the type of products / the products of the factory
are characterized by high quality and within the international specifications and the variety
of varieties of high and low density polyethylene and PVC powder to include most of the
required requirements for these products. The company seeks after the implementation of
the plan of work to seek the establishment of complementary production of polypropylene
and complementary industries to match the equivalent products located in the local
market.
2. The nature of the competition in terms of product prices / the prices of the products of the
factory are suitable compared to the prices of the equivalent products.
Petrochemical industries development

The development of petrochemical industries depends on:-
1. Rehabilitation of the complex with all its plants & managements especially which stopped
many years ago.
2. Varying the products such as producing poly propylene & polystyrene.
3. Application ISO system.
4. Training staff factory (raising the level of it).
The targets that must be reached

1-Obsessing with the largest area in local market by free competition.
2- Entering to international and regional markets.
3- Achieving the largest revenues which share with development and enlargement in future.
The current status & the next stages that develop product
Actually if we make analysis sight to the current status for petrochemical industries under
absence market and product arrangement laws , we will find the development and progress
29
actions for this industry are under ambition level because of absence the laws and
legislations which limit the plastic products exporting from neighboring countries.
Also most of the plastic factories which took place a large area in product market have
converted to wholesales , and some of them moved to neighboring countries to work there
, so it must be made:-
1- Providing electrical power for factories which use our products.
2- Providing the financial and immaterial supporting.
3- Entering the foreign and local capitals in rehabilitation.
The resent customers and their locations

The main customers are:-
NO. Customer Location
1 Plastic factories of the private sector Most of them in Baghdad

2 Exporting companies of the private sector Baghdad and Basra
3 Plastic industrial company Baghdad
4 Ministry of oil companies Baghdad, Basra, Nasyria, Baiji
5 Ministry of industry & minerals companies All provinces
6 Ministry of municipalities and work All provinces
7 Ministry of agriculture Baghdad
Marketing and promotion of the company's products

- Most of the products are sold in selling center at the company site In Basrah, the company has
an office in Baghdad, Sometimes there is an agreement with the state company for
constructional industries (in Baghdad) warehouse being used before 2003 as centers for direct
sales. The selling process to the plastic factories & the traders is done by direct sale list where
the customer submits purchase orders to the marketing department in the factory determined the
quantity that he needs in, the agreement is done by the director general in the company. The
selling to the governmental ministries and companies is done by a contract signed by the
director general, marketing manager and the legal manager in each side, it can also sell without
a contract if the quantities are small.
- By division the market to three segments (the private sector, governmental companies and the
private exporting companies), all of these segments prefer products with suitable prices and
compatible to the international standard specifications, the company can give preference to the
price of the large amounts where saves selling price to the customer.
- Now the sales way is direct, it’s divided into 2 parts:-
1- Wholesale with percentage discount (depends on the quantity of sales).
31
2- Direct sales without discount (for big quantities).
- The promotion is done by:-
1- Advertising in local newspapers and printing product catalogs
2- Display the products through participation in the annual exhibitions held in Iraq and
neighboring countries and the issuance of annual files to identify the products and the
company has a website on the web displays products and direct contact with customers.
3- Make contacts with public, private and mixed companies by entering the websites of some of
them in addition to direct contact to know their annual needs of plastic granules, what grades
of desired products, quantities to be shipped in a contract or direct sale, as well as advice in
the field of manufacturing and how to produce plastics.
4- By giving simple gifts to attract customers (such as medals, calendars,..).
5- Subscribing with international festivals inside & outside Iraq.
- To attract the customer confidence we suggest:-
1- Interesting in giving services (facilities to buy products).
2- Interesting in products quality (bagging, covering and storing).
3- Receive their opinions and appendix problems.
- There is no customer service process (transfer operations and delivery of the product to
customers) currently, the process of delivering products to customers is through direct sales and
to win the trust of customers in the future, we suggest the following:
a. Accreditation of agents in the local market
b. Delivery of the product to the customer
c. Open private agencies in the world markets (as is the case in the countries of the world)
The expected sales

The table below describes the sales volume during the invest years (based on stability of product
prices and selling all the products), we notice that:-
First year: Starting rehabilitation in the 1st six months to reach 100 % of the design capacity for
HDPE, LDPE & Agricultural films) and rehabilitation of VCM & PVC all year and build new
chlorine & soda plant.
Second year: Continuing rehabilitation VCM, PVC build new chlorine & soda plant.
Third year: Operating chlorine & soda plant, operating VCM and PVC.
31
The current final prices of the products that have been adopted in calculating the productions
and sales capacities are shown in the table below:
No. Products Price in Million dinar/ton

1 HDPE 1.800
2 LDPE 1.825
3 Agriculture Films 1.600
4 PVC Powder 1.100
5 Plastic Bags 2.700
6 Nitrogen Liquid 0.250
7 Liquid chlorine 0.827
8 Caustic soda 50% 1
32
Products 2018 2019 2020 2021 2022
production
production
production
production
production
revenues
revenues
revenues
revenues
revenues
capacity
capacity
capacity
capacity
capacity
Self-use
Self-use
Self-use
Self-use
Self-use
Annual
Annual
Annual
Annual
Annual
Annual
Annual
Annual
Annual
Annual
sales
sales
sales
sales
sales
HDPE 15000 15000 27000 -- 30000 30000 54000 -- 30000 30000 54000 -- 30000 30000 54000 -- 30000 30000 54000 --
LDPE 30000 22500 41062 7500 60000 45000 82125 15000 60000 45000 82125 15000 60000 45000 82125 15000 60000 45000 82125 15000
Agr.
7500 7500 12000 -- 15000 15000 24000 -- 15000 15000 24000 -- 15000 15000 24000 -- 15000 15000 24000 --
films
Liquid
- - - - - - - - 46200 5950 4921 40250 46200 5950 4921 40250 46200 5950 4921 40250
chlorine
Caustic
- - - - - - - - 51810 51470 51470 340 51810 51470 51470 340 51810 51470 51470 340
Soda
P.V.C - - - - - - - - 60000 60000 66000 -- 60000 60000 66000 -- 60000 60000 66000 --
Total 80062 Million dinar 160125 Million dinar 282516 Million dinar 282516 Million dinar 282516 Million dinar
sales 69.019 Million Dollar 138.038 Million Dollar 243.548 Million Dollar 243.548 Million Dollar 243.548 Million Dollar
Products Quantity Beneficiary

7500 ton / for year 2018 The quantity is used for producing agricultural films by 1 ton
LDPE
15000 ton / for years 2019, 2020,2021 and 2022 LDPE / 1 ton agricultural films
40100 ton is used for producing VCM by 0.6076 chlorine / 1 ton
VCM (66000 ton VCM is used to produce 60000 ton PVC by
Liquid chlorine 40250 ton / for years 2020,2021 and 2022
1.1 ton VCM / 1 ton PVC)
150 ton is used for water sterilization in utility unit
340 ton is used during the production processes at the
Caustic Soda 340 ton / for years 2020,2021 and 2022
33 ethylene plant and utility unit
5- Implementation Plan and Project System
Application Plan Summary
 Nature of activity and specialization: - Commodity industry activity.
 Number of sites and branches: - The Company has four factories (petrochemical plant /
Basra governorate, Basrah paper mill / Basrah governorate, Missan paper mill / Maysan
governorate and School requirements factory / Baghdad governorate).
 The main objectives of the company: - Production of the material below:
petrochemical Basrah paper mill Missan paper mill School Requirements
plant Factory
HDPE Board Board (many Exercise books
types)
LDPE Writing & printing Paper (many Egg trays
paper types)
PVC Corrugated boxes Egg trays Waste compaction
Chlorine liquid & Tissue paper

Caustic Soda
Agricultural Films Chlorine liquid &
Caustic Soda
Plastic bags Hydro chloric
acid
RO bottle
Master batch
Nitrogen liquid
The petrochemical factory aims to produce an investment plan to invest (237.58) M$ for two
years to increase production capacities to 100% of designed capacities (for HDPE, LDPE, PVC,
VCM, Agricultural films plants and the new plant of Chlorine & Caustic soda) as follow:
First: First year requires the following steps:

A- During the first six months of the year, each of the units shall be rehabilitated:
1. Rehabilitation all units in Utility & Service unit
2. Rehabilitation Ethylene, LDPE and HDPE plant to increase their capacities.
3. Rehabilitation Agricultural films plant, Quality Control, Industrial Safety and rehabilitation the
roads.
B- During the year from the first month to the last month, the following shall be:
4. Rehabilitation VCM & PVC plants.
5. Install new Chlorine and Caustic Soda plant.
6- Rehabilitation of quality management building, new software and staff training.
Second: Second year requires the following steps:
1- Keep rehabilitating VCM & PVC plants.
2- Keep installing new Chlorine and Caustic Soda plant.
a. Keep rehabilitating Quality management unit, obtaining ISO 9001 and staff training.
34
Schedule of projects completion
Cost
Utility & Service unit Jan. Feb. Mar. Apr. May Jun.
(M$)
Rehabilitation Al Muftia unit (replace
2.5
intake pipe + new Intake pump)
Rehabilitation the primary treatment 1
Rehabilitation R.O. unit 2.2
Rehabilitation Demi. water unit 1.7
Rehabilitation the boiler No.2 of them and
2.25
new pumps for them No.2
Replace condensate carbon filter &
0.85
polisher
Rehabilitation the old nitrogen unit and
0.85
new closed chilled system
Rehabilitation the wasted pipes (air, water
1.3
and steam pipes) & Acces.
New air compressor and rehabilitation the
1.7
old air compressor
New cooling tower , new rotation chilled
water pump with motor, new chemicals 2.6
injection system and Chlorination device
Cost
Ethylene plant Jan. Feb. Mar. Apr. May Jun.
(M$)
Re-tubing of heating exchangers 4.05
Rehabilitation of ethylene cracking heaters 6
Rehabilitation of ethylene compressors 25

Rehabilitation of ethylene towers 2
Rehabilitation of ethylene tank 0.75
New pumps 2.5
New catalyst for astylene converter DC-1601 0.5
New isobutene system 10
Update instrument system 2.5
Cost
HDPE plant Jan. Feb. Mar. Apr. May Jun.
(M$)
New extruder with 5 ton/hr 2.5
Rehabilitation control and balance of
0.25
catalyst system
Rehabilitation isobutene compressor and
2
accessories system
Rehabilitation Freon unit of isobutene
0.25
system
Rehabilitation reactor and accessories 0.75
New pump (syndyne) and spare parts GA-
0.2
6402
Rehabilitation the blower for GB-6501 0.1
Rehabilitation hydrogen compressor GB-
0.5
6101 for producing new grate of HDPE
Rehabilitation heat exchangers 0.75
35
Cost
LDPE plant Jan. Feb. Mar. Apr. May Jun.
(M$)
Rehabilitation of Reactors ( for 2 lines) 1.5
Rehabilitation of primary & secondary
1.5
compressors
New blowers No.2 1
Supply : 1)spilt units for extruder & peroxide
1
storage 2) peroxide car
Re tubing pipes for ED heat exchanger of
1.5
primary and high pressure compressors
New pumps No.4 (pump + motor) 0.75
Rehabilitation and update instrument system for
1.5
all plant
Cost
Agricultural films plant Jan. Feb. Mar. Apr. May Jun.
(M$)
New building for agricultural plant 0.1
New complete chilled water system 0.75
Spare parts for one line 0.5
New cutting machine No.7 and other spare
0.1
parts for plastic foils plant
Miscellaneous Cost 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
(M$)
New building for petrochemical factory
1
administration
Rehabilitation of factory roads 1
Rehabilitation of the maintenance workshops 0.75
Supply materials and devices for Quality
0.25
control sector
Rehabilitation of the lighting system in factory 0.75
New crane 30 ton No. 1 , truck 40 ton No. 1
and excavator No.1
New land cruiser No. 10
New coaster bus (28 passenger) No. 4 for staff
3.5
New kia car (14 passenger) No.4 for staff
New tankers (16000 litter) No.1 and fire truck
No.1
New ambulance No. 1 and lorry car 16 ton No.
1
Rehab. of quality management building &
2
obtain ISO 9001
New software 1
Staff training 2
Project management
The Director of the Petrochemical Factory shall supervise the implementation strategy, with the
work team preparing the plan to carry out its tasks according to its competence and endeavor to
overcome the obstacles and difficulties such as the availability of raw materials and reserves or
obtaining funding for the implementation of the project plan.
36
Short - term investments
The petrochemical factory aims to produce an investment plan to invest (237.58) M$ for two
years to increase production capacities to 100% of designed capacities (for HDPE, LDPE, PVC,
VCM, Agricultural films plants and the new plant of Chlorine & Caustic soda).
16.95 M$ to rehabilitation of Utility & Service unit
53.3 M$ to rehabilitation of Ethylene plant
8.75 M$ to rehabilitation of LDPE plant
7.3 M$ to rehabilitation of HDPE plant
30 M$ to rehabilitation of P.V.C plant
30 M$ to rehabilitation of V.C.M plant
77.58 M$ to construct new chlorine and soda plant with capacity 140 ton/day
1.45 M$ to rehabilitation of Agricultural films and Plastic Bags plants
12.25 M$ Miscellaneous
The annual revenues will be (243.548) M$ after completing the rehabilitation in 2 nd year.
The period of investment capital recovery will be (3) years (11) months, noting that the revenues for
the last three years have been confirmed on the assumption of the prices of the products.
-The production cost, investment money and annual revenues shown in table below:
(M$)
Desc. 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
Investment cost 177.5 60.08
Products cost 82.732 107.515 128.448 128.448 128.448 128.448 128.448
Revenues 69.019 138.038 243.548 243.548 243.548 243.548 243.548

cost
Profits cost -191.213 -29.557 115.100 115.100 115.100 115.100 115.100
- The table above points that the profits will start in the 3 rd year in succession.
Long – term investment

- Installing a new poly propylene product unit with estimated cost 1 billion dollar for the
production of 400000 tons/year.
Anticipated Bottlenecks
1- The raw materials may be limited from the gas committee of southern region as well as
decreasing the natural gas pressure.
2- The spare parts may not reach in invest work time.
37
Supply Chain
- The production is effected on the basis that the type of product is a continuous model,
considering that the products are desirable from different sectors.
- The project system of the factory as shown in the following block diagram starting from
entering raw materials which are :
Raw Source Supplying Troubles Substitute

material
1-There is no natural gas
in desired pressure,
quantity and quality.
south gas 2- limitation the quantity of
Natural gas company by pipe lines natural gas by southern No spares
region committee when
the priority is for electrical
stations (ministry of
electricity)
1- Impurities and sludge in
1-Fao- salt
Industrial saltcellar by trucks No spares
salt 2-Samawa- 2- Samawa saltcellar
saltcallar region is far-away from
Basrah
1- Storage way is difficult
because it must be stored
in very cool room -32C°
by contracts , it 2- Catalyst room inside rehabilitating and
Catalysts foreign is transported factory is not efficiency regular maintenance
countries by refrigeration and needs rehabilitation for catalyst rooms
trucks and regular maintenance
3- Some times the catalyst
does not reach in a limited
time as contracts
Production Process
- Ethylene factory
Design capacity: 132000 tons annually
Privilege Company: Lummis/American
Ethylene is produced from the natural gas, and production of Ethylene passes through two stages:
1. stage of Ethane production
2. stage of Ethylene production
The ethane system was designed to produce 23.9 tons per hour, around 168128 ton of ethane per
year, at a percentage of 97.2, mol% of the natural gas. The quantity of natural gas used depends on
the percentage of ethane which varies among (12%, 16% & 19%).
The ethylene system was designed to produce 19.77 tons per hour, around 132015 ton of ethylene per
year, at a percentage of %99.9. The material was balanced on 7000 operating hours per year.
The process of ethane and ethylene production goes through the following stages:-
1- AMINE SYSTEM
In this system, the natural gas is extracted from the carbon dioxide using the amine solution by
absorption inside the tower DA-1101 where the carbon dioxide is removed into the atmosphere.
38
2- ETHANE SYSTEM
In this system, methane gas is separated after the process of cooling and separation of natural
gas. Methane is separated into the tower DA-1201 and used as fuel inside the plant and used as
fuel for power generators and boilers in the power department. In the utility department, the
ethane gas is also separated in the tower DA-1202, cooled and stored in SURGE DRUM to be
introduced into thermal breakers to produce ethylene.
3- FURNACES SYSTEM
Ethane is evaporated before it entered into the furnaces where the furnaces crack interance
temperature at a temperature of 852 °C and ethane is interred with the 1:3 dried steam. 60% of
the interance ethane is converted to different gases, including ethylene. The resulting gases by
special heat exchangers are cooled in special exchangers to a temperature of 315 °C.
4- QUENCHCOOLING SYSTEM
In this system, the thermal cracking outlet of ethane are cooled to a temperature of 40°Can
disposed from the heavy hydrocarbon materials in the tower DA-1301 and water is produced at
80 °C to be used in heat exchange operations for a number of heat exchangers.
5- COMPRESSOR SYSTEM (CHARGE GAS GB -1401)
In this system, the process of raising the gas pressure with five stages of pressure (KPA-3763
KPA40) and separation of heavy hydrocarbons and heavy water from the gases resulting from
the process of thermal cracking, and between the third and fourth stages of this stage , these
gases of carbon dioxide and gas hydrogen sulphide are clearanced in the tower DA-1401 by
using sodium hydroxide.
6- ETHYLENE SYSTEM
This system consists of several stages:
First: the production stage of methane and hydrogen after the drying of gas in the dryers FF-
1401 are cooled in several heat exchangers working with propane gas .Methane gas is
separated in the tower DA-1501 at a temperature of up to -98 °C and hydrogen gas is separated
at a temperature up to – 145 °C in the system COLD BOX PA – 1501.
Methane is used as a fuel and hydrogen gas in the process of removing ethane and ethylene
from the acetylene in the reactor DC-1601.
Second: the separation stage of ethylene and ethane gas and a small amount of acetylene in the
tower DA-1601 from the top of the tower and the outputs of the lower tower are sent to the flare
at present.
Third: the stage of the release of hydrogen gas from carbon monoxide in the reactor DC-1501
after its production in COLD BOX where interaction is the presence of nickel as a catalyst.
4H2+CO→H2+CH4+H2O
Fourth: the stage of the clearance of ethane and ethylene from the gas of acetylene in the
reactor DC-1501 where the process of interaction between hydrogen and acetylene with the
presence of palladium as a catalyst.
C2H2 + H2 → C2H4
Fifth: the stage of ethylene production in the tower DA-1602 where in this tower the separation of
ethylene gas at the top of the tower at the temperature of -29°C and ethane at the bottom of the
tower and at -6°C degrees and pressure HPA1968.
Ethylene is pumped into units with special pumps or cooled to a temperature of -96°C and sent
to the tank FB-9201.
Sixth: DA-1605 DA-1604 DEPROPANIZER & DEBUTANIZER SYSTEM
In this tower DA-1604, the propane and propylene gases are separated, where they are used for
cooling in the compressor GB -1701.The Butadiene gas is produced in the tower DA-1605 and
sent to the system FUEL GAS.
Seventh: THE SYSTEM OF PROPLENECOMPRESSOR GB-1801
The system consists of three stages and insure temperatures up to - 101°C used in the cooling
of gases in the system of ethane and ethylene.
Eighth: System of ethylene compressor GB-1801
Compressor system consists of three stages and includes temperatures up to -101°C used in the
cooling of gases in the system of ethane and ethylene.
39
Ninth: ISOBUTAN SYSTEM
In this system, propane gas and isobutene gas are separated by liquid gas in the two towers DA-
1204 & DA-1205. Propane is used in the compressor GB-1701 and isobutene is used in a high
density plant.
- Low Density Polyethylene Factory (LDPE)

The design capacity is 60000 tons per year
The company s privilege: The American USI Quantum Co.
The plant contains the following systems:-
Primary Compressor System and Low Pressure Compressor

PRIMARY COMPRESSOR SYSTEM
It consists of two stage:-
The First Stage/ Consists of two cylinders and the Second Stage of one cylinder.
Ethylene comes from the Ethane Ethylene unit to the first stage at 27 ° C and pressure 40 bar where
the gas pressure at this stage is increased to 98 bar and 91 °C. The gas is cooled to 40 ° C and the gas
passes to the tank to separate the liquids before entering the second stage.
In the second stage, the gas pressure is increased from 98 bar to 200 bar and temperature of 81 ° C.
The gas then cooled to 40 ° C before entering the secondary compressor. The Primary Compressor
capacity is 6 ton/hr. plus the pressure of 3 tons coming from the Low Pressure Compressor. The total
capacity of the primary compressor is 9 ton/hr.
The first stage of the primary compressor is loaded by closing the HV 5105 located on the sideway
outside the first stage and inside to the suction tank. Control of the output pressure for the second
stage of the primary compressor by controlling with the PIC 5103.
The compressor is driven by a constant-speed synchronous electric motor of 925 KW with speed of 375
r/min, which is frequency pressure type Ingersoll rand.
LOW PRESSURE COMPRESSOR

It consists of three stages:-
The First Stage: - at this stage, the coming ethylene gas (discharged) is rised from the low pressure
compressor from 30kpa to 3 bar and at a rate of 3 ton/hr.
The Second Stage: - Gas pressure from the first stage is rised from 3 bar to 12 bar.
The Third Stage:-The gas pressure coming from the second stage is rised from 12 bar to 42 bar and is
the pressure to enter the first stage of the primary compressor.
The three stages of the compressor are provided with valve lifters & clearance pocket to load the
compressor to the required pressure.
Each stage of the squeeze contains a cooler to cool the gas and a tank of knock out drum to separate
the liquids.
SECONDARY COMPRESSOR SYSTEM

It is a frequency pressured type Ingersoll- rand which is run by a constant-speed synchronous electric
motor of 5100 KW with speed of 200 r/min.
It consists of two stages and six cylinders with a capacity of 30 ton/hr.
FIRST STAGE:-
It constituted of two cylinders. This stage was fed with ethylene gas from two sources both are of 200
bar, 210 bar and a temperature of 40 °C.
The first source is the gas out let of the second stage of the primary compressor and the second source
is the gas returning from the high pressure separator after being cooled and separating liquids and wax
off in the recycling gas system.
At this stage, the pressure of the ethylene gas is raised from 200 bar to 40 ° F to 650 bar and 88 ° C
and then cooled to 40 ° C by Inter-Cooler Interface Coolers.
41
SECOND STAGE:-
Consisting of four cylinders and feeding this stage with gas coming out of the first stage and can raise
gas pressure at this stage to 2400 bar and a temperature to maximum degree of 83°C and can control
the pressure and temperature according to the operational conditions of the interaction.
The temperature can be reduced by the radiator after coolers to the required reaction temperature.
The out let pressure of the second stage depends on the type of product and is controlled by the control
PIC 5110 in the main control room, which is turn controls on the PV 5110 existing under the reactor.
The control of the amount of ethylene gas inside the reactor is controlled by HV 5107 existing in the
side stream of the second stage of secondary pressure and the outlet pressure depends on the type of
product.
REACTOR SYSTEM
The reactor is of a (R102 type)(stirred auto clave reactor), and is made of special al alloy sustain
pressure and high temperature. Reactor motor immersed in the reactor. It is a three-phase power of 75
KW and speed of 720 r/min.
The reactor is a vertical cylindrical vessel length of which is 8.4 m., inside diameter is 41.3 cm, capacity
is 0.85 m3 and the gas quantity enters the reactor is 30 ton/hr.
Rate of diversion (change) inside the reactor is from 12—18 % and according to the reaction type.
The mixer makes a good distribution for temperature and reactor components homogeneity.
The compressed gas that came out of the secondary compressor enters into the reactor through two
lines then goes through the manifold and six lines came out of the to enter the reactor. The gas quantity
entered the reactor distributed by Feed splitters valves as there is a valve at each entrance of the sixth
entrances.
Polymer is produced from the reaction of ethylene with the organic peroxides by the mechanism of the
free roots resulting from disassembly of the peroxides at reaction start step quick reactions come after
proliferate step to form the polymer. Then the ending step of reactions of free root- root comes and
other ending reactions as the following reactions:-
R - O – O – R ------------- R – O
CH2 = CH2 -------------- CH2 -- CH2
R – O -------------------- R – O – CH2 – CH2 + CH2 -- CH2
R – O - CH2 – CH2 + nCH2 -- CH 2 ---------------- R – O –CH2 (CH2 – CH2) n – CH2
CATALYST INJECTION PUMPS:-

It is consisting of three hydraulic pumps, each pump consisting of two cylinders and each cylinder has
two pistons of (Double Acting) type.
The catalyst is injected into the top reactor at three points (upper, middle and lower) .The catalyst
enters directly into the reactor, whereas it enters combined with the gas line at the middle and the
bottom point of the reactor.
The catalyst entered by the control unites at a temperature of the three places through which the
catalyst has been injected.
ADDITIVE INJECTION SYSTEM

In most cases additions have been added to maintain the chemical and physical characteristics of the
polymer during storage periods and during the subsequent operations of polymer manufacturing.
Additions are being prepared in preparation tank by dissolution of the added materials in kerosene.
Tank capacity is 1.55 m3 with blender of two speeds and an exterior lining for cooling water to be inside.
Additions are being moved to two tanks capacity of each is 1 m3 with an exterior lining to have steam of
low pressure get in.
Additions are being injected to the bottom of low pressure isolator or to the extruder body.
Diaphragm Pumps used to inject the additions due to high abrasive characteristic of E 9 material.
41
ADDITIONS USED AT LDPE PLANT:-
A1:Butylated Hydroxy Toluene (Antioxidant Agent)
E9: Diatomaceous Silica (Anti Block Agent)
E14: Poly Ethylene Glycol (Dispersing Agent)
S4: Erucylamide (Slip Agent)
A10: Di alkyl phenol sulfide (stabilizer)
PRODUCT COOLER:-
It is a dual heat exchanger pipes. The tempered water steam of middle pressure enters into the heat
exchanger exterior pipe and according to the produced polymer type to reduce the produced polymer
temperature and the gas coming outlet of the reactor.
Advantages of the product cooler are increasing the yield of product, reducing side reactions and to
guarantee the good cutting of polymer with high liquidity extent.
HIGH PRESSURE SEPARATOR:-

95% of an interacting gas separated in this separator outlet with polymer of the reactor. It is a vessel of
carbon steel of 3.8 m length and 84 cm interior diameter.
Polymer enters with gas out let of the reactor into this separator through a pipe expanding to 1.8 m
inside the separator and ends with a partition inside the separator. This partition makes centrifugal
power to separate polymer from gas as this gas goes through pipe up of the separator and return back
to the high pressure recycle system.
This separator is provided with an exterior lining to let the middle pressure steam get in. Pressure in
this separator depends on the exit pressure of the primary compressor and the temperature of 265 °C.
HIGH PRESSURE RECYCLE SYSTEM:-

Gas coming out of high pressure separator goes through this system to be cooled and separating the
accidental products from the reaction (of few molecular weights) such as wax.
The system is consisting of three parallel coolers (hot coolers) and wax (hot separator) in which gas
cooled from 265 °C to 80 °C and the tempered water is used with Nalco material added to it in these
coolers. There are three parallel coolers (Cold coolers) connected with the wax separating vessel.
Cooling water is used in these coolers in which gas is cooled from 80 °C – 40°C.
Gas stream going out of the system correlates with gas stream going out of the primary pressure
system forming an entry stream (suction) for the sub-compressor.
LOW PRESSURE SEPARATOR:-

It is a vertical vessel of 2.13 m length and 1.6 m interior diameter inside lining with a layer of Teflon to
reduce adhesiveness the polymer to separator walls.
Molten polymer of gas coming from high pressure separator enters through a pipe to the middle of the
separator and ends with a partition inside the separator where the remaining gas (not reactant)
separated at a rate of 5% whereat the gas goes out of separator top with pressure of 0.3 bar and to be
backed to the low pressure separator to cool gas and separate liquids off before entering the first stage
of low pressure system.
EXTRUDER:-
Molten polymer descending from low pressure separator is pushed by screw power to the end of
extruder where there is a screen back to get rid of polymer impurities and eliminating the oxidized
polymer.
Extruder is rotated by electrical motor that connected to the gear box a speed of which is 95- 950 r/min
whereas the extruder speed is 13- 130 r/min.
DIE PLATE AND FLY KNIFE CUTTER:-

There is a pierced plate fixed at the extruder end which polymer goes through to be like fibers. This
plate contains of 600 holes of 2.4 mm. Polymer is cut to be Polymers after getting out directly from the
42
pierced plate and cutting by fly knife cutter which is often blades rotating by electrical motor of variable
speed from 130 – 1300 r/min with capacity of 45 kw.
FLY-KNIFE WATER SYSTEM:-

Demine water is used to cool the Polymers from cutting chamber to the dryer. It is a closed system
consists of one tank and two pumps.
DRYER:-
It is a device works with a centrifugal method whereat the drying operation of grain from water and
reducing water content of the grain going out of it to less than 0.05 % H2O and the rotating speed of
the dryer is 380 r/min.
SILOES FARM:-
There are sixteen siloes for storing the produced grains. Capacity of one silo is more than 125 ton. After
the storage of grains are being completed in silo, the said silo left for eight hours under ventilation to
get rid of ethylene emitted from the grains then completing the rotating operation of the silo content
around itself for 24/hour to mix the grains to be homogenized well and get a homogeneous liquidity
guide .
Siloes Farm is supplied with a group of crystals to carry the grains for packaging and other crystals for
ventilation with others for rotating and carrying the grains to agricultural films factory.
- HIGH DENSITY POLYETHYLENE FACTORY (HDPE)

The design capacity is 30000 tons per year
The privilege company: Philips, the American Co.
The reactor used in the High Density Polyethylene is a tube-like as the letter U of 155m length and 32.2
m3 in size. The reactor is filled up with isobutene which is the middle of reaction then the reactor is still
in a state of rotating, after that raising the reactor satiation is completed (a guide of ethylene
concentration in the reactor) by ethylene and according to required grade to be produced.
Then, the reactor injected with catalyst, the evidence of having reaction is the decreasing temperature
of coolant due to heat emission of reaction. The product is like powder coming out of the reactor via
production network to trash container. After reaction stability, transfer to be to the gases pushing tank,
then the product is carried to the converting dryer whereas the isobutene gas goes back to the rotating
isobutene system via the GB 6401/S then to the sterilization tower by hot nitrogen then to be curried to
siloes of powder tank via crystals to be kept under nitrogen cover, this is the first production stage.
The second stage is to transfer the powder to the grains and that through the system of extruder and
then transfer the product to silos storage polymers and then to the packaging.
Ethylene is the ethylene plant unit that is heated and dried to a temperature of 40°C and less moisture
than in special dryers.
Isobutene /is the ethylene plant unit./The degassing operation was carried out for the isobutene to
dismiss O2,CO,N2 in towers filled with ceramic ball packed col. Then enters into dryers to get rid of
moisture to less than 1ppm and the remaining isobutene is used for the following cases: -
As make up for the rotating isobutene system to pump the catalyst to the reactor to pump DEZ and the
rotating isobutene at a temperature of 40 °C and pressure of 5000 kpa.
Manufacturing high density polyethylene depends on the technology of the American Company Philips
by Ethylene Polymerization in a Loop Reactor with a catalyst i.e.(Cr2O3).
The overall length of the reactor is 155m, 20” diameter, its size is approximately 32.3 m 3 and it has
four legs for production working on timing.
Materials enter the reaction are ethylene for Polymerization, isobutene asa carrier for the polymer and
the catalyst.
1- hexen for controlling on density and hydrogen for increasing guide of liquidity of product and
pressure is 42 ambience and temperature is 96 -110 °C.
43
The catalyst is the (Cr2O3) loaded on filaments are being activated (oxygenated) by heating with air at
a temperature reaches to 870 °C according to special heating program (depending on type of Polymer).
The produced polymer from the reactor is in powder form been changed into grains in the Extruder
system after adding heat beautifiers and others.
The factory capacity is 30000 tons a year, and each ton needs 1.1 tons of ethylene, and transfer
percentage of ethylene is around 96-98%.
Two types of polymers are produced: Homo-polymer & Co-polymer, of many classes.
Classes have been named at the SCPILEX CO. in three letters and four figures, as follows:
First letter: polymer type: E-Ethylene Homopolymer, H-Ethylene Copolymer
Second letter: Molecular weight: M-Medium, H-High, X-Extra High, U-Ultra
Third letter: Molecules distribution: N-Narrow, M-Medium, B-Broad, V-Very Broad
Fourth letter: It represents density after adding figure (0.9).
Last two figures represent index of liquidity.
Granules of polyethylene are packaged in bags of 25 kg.

Factory is followed by another factory that's a factory of colorful granules production. It's of two lines.
The first line is to produce color granules, and second line is to produce black granules like produced
types for uses of pipelines manufacturing SCPILEX – 140 and SCPILEX-140. Production is in line with
the market's demand.
- Factory of Agricultural films

This Unit uses granules of low-density polyethylene to produce plastic flake of 150-180 micron
thickness, and of 6 meters width, or upon request.
Design capacity: 15 000 tons a year
- Factory of plastic bags

This Unit produces different types of plastic bags, and each types has its own specifications, and it
uses low density and high – density granules at different percentages as a primary material.
Design capacity: 3850 tons a year.
- Factory of Compounding and Coloring

It is considered a master Batch unit for PVC Unit and low-density and high density Units, which consists
of:
 PVC Compounding: It is to produce shoes heels, water hoses and water drainage pipelines.
 PVC Compounding Master Batch: It is to produce colorful concentrates for PVC compound.
 PE Master Batch: It consists of two lines, colored and black, which produce chromaticity
concentrates related to LDPE and HDPE.
- Department of Utilities& Technical Services

This Department is considered one of the most significant departments in the Petrochemical
Complex No.1. It is of three main section, which provide power necessary for work and production
such as water, steam, electricity, etc.
1. Section of Water Treatment: This division includes the following Units:
Raw Water Pump System
 This Unit is located on the banks of Shatt al-Arab, al-Muftia area. This Unit pumps raw water
to the Company at Khur al-Zubair by a pipe of 32 inches diameter, with amount of 1600
M3/hour. In this Unit, chloride is used and anticorrosion. The Unit is 37 km away from the
Company location.
44
Fire Water System:
It consists of 4 fire water pumps, three of them are operated via a diesel–based engine, and another
one is operated via an electric engine. Capacity of a pump is 568 M 3/ hour, with 10.34 pressure bar.
Unit of Producing Fresh Water:
This Unit produces fresh water (filtered) by using sand settlers and filters, where chloride, alum and
polymer. Production capacity is 1200 M3/hour.
Unit of the RO Water:
This Unit produces sweet water by the process of Reversible Osmosis (RO). Its capacity is 1000
m3/hour. It supplies the Unit of Ionic Exchangers and staff and complex houses with drinking water.
Salt-Free Water Unit:
This Unit disposes RO. Water of positive and negative ions. Unit capacity is 320 M3/hour. It provides
steam boilers with water.
2. Steam Boilers & Technical Services:

This section consists of the following units:
- Unit of steam boilers: There are 4 steam boilers, capacity of each is 131.7 ton/hour, of 42
pressure bar, and of 390 Co. Boiler is operated using gas fuel, and steam is used to run huge
turbines in production units. Also, steam is used in production processes.
- Unit of Compressed Air: It consists of 5 central compressors, which supply Company factories
with air for instrument and uses, with amounts of 8000 M3/hour.
- Unit of Nitrogen Production: This Unit produces 1660 M3/hour of Nitrogen through process of air
liquidation. Nitrogen is used in production factories. A new Nitrogen Unit is established. It is of a
production capacity.
3. section of Cooling Towers & Industrial Waters

 Cooling towers consist of two towers, each has five cells plus huge fans designed to
withdrawn air with a common pool. Tower is made of concrete. Tower is designed to cool
down water from 43 Co to 32 Co. There are four pumps to circulate cooled water, two of them
are circulated by an electric engine, and other two by a steam turbine engine. Capacity of
each pump is 12000 M3/hour, of 5 pressure bar.
The following chemical materials are injected:
Anticorrosion, Chlorine and Sulphuric Acid.
 Industrial Waters Treatment System: It consists of a station for sewage treatment for all
company regions, and a station for consumed soda treatment from Ethylene factory, and a
burner for burning solid materials.
- C- Department of Power Generation

It is of four gas turbines (A, B, C & S)
Turbines A, B, C Frame 5, MK 5 , Turbine S Frame 5, MK 6
Designed Capacity of the Turbine: 20 MW
Available Turbine Capacity: 17 MW
Voltage: 11.5 KV
Comprehensive maintenance was conducted to the Turbine S by GE. During maintenance,
old parts were replaced by new ones, and control system was replaced from MK2 to MK6,
and starting-up was executed on 13/05/2005.
Comprehensive maintenance was conducted to the Turbines A, B &C by FLOUR& BTEC
Companies. During maintenance, old parts were replaced by new ones, and quality control
system was replaced from MK2 to MK5, and starting-up was executed on 10/04/2006.
Therefore, the station Units are operated by a new PLC system, and each turbine is
furnished with a computer, in addition to the central computer located in the main control
room.
The Station has three diesel-based generators for emergency, capacity of each is 825 KV, of
400 V, inoperable, and the fourth of 1000 KW capacity, and of 44 V, operable.
45
Steam + water + electricity
Compressed air + N2 To all LDPE pellets
Raw water
units
Utility & service LDPE
Pellets Agriculture films
unit Ethylene Agriculture
LDPE Plant films Plant
Plastic Bags
Natural Gas Plastic Bags
Ethylene Plant
Ethylene Plant
HDPE Plant HDPE pellets
Ethylene
P.V.C
VCM P.V.C
V.C.M Plant
Salt Chlorine Plant
Chlorine & Soda
Plant
Chlorine
Caustic soda
46
- The production capacity will increase depending on investment planning for five years as
in table below:
Production Capacity Increasing in 5 Years (ton/year)
Designed
Item 2018 2019 2020 2021 2022
Capacity
Ethylene 132000 50000 99650 130450 130450 130450

HDPE 30000 15000 30000 30000 30000 30000
LDPE 60000 30000 60000 60000 60000 60000
Agri. Film 15000 7500 15000 15000 15000 15000
Chlorine New -- -- 46200 46200 46200
Soda Flakes plant -- -- 51810 51810 51810
VCM 66000 -- -- 66000 66000 66000
PVC 60000 -- -- 60000 60000 60000
 The production in the first year will be for the last six months only.
Production for next five yearse

140000
120000
100000
80000
60000
40000
20000
0
Ethylene HDPE LDPE Agri. Film VCM PVC chlorine soda
The expected production cost and utilities are as follows:
Cost of raw materials& Salaries average Total costs

Production
transportation … (million dinar/
years million dinar million $
(million dinar/ year) year)
2018 43970 52000 95970 82.732
2019 72718 52000 124718 107.515
2020 97000 52000 149000 128.448
2021 97000 52000 149000 128.448
2022 97000 52000 149000 128.448
- VCM plant needs 40100 ton/year chloride liquid.
Future state supply chain

There is no danger in terms of supplying the factory with the raw materials necessary for operation,
most of which are local, with the company maintaining continuous operation, upgrading the company
to the best level and thinking about how to obtain distribution channels for products.
47
Partnerships
- It is preferable to sign partnerships with gas production companies to secure company
needs for gas and returning the aside products to them to benefit from them.
Quality Assurance
To obtain ISO certification the project must be passed six stages:-
1. Guidance and preface

2. Preparation
3. Documentation
4. Application
5. Revision
6. Recording
These stages demand (12-24) months for enough duration in the presence of experienced
factory for preparing ISO with high experience.
- The benefit of ISO management system is as below :-
1- Increasing arrangement inside the factory

2- Administrative discipline
3- Teamwork education
4- Decreasing the total costs
5- Developing and reaching to high production
6- Improvement the type of product and searching another new grades may be produced
7- Increasing marketing product and open new international marketing
8- Realizing or achieving the stability for the factory
9- Continuing for development in production and competition
- The common media now to control the quality and inspection for product is as follows :-
1. Buying the raw materials and catalysts within accredited specification under authority,
analyzing and inspecting the quality control and inspect committee at delivering the materials.
2. Controlling the product operation within lab. Inspection (chemical analysis lab, wet Lab. and
gas analysis lab.).
3. Defining the specification of product grade, grade degree and the lab tests for every stage of
production in polymer lab. & giving them a (lot number) and final certification inspection.
4. Inspecting the product within storage.
5. Inspecting covering, delivering and storing.
6. Following the product with customers to stand up the problems during the manufacture.
48
6- Opportunities & Risks
Opportunities and Exploitation
The Opportunities & exceptional trading abilities for the factory products are as follows:
 The petrochemical plant is located in Basrah / Khor al-Zubayr, 28 km south of Basra city and 40 km
northwest of Umm Qasr port.
 The company is the only one in the country which produced plastic grades, these products are
accepted by many customers from the private and public sectors because of the quality of our
products compared to the products of the neighboring countries (Gulf Countries and Iran), they are
produced with high pressure reactors so these products has good mechanical specifications
(explained in Chapter 2).
 An investment file has been prepared for the rehabilitation of the production line (ethylene / high
density polyethylene / low density polyethylene) and its units and supporting sections in the factory.
Approval of the establishment of a new plant for the production of chlorine / caustic soda in the
factory was also obtained in the form of partnership with the private sector to improve the company's
current situation.
 The company exists near the Basrah harbor which makes easy exporting process.
 It's expected by the government to impose laws on imported items, which will make the prices of
competitors is higher than our prices.
 The factory management has good experience and efficiency qualify them to manage, run & keep
the company in such exceptional circumstances. The administrative department controls its duties
through several systems in the computer system such as people, personnel, etc. with the need to
build their capabilities, especially in the field of marketing, maintenance, production and
programming technical processes to ensure their performance and progress which happens in
many developed countries because Iraq was far from the outside world for long periods.
 The MOIM has the intention to support industrial projects, plastic production factories are one of
them by giving them loans so the production will increase and then the demand on the company
production will increase too. In the case of improvement of the electrical power system in Iraq, the
plastic production plants will increase their production, which increases the volume of demand for
the company's products
 The petrochemical factory has big electricity generator with design capacity (4 × 20MW/hr.), so it is
self-sufficiency but now they need to rehabilitation, there were two contracts with the John Brown
Company and the Hydraulic Industries State Company rehabilitate the four gas turbines.
Risks:
- The products of the factory are exposed to major risks , they are :
1. Market Risks: The emergence of new varieties of plastic granules produced by the Gulf and
Iranian companies and there are no new varieties in our company compared with these items
because of needing of the company's factories to rehabilitation as well as the entry of products
similar to the factory products at prices lower than the prices of factory products, It can be avoid this
risk by operating the production plants of the factory and the application of the law of protection of
the national product in addition to thinking of the production of new varieties to keep pace with the
development in the local market where there is no plan for the company to produce such items
currently (after the completion of the rehabilitation).
2. Finance Risks: The company has no capital to be capable of rehabilitating its units and raise their
capacities, we can reduce these risks by operating the factory production plants or investment
3. Politic Risks: There are no politic risks influenced on the company.
4. Operating Risks: The increase in the prices of raw materials (natural gas), which is affected by
the increase in crude oil prices as well as the lack of natural gas and therefore the lack of gas
pressure because there are no investment of southern gas completely so far, this problem can be
49
overcome after the investment of the southern region and the availability of natural gas by the oil
pipeline company.
5. Materials Risks: There are no natural disaster risks.
- There are no contingency plans at present because in case of stoppage the natural gas there is
no spare in time, as well as there is no future sight (correctly) to the market volume or to demand
of products.
- Investment plan has been considered for two years with capital of (237.58) M$ where the
production capacity will be 100% of designed capacities (for HDPE, LDPE, Agricultural films,
VCM & PVC plants) and 100% for the new Chlorine and Soda plant. - The expected revenues will
be (243.548) M$ yearly after rehabilitation in the 3rd year which consider as best scenario.
When no investment money will be obtained we can shrink the money to (86.3) M$ spent on
rehabilitation of Ethylene, HDPE & LDPE plants as well as Utility unit.
The factory has gotten (120) billion dinar since 2008 from MOIM to rehabilitate its units to reach
60% of HDPE and LDPE plants.
51

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State Company for

Chlorine liquid & Tissue paper

Capacity after Competitors

High density poly Our products have

produced from products has good Private

Emploees Education in 31-7-2018

7- Opportunities & Risks

9- Implementation plan and Project system

1- Natural gas to produce ethylene.

 (C67) Tertiart Butyle Peroxy – 2 - Ethyl Hexanote

 (C32) Tertiary Butyle Peroxy Pivalate

 (C2) Di - Tertiary Butyle Peroxide

 (C11) Tertiart Butyle Perbenzoate

Utility & Service unit 16.95 Services (water, steam ,….)

Development in revenues & profits for investment years

-60 -51.809 -49.818

The storage capacity is (7000) tons.

Customer value proposition

Grade B - value K- Density Usage

Desc. Unit Value

Desc. NaClO3 Na2SO4 Fe SiO2 Na2CO3 NaCl NaOH

Customer segments and their needs

HDPE 22500 22500

a. The Qatar Company (SAPCO).

b. The Saudi Company (SAPIC).

c. The Iranian Company

These companies give the products below (with delivery):

- The petrochemical factory products consider to have continues competition advantages

PVC PVC -- PVC ( hasn't produced --

LDPE N-118 (Kuwaiti) LDPE 463

HDPE 60888 (Kuwaiti) HDPE 6003

HDPE TR-401 (hasn't

HDPE 5429 (Saudi) HDPE 6003

1. Guidance and preface

Production of intellectual property

Emploees Education in 31-7-2018

- The employment levels are as below:-

-The peak employment was in 2010.

Coordination & Mass Secretarial & Baghdad Bureau

1- Quality Control Dept. Chemical tests & quality control of products

1 Kalid Kadhim Naji Direct manager Science Bachelor 27 2015 Chemical

Skill and people gaps

Human Resources Implementation Plan

- The sales from 2015 to 2017 are as the tables below:

Sector 2015 2016 2017

3- Plastic bags Sales (the percentage of customers possessing)

Sector 2015 2016 2017

Sector 2015 2016 2017

HDPE 22500 22500 100%

2015 2016 2017

2015 2016 2017

Products Customers Percentage of Percentage of Percentage of

Agr. public sector 4 30% 15.5 3% 4 31%

Percentage of sales Percentage of sales Percentage of sales

Local market volume ton/year Factory

80000 market volume

Expected market growth

23410 23870 24355

market volume (ton)

2018 2019 2020 2021 2022

2018 2019 2020 2021 2022

410410 private sector