19

The demand of sulphuric acid is projected to rise at an average annual rate of

almost 2.5% during the next five years with the demand in fertilizer for sulphuric acid is
forecast to grow at about 2.3% during 2011-2016.
(Source: http://www.ihs.com/products/chemical/planning/ceh/sulfuric-acid.aspx)

2.1.2. Malaysia Demand

Malaysia can be considered as one of country that is demand in sulfuric acid.
This is due to the growth of certain industries in this country for example fertilizer
industry, petrochemical industries and palm oil industries that require the present of
sulfuric acid as one of the material to be used in the production of their products. The
present of these industries is to be seen as an opportunity for us to build a plant located
in Malaysia. Figure 2.2 and 2.3 shows some of example of potential customers and
buyers:


Figure 2.2: Location of Figure 2.3: Location of CCM agriculture
Petrochemical company own by company around Malaysia.
Petroleum Nasional Bhd
(PETRONAS)
20


2.1.3. Market Sales


Figure 2.4: Graph of sulfuric acid price (US$ per tonne) vs year.

Based on the graph in Figure 2.4, it shown that the price are stable estimated
about 50 US$ per tonne from 2003 to 2007. The price having a sharp price spike in 2008
where the price are up to 400 US$. However, the price was then collapse in 2009 and
steadily increase to about 150 US$ per tonne at the end of 2012.

Mat King et al, (2013) in their book of sulfuric acid manufacture stated that at
2008, the price spike is due to the sharp increase in Chinas Demand for metals and
chemicals, all of which require sulfuric acid for their manufacture. Besides that, the
sharp increases of price demand during that time was because the inability of the
worldss sulfuric acid producers to rapidly increase their acid production rate which
means that they are not able to meet the increase demand.

Meanwhile, there is a fall price in 2009 and the reasons are reverse of the above.
The demand for metals and chemicals in China was decreased sharply and leads to the
21

sharp decrease in acid demand and a glut of sulfuric acid at the worlds Cu, Zn, and Ni
sulfide smelters. In some cases, in order to avoid shutting down a smelter, the acid had
to be given away.

However, the price was started to increase back starting from 2010 until the end
of 2012. The price is believe to continuously increase after 2012 and due to the market
demand especially in the phosphate fertilisers industry and other wide variety industry
(Mat King et al, 2013)

2.1.4. Demand in Fertilizer Industry


Figure 2.5: World and Regional phosphate fertilizer demand forecast
22

(Source: Food and Agriculture Organization of The United Nation, Rome, 2011)
Growing demand for crops requiring additional fertilizer can be the reason of
increasing the use of sulfuric acid as this acid are one of the material that used to make
the phosphate fertilizer. Plants and animal require phosphorus to growth. Phosphate
fertilizer are able to provides the phosphorous element of the nitrogen-phosphorous
potassium mix that fertilizer provides for plant. The increase in population and the
extent to which people in the developing world switch to increasingly nutrition-rich food
crops that require enough quantities of fertilizers can be one of the reason of growth in
sulfuric acid consumption. The rise of income in the middle class people has resulted in
richer diets with increasingly higher nutritional value.

Based on the Figure 2.5, it shows that the demand of the fertilizer increase each
year and it was predicted that the demand of the phosphate fertilizer will be more
increase on the year of 2014, onwards. From the data, Asia will be the higher regional
who demand for the fertilizer. This means that, the demand for the sulfuric acid are
higher around this area too. This is then followed by America, Europe, Ocean, and
Africa. However, referring to the compound annual growth rate, the country that show
larger growth rate for each year is Africa.

2.1.5. Demand in Metal Processing

In the processing metals, sulfuric acid is serves as pickling (cleaning) iron and
steel before plating them with tin or zinc. It also use in metal industries in the
maintenance or cleaning of the equipment for example pipeline to remove the scale from
the surface of steel and iron to stick at the pipeline that can cause blockage. The demand
of sulfuric acid will increases as the demand of this metal iron and steel are increasing
too.

23

According to the IHS Chemical in their planning services in Chemical
Economics Handbook, The demand for sulphuric acid is expected to rise with increasing
in the mining operation. Nickel and copper ore leaching projects worldwide increased
demand for sulphuric acid by over 8 million metric tons between 2009 and 2012. With
copper prices at record highs, demand for copper leaching, particularly from Chile, will
be increasing year by year.

Table 2.1: Chilean Sulfuric Acid Production and Apparent Consumption (1999-2008)

(Source: Chilean Copper Commission, Research Department, April 2009.)

2.1.6. Demand in Petrochemical Industry

The increase demand of petrochemical products is also increase the demand of
sulfuric acid. This is due to the function of sulfuric acid itself as dehydrating agent to
this product. It is used to remove water from organic compound to obtain pure products.
The organic chemicals with the largest production volume in the petrochemical industry
are for example methanol, ethylene, propylene, butadiene, benzene, toluene and xylene.
24

Figure 2.6: Global ethylene equivalent production capacity and demand.

Pure ethylene are able to obtained when the ethanol are dehydrating by using
sulfuric acid. The demand of ethylene increases due to its multi uses in the industry. The
application of ethylene can be seen for example in botany, ethylene acts as plant
hormones that inhibit growth and promote leaf fall. In fruit, ethylene used for
accelerating and ripening it for example bananas. While, in polymer industry, ethylene
undergo a polymerization process and transform to polyethylene for the uses of plastic
materials. Figure 2.6 shows the global demand of ethylene. Based on the Figure 2.6, it
shows that the demand is mostly increasing each year starting from 2001, continue to
2009 until 2014. The figure shows that among all country, Asia is the highest demand
for this products. As being known, Asian include Malaysia are famous with the botanical
fruit that are tough with the high temperature for example banana. This is might be one
of the reasons why ethylene demand in Asia is high compare to other countries. The
demand of this ethylene will leads to the demand of sulfuric acid as sulfuric acid is used
as dehydrating agent from ethanol to ethylene.
25

2.2. Product Competitors
As with any businesses, we have our local and international competitors. Details
of each competitor are explained as below.

2.2.1. Local competitors

Competitor or rival means an organization or country that is engaged in
commercial or economic competition with others. It is necessary to identify our main
competitors to develop effective marketing measures to compete against our rivals. In
addition, the strengths and weakness of our competitors has been analyzed in terms of
price supply and total capacity. The Table 2.2 shows the major local competitor in
Malaysia that produces the same product which is sulfuric acid.

Table 2.2: Major local competitors of production sulfuric acid
No Company
name
Address Contact No. Capacity
(metric
tonne/year)


1.

Malaya Acid
Works Sdn.
Bhd.

Lot 17 Jalan 219
Off Federal Highway
46100 Petaling Jaya
Selangor Darul Ehsan
Malaysia

Phone: +60(3)7876 0144
Fax: +60(3)7875 0022
[email protected]
18,250



2.

See Sen
Chemical
Berhad

Lot PT 3940
Kawasan
Perindustrian
Teluk Kalong
24000 Terengganu.

Phone: +605 323 2218
Fax: +605 323 3126 255,500


In addition to local competitors, there are other international competitors that
supply the same product. Our aim is to challenge the local market and also to enter the
global market to produce high quality of sulfuric acid. The following tables shows
several companies that have larger production of sulfuric acid.
26

Table 2.3: International competitor of production sulfuric acid in North America region.
NORTH AMERICA
No. Company name Address Contact No.
Capacity
(metric
tonne/year)
1.
PVS Chemical
Solutions Inc.

10900 Harper Avenue
Detroit, Michigan 48213
Phone: (313) 921-1200
Fax: (313) 921-1378
120,450
2.
General
Chemicals LLC

90 East Halsey Road
Parsippany, New Jersey
07054
Phone: (973) 515-0900
Fax: (973) 515-3232
Customer Service: (800) 585-
6844
[email protected]
206,590
3.
Cornerstone
Chemical
Company

10800 River Road
Westwego, Louisiana
USA 70094
Phone: (504) 431-9511
Toll free: (888) 531-9511
sharon.broussard@cornersto
nechemco.com
350,400











27

Table 2.4: International competitor of production sulfuric acid in South America region.
SOUTH AMERICA
No. Company name Address Contact No.
Capacity
(metric
tonne/year)
1.
Akzo Nobel
Functional
Chemicals S.A.

Buenos Aires
Av. Paseo Colon 221
C1063ACC Buenos Aires
Argentina
Phone: +54 11 4343 2011 89,425
2.
Compania Nitro
Qumica
Brasileira

Av Dr. Jose Arthur Nova
951
Sao Miguel Paulista, Sao
Paulo
SP 08090-000
Brazil
Phone: (11) 2246-3100 / (11)
2246-3460
265,355
3.
Industria
Slfurica
Sociedad
Annima
(ISUSA)

Route 1 km 24
s/n San Jose
80000
Uruguay
Phone: (+598) 2347 2035 68,000


28

Table 2.5: International competitor of production sulfuric acid in Europe country.
EUROPE
No. Company name Address Contact No.
Capacity
(metric
tonne/year)
1.
Sachtleben
Chemie GmbH

Sachtleben Chemie GmbH
Dr.-Rudolf-Sachtleben-Str.
4, D-47198 Duisburg
Phone: +49 2066 22-0
Fax: +49 2066 22-2000
[email protected]
730,000
2.
UBE Chemical
Europe SA

Polgono Industrial El
Serrallo s/n
Castelln de la Plana
Spain
12100

Phone: +34 964 738000
Fax: +34 964 280013
90,000
3.
Ineos Fluor
Limited

INEOS Enterprises
Enterprise House
South Parade
PO Box 9
Runcorn
Cheshire
WA7 4JE
Sulphur Chems: +44 (0)
1928 517456
Other products: + 44 (0)
1928 517388
Fax: + 44 (0) 1928 514620
Email: chemical-
[email protected]
m
282,875


29

Table 2.6: International competitor of production sulfuric acid in Australia country.
AUSTRALIA
No. Company name Address Contact No.
Capacity
(metric
tonne/year)
1.
Sun Metals
Corporation Pty
Ltd.

1 Zinc Avenue
Stuart,
Townsville,Queensland
4811 Australia
Phone: +61 7 4726-6600
Fax: +61 7 4726-6300

350,000
2.
BHP Billiton
Limited

BHP Billiton Centre
171 Collins Street
Melbourne Victoria
Australia 3000
Phone: 1300 55 47 57
[Australia]
Phone: (61 3) 9609 3333
[International]
Fax: (61 3) 9609 3015
821,980
3.
Energy
Resources of
Australia
Limited (ERA)

Level 3, Energy House
18-20 Cavenagh Street
GPO Box 2394
Darwin NT 0801
Phone: +61 (0) 8 8924 3500
Fax: +61 (0) 8 8924 3555
[email protected]
91,250


30

Table 2.7: International competitor of production sulfuric acid in Africa country.
AFRICA
No. Company name Address Contact No.
Capacity
(metric
tonne/year)
1.
Drury Industries
Limited

Drury Industries Ltd
Plot C21/3
Anioma Road
Agbara Estate
Ogun State
Nigeria.
Hemant Parikh
Phone: +234 (0) 7025281300
Phone: +234 (0) 8055204320
H.Parikh@drury-
industries.com
182,500
2.
Chemical
Initiatives

PO Box 293,
Umbogintwini 4120
South Africa
Phone: +27 31 904 9900
Fax: +27 31 904 3119
[email protected]
199,655
3.
Industries
Chimiques du
Sngal (I.C.S.)

Darou Khoudoss
BP 3835
Senegal
Phone: (221) 33 939 55 00
Fax: (221) 33 955 61 17
2,044,000


31

Table 2.8: International competitor of production sulfuric acid in Asian country.
ASIAN
No. Company name Address Contact No.
Capacity
(metric
tonne/year)
1.
LMG Chemicals
Corporation

Chemphil Building
851 Antonio S. Arnaiz
Avenue
Legaspi Village, Makati
City
Philippines
Phone: (632) 818-8711
Fax:
(632) 817-4803
(632) 813-7965
[email protected]
m.ph
114,000
2.
Bodal Chemicals
Ltd.
Plot No. 123-124 Phase
I G.I.D.C.
Vatva
Ahmedabad-382 4450
Gujarat
India
Phone:
+91-79-2583 5437
+91-79-2583 4223
+91-79-2583 1684
Fax:
+91-79-2583 5245
+91-79-2583 6052
[email protected]

237,250
3.
Yunnan Furui
Chemical
Company Ltd.







No. 1417 Dianchi RD,
650228 Kunming, China
Phone:
General Managers Office
0871-64327130
Fax: 0871-64327132

Marketing Department:
0871-64327114
Fax: 0871-64327132

Sales Co: 0871-66280389
Fax: 0871-66280401

Service Counter:
8008897766
[email protected]

800,000



32

2.3. Potential Customers

Sulfuric acid being used in local and worldwide production especially in
fertilizer industry, lubricant and paint industries, mining industry, pigments industry and
also any other direct uses. On the other hand, the demand for this product has been
increases based on all of these industries which are used sulfuric acid as one of its raw
material in its production. The potential customers are divided into local customers who
are the customers in Malaysia only and also international potential customers. The
potential customers are separated based on different industries needed.

2.3.1. Fertilizer Industry

The demand of sulphuric acid for this industry is quite higher compared to other
industries. This may due to the needed for the fertilizer especially in the Malaysia itself
and also in other countries such as India, Thailand and China. Thus, by looking at this
potential value, decision had been made to make a fertilizer industry as a main focus to
be the biggest consumer of supplying acid. In Table 2.9 and Table 2.10 are the list of
local international potential buyer in fertilizer industries.


33

Table 2.9: Local Potential Customers in Fertilizer Industry
No.
Company
name
Address Contact No.
1.
Greenearth Intl
Holdings Sdn
Bhd
No 35, Jalan Sultan Alam Shah,
42700 Banting, Selangor, Malaysia

Phone: 603-31873933
Fax: 603-31813396
[email protected]
2.
Gremont
Agrochem
(Malaysia) Sdn.
Bhd
No. 7, Jalan Nilam 1/8, Taman
Perindustrian Tenologi Tinggi, 40000
Shah Alam, Selangor D.E, Malaysia

Phone: 60-3-5637-1367
Fax: 60-3-5637-1375
[email protected]
3.
Shama
Fertilizer
Trading
Company
Kulim 1/ Kulim 2 Lot 8 Jalan Hi-tech
2/3 Hi-tech Park, 09000 Kulim,
Kedah, Malaysia

Contact Person: Nazim
Phone: 60-111-5611601
[email protected]
4.

Tm-Kay
Fertilizers Sdn
Bhd
Lot 55709, Westport Dry Bulk,
Terminal 2,
Pulau Indah, 42009 Port Klang,
Selangor Darul Ehsan, Malaysia

Phone: +603-3101 1111
Fax: +603-3101 1777
[email protected]
5.
Behn Meyer
Agricare (M)
Sdn. Bhd
No. 5, Jalan TP2, Taman
Perindustrian Sime UEP, 47600
Subang Jaya, Selangor Darul Ehsan,
Malaysia

Phone: +60 (3) 8026 3333
Fax: +60 (3) 8026 3399
[email protected]
6.
Narsco-Kuok
Fertilizers Sdn
Bhd
Plo 66, Jalan Baja, Kawasan
Pelabuhan Johor,
P.O.Box 114,81707 Pasir Gudang,
Johor Darul Takzim, Malaysia
Phone: +607-252 7777
Fax: +607-251 8233

7.
Chemical
Company of
Malaysia
Berhad (CCM)
13th Floor, Menara PNB
201-A, Jalan Tun Razak
50400 Kuala Lumpur
Malaysia

Phone: +603-2612 3888
Fax: +03-2612 3999

34

Table 2.10: International Potential Customers in Fertilizer Industry
No.
Company
name
Address Contact No.
1.
Gujarat State
Fertilizers and
Chemicals


P.O. Fertilizernagar 39/750, Dist.
Vadadara, Gujarat, India

Contact Person: AG Kikani, Sr.Mgr (Tech
Services)
Phone: +91-265-
2242451/2242651/22422751
Fax: +91-265-2240966/2240119
[email protected]
2.
Yang\s
Industrial Co.
Ltd
725, Bangna-trad, Bangkok,
Bangkok, Thailand

Contact Person: Mr. Yan
Phone: 66-02-7440669
3.
Vision Mark
Biotech
Yash Plaza-1, RH-199, G-Blockm
Mlbc, Sambhajinagar, Chinchwad,
Pune, Maharashtra-411019, India

Contact Person: Mr. Ganesh S. Labade
Phone: +91-8108269842/8855808014
4.

Agora
International
Trading
11 Collyer Quay, #13-05, The
Arcade, Singapore 049317

Phone: +65 6304 8051
Fax: +65 6223 7064
[email protected]
5.
Anhui Ruifeng
Fertilizer
Trading Co.,
Ltd
1777 Road, Hefeim Anhui Keemun
Lung Fai Building, 15
th
Floor, 230022
China

Phone: 0551-62,852,555
Fax: 0551-62,852,566
[email protected]
6.
CP Agro
Tawandang Ltd
No. 729/1, Prayasuren Rd Khlong
Sam Wa, Bangkok 10510.
Phone: 02-919-3295
Fax: 02-919-3296
[email protected]
35

7.
Ruwais
Fertilizer
Industries
(FERTIL)
Sheikh Khalifa Energy Complex,
Khalifa Street, Abu Dhabi, United
Arab Emirates
Phone: +971 2 602 1111
Fax: +971 2 602 6800
8.
Chia Tai Co.,
Ltd
299-301 Songsawad Road,
Samphantawong District,
Bangkok 10100, Thailand.
Contact Person: Mr. Sukasom Jatukaranee
Phone: +66 (2) 233-8191 ext 126
Fax: +66 (2) 639-1809
[email protected]


2.3.2. Metal Processing Industry

The second highest demand of sulfuric acid is in metal processing industry
especially in the production of ores by using process of hydrometallurgical ore. Other
than that, from the previous chapter already been mention that plating process or
production of nonferrous-metal purification is also involving a wide used of sulfuric
acid. There are a lot of companies major in producing this metal ore either local or
international. Thus, there are also the potential customers that may be a link towards our
companys business line. Table 2.11 and 2.12 are the lists of companies which may have
potential to be a part of consumer of sulfuric acid.






36

Table 2.11: List of local potential customers in metal ore processing
No.
Company
name
Address Contact No.
1.
Prestar
Resources
Berhad
Lot 1298 Rawang Industrial Estate,
16 Miles, Jalan Ipoh, 48000
Rawang, Selangor Darul Ehsan,
Malaysia

Phone: 03-60925200
Fax: 03-60925203
[email protected]
2.
SGS (Malaysia)
Sdn. Bhd
Unit 10-1, 10th Floor
Bangunan Malaysian RE
No 17 Lorong Dungun
Damansara Heights
Kuala Lumpur, Selangor, 50490

Phone: +60 (3) 2095 9200
Fax: +60(3) 2095 6091
[email protected]
3.
PPI Industries
Sdn. Bhd
2431 Lorong Perusahaan 10, Prai
Industrial Estate Prai 13600, Penang,
Malaysia
Contact Person: Ms. Ann Lee
Phone: 6-04-3907960
Fax: 6-04-3997278
4.
Ann Joo Steel
Berhad
Ann Joo Building, 2610, Tingkat
Perusahaan Prai, Kawasan
Perusahaan Prai, 13600 Prai, Penang,
Malaysia
Phone: +604-3888 8300
Fax: +604-390 4534
5.
Southern Steel
Berhad
2723 Lorong Perusahaan 12, Prai
Industrial Estate, 13600 Prai, Penang,
Malaysia
Contact Person: Mr. Mo Kwan Chung
Phone: +604 390 6540
Fax: +604 390 8060
6.
Perwaja
Holdings
Berhad
Level 31 Maju Tower, 1001 Jalan
Sulatan Ismail, 50250 Kuala Lumpur,
Malaysia
Contact Person: Ms Yan Yuet Fun
Phone: +603 2772 8988
Fax: +603 2772 8973
[email protected]







Table 2.12: International Company in Metal Processing Industry
37

No.
Company
name
Address Contact No.
1.
Pittsburgh
Metal
Processing Co.,
Inc


1850 Chapman Street, Pittsburgh, PA
15215-2791, U.S

Contact Person: Jeff Litzinger
Phone: (800) 323-7331
Fax: (412) 781-8185
[email protected]
2.
Korea Zinc Co.,
Ltd
142 Nonhyeon-dong, Gangnum-gu,
Seoul, Korea
Phone: 82-2-519-3416
Fax: 82-2-549-8245
www.koreanzinc.co.kr
3.
Vision Mark
Biotech
11F and 12F, Baeksang Building,
#197-28 Gwanhundong, Jongno-gu,
110-300 Seoul, Korea

Phone: 02-399-1200
Fax: 02-732-4214/5143
www.hccapro.co.kr
4.
TongLing
Nonferrous
Metals Group
Holding Co.,
Ltd
West Changjiang Road, Tongling
City, Anhui Province, 244001, China
Phone: +86-(0)562-5860016
Fax: +86-(0)562-5861313
[email protected]
5.
Padaeng
Industry Public
Company
Limited
CTI Tower, 26
th
-27
th
Floor, 191/18-25
Ratchadaphisek Road, khlong Toei,
Bangkok 10110, Thailand
Phone: +66 (0) 2695-9499
Fax: +66 (0) 2695-9495
[email protected]
www.padaeng.com






2.3.3. Maintenance and Pipeline Services Industry
38


Another industry that very familiar in the uses of sulfuric acid is the maintenance
and services metal pipeline industry. This is because sulfuric acid is widely used in
removing the scale from the surfaces of the pipeline especially iron and steel which is
called as descaling method. However, in this industry, our production decided to not
focusing in local industry but we want to supply sulfuric acid to international companies.
The list of potential companies is stated as in Table 2.13 below:

Table 2.13: List of Potential Companies
No.
Company
name
Address Contact No.
1.
Hennigan
Engineering
Co., Inc
55 Industrial Park Rd, Hingham, MA
02043, United States


Phone: 800-472-8484
Fax: 781-740-8738
[email protected]
2.
Japan
Petroleum
Exploration
Co., Ltd
SAPIA Tower, 1-7-12 Marunouchi,
Chiyoda-ku, Tokyo 100-0005, Japan

Phone: +81-3-6288-7150
Fax: +81-3-6268-7304
www.japex.co.jp

2.3.4. Petrochemical and Oil Refining Industry

In petrochemical and oil refining industry, sulfuric acid is act as a dehydrating
agent especially in the process of nitration, condensation and mostly in dehydration
process while in refining process itself, it is being used for refining, alkylation and
purification of crude oil. Thus, the demand in this industry is also higher as most of the
companies are seek for a higher purity of sulfuric acid in order to ensure the purity of oil
production. The list of both local and international companies is stated in Table 2.14 and
2.15.
Table 2.14: Local Companies in Petrochemical and Oil Refining Industry
39

No.
Company
name
Address Contact No.
1.
Technip
Malaysia
2
nd
Floor, Wisma Technip, 241 Jalan
Tun Razak, 50400 Kuala Lumpur,
Malaysia.


Phone: +60 3 2116 7888
Fax: +60 3 2116 7999
[email protected]
2.
Kemaman
Bitumen
Company Sdn
Bhd
Admin:
A-006-3A, Empire Tower, Empire
Subang, Jalan SS16/1, SS16 47500,
Subang Jaya, Selangor.
Refinery:
Plot PT 7195, Telok Kalong
Industrial Area, 24000 Kemaman,
Terengganu.
Admin:
Phone: 603-5635 0998
Fax: 603-5635 0993
[email protected]
Refinery:
Phone: 09-8601800
Fax: 09-86011806

3.
Ethylene
Malaysia Sdn.
Bhd
Lot 3834, Kawasan Bukit tengah, Km
105, Jalan Kuantan-Kuala
Terengganu, 24300 Kertih,
Kemaman, Terengganu, Malaysia
Phone: 09-8272 040 (Plant)
03-2026 5960 (Kuala Lumpur Office)
Fax: 09-8273 940 (Plant)
03-20513444/3445 (Kuala Lumpur Office)

Table 2.15: International Companies in Petrochemical and Refining Industry
No.
Company
name
Address Contact No.
1.
Singapore
Refining Co.
Pte. Ltd
1 Merlimau Road,
Jurong Island Highway,
Singapore 628260

Phone: 6357 0411
Fax: 6867 7182
www.src.com.sg
2.
Formosa
Petrochemical
Corporation
4F, 201 Tung-Hwa North Road,
Taipei, Taiwan, China
Phone: +886-2-2712-2211
Fax: +886-2-8712-8050
[email protected]

3.
Petroleum
Company of
Trinidad and
Tobago Limited
Manager Procurement, Procurement
Department, Petrotin Poine-a Pierre,
Trinidad, West Indies
Phone: (868) 658-4200/10/20/30
Fax: (868) 658 5394
Direct Line: (868) 658-5136
[email protected]



2.4. Prices of Product
40


Sulfuric acid is one of the worlds largest-volume industrial chemicals based on
IHS Chemicals Annual Report. However, based on the market demand from 2007 to
2010, there is a decrease of demand in from 2008 to 2009. Figure 2.7 is the graph of
price of sulfuric acid during this entire year.

Figure 2.7: Graph of Price od Sulfuric Acid from 2009 to 2010

However, the price of sulfuric acid is increase back from 2010 to 2012 as the
demand of phosphate fertilizer is increase as people is more consumer the healthy
nutrition-rich food crops that require sufficient quantities of phosphate fertilizers. Other
reason to the sudden increase in this year is due to the growth of metal industry which
needed the purity of metal ore by leaching process using sulfuric acid. Thus, sulfuric
acid demand is needed more in this industry and contributes to the higher demand of
41

sulfuric acid. In Figure 2.8 below shows the increase in production of sulfuric acid in
certain country where China demands is higher.


Figure 2.8: Global Production of Sulfuric Acid in 2012

The rise of global demand for sulfuric acid gives an average annual rate of
almost 2.5% during the next five years even though the price is still under pressure but
market appear to be increasingly balanced as a result of some areas of demand stability
(CRUs Sulphuric Acid Market Outlook, 2014). Fertilizer demand for sulfuric acid is
forecast to be growing at about 2.3% during 2011-2016 as several phosphate fertilizer
plants are scheduled to be built in Northern Africa, the Middle East and China. Table
2.16 shows the roughly price of sulfuric acid per tonnes from 2003 up until 2013.



42

Table 2.16: Price of sulfuric acid per tonne from 2003 to 2013.
YEAR PRICE
2003-2007 50 USD/tonne
2008 400 USD/tonne
2009 20-30 USD/tonne
2010 50 USD/tonne
2011 120 USD/tonne
2012 150-180 USD/tonne
2013 200-215 USD/tonne

Based on the Sunsirs Community Data Group, the latest price of sulfuric acid is
being estimate to be increase as the demand is also increase. Although the price changes
with time but it still within it price range which is 321-333 USD/tonne. Figure 2.9 shows
the latest flow of price of sulfuric acid in February 2014.

Figure 2.9: The price of sulfuric acid in February 2014

2.5. Supplier and Import for Feedstock
43

The raw materials consumed in the production of Sulfuric Acid are:
1. Sulfur
2. Water
3. Air

2.5.1. Sulfur

Sulfur is mainly consumed to produce sulfuric acid, one of the most important
chemicals in the industrial fields. Sulfur is also widely used in the fertilizer industry,
rubber industry, as well as for steel production and pharmaceuticals activities.

Figure 2.10: World map of Major Producers of Sulfur, resource from maps of world.
44

The world map of sulfur producers shows a list of countries that produce large
quantities of sulfur. USA leads the world in the production of sulfur in 2011, estimated
9.9 million metric tonnes of sulfur was produce. The second largest producers is China
with annual production of 9.4 million metric tonnes then followed by Russia, Canada
and so on. Canada is the largest exporter of sulfur, followed by Russia and Saudi Arabia.
Sulfur is widely used in biochemical processes. After nitrogen, phosphorus and
potassium, sulfur is one of the major nutrients needed by plants. It has a direct effect in
increasing crop yields.

Figure 2.11: Sulfur Price Development, resource from Sulfur Information Services.

From the Sulfur Price Development figure, it shows the trends of price
development of sulfur which is in decreasing pattern after having slightly sudden
increase in price in early 2011 but then the sulfur price goes down starting from the third
quarter of the year 2011.

45

Figure 2.12: Sulfur Price Forecast, resource from Sulfur Information Service.

Study made by the Sulfur Information Service forecasted that the price value of
sulfur would decrease in 2014 continuing the pattern from the Sulfur Price Development
figure; it would reach the lowest value on 2015. But the study also predicted that the
price of sulfur would then increase again in 2016 and so on.

As for the fixed supplier of sulfur powder, after doing some research in all this
countries, the decision had been made to choose the supplier from India with price given
$170 per tonne and pack in 50kg packaging for transportation purpose.

2.5.2. Water

Production of sulfuric acid by contact process required huge amount of water
supply. Having a reservoir nearby would best fit the water supply demand needed but it
required treatment to ensure the safety and quality in the production process. There for,
having water supply provided from local water provider would be best to ensure water
quality and the water demand.
46


Figure 2.13: The Ranking of Industrial Water Rate in Malaysia, resource from Jabatan
Bekalan Air.

The figure from Jabatan Bekalan Air shows the water price for 1 m
3
for the first
500 m
3
which is different in every state depending on the authority in charge of
providing the water. The sulfuric acid production plant was suggested to be built in
Pahang state. Pengurusan Air Pahang Berhad (PAIP) is the authority in charge to
provide safe water supply for Pahang state.

47

Figure 2.14: Water Tariff, resource from Pengurusan Air Pahang Berhad (PAIP).

From the tariff table, it shows that for the first 227 m
3
of water, every 1 m
3
would
be charge 0.92 MYR, more than that then the water price would drop to 0.84 MYR for
every 1 m
3
after that.

2.5.3. Air
Air is one of the raw materials used in production of sulfuric acid. The estimation
cost of air is 9117949.4 MYR. This estimation is based on the cost of air compressor for
the power plant which cost 70000 USD per pieces. In our production the daily
estimation usage of air is 1887129.6 kg per day, thus 39 pieces of air compressor needed
to supply the air to the plant.
48

Table 2.17: Supplier Details for Raw Materials
NAME ADDRESS CONTACT EXTRA REMARKS

Water
Pengurusan Air
Pahang Berhad
(PAIP)
Bandar Indera
Mahkota, 25200
Kuantan
Pahang Darul Makmur
Email:
[email protected]
y
Tel: +(609)-
5712222
Fax: +(609)
5712221






Sulfur
powder

Iseacon Power
Infrastructures

Shop No. 5, Green
Complex, Nobel
Nagar, Near
Ghanshyam Nagar, Air
Port Road
Ahmedabad - 382340,
Gujarat, India
Tel: +(91)-
8447541834
Contact person: Mr.
Hans Aloria
(Partner)
* Sulfur content: at least
99.5%;
* Ash: Not exceeding
10%;
* Acidity: Not exceeding
.01%;
* Particle Size : 200/250
Mesh
* Packing : Packed in
laminated woven HDPE
Bags with 50Kgs net
material per bag
*$170/ pack
Air Fujian Aivyter
Compressor
Co., Ltd
#505 No.3 Building,
XiaoqiaoXinyuan,
No.587 Liuyi North
Road, Fuzhou, Fujian,
China
Tel: 86-591-
83753886
Fax: 86-591-
83790287
Website:
en.aivyter.com




2.6. Plant capacity

Based on the demand of the sulfuric acid for the next five years, it shows the increment of
the demand of sulfuric acid especially in fertilizer industries and also metal processing industries.
Other than that there are some fertilizer plant which plan to be built in certain countries which
are located at northern Africa, China, India and also Russia. While based on the demand in
49

Malaysia itself, the demand is also higher in fertilizer industries as Malaysia is one of the
countries which economically based on agricultural activities especially in palm oil plantation.

Thus it had been decide that the minimum plant capacity is 230000 metric tonnes per
year and the maximum plant capacity is around 280000 metric tonnes per year. This is because
the demand of sulfuric acid is showing a unstable pattern which goes up and down base on the
production of major industries which used sulfuric acid as raw material. However, this can be
backup with the minor industries that use sulfuric acid as raw material which are, pigment,
detergent, dye, and automobile industries.


2.7. Price estimation

The worldwide price of sulfuric acid shows decreasing in 2009 which is only 30 USD per
tonnes, however it slowly increase from 2010 to present which is now in the range of 321 USD
to 333 USD. This range is considered based on the price of sulfuric acid in Asian and European
countries.

Thus, for this plant production, it had been decided to sell our product with a price within
this range which is 330 USD per tonnes. This price estimation is flexible for consumers from
different countries, as the price is not far from the usual range of price in their respective
countries. The price decided is acceptable and able to be competitive enough to compete with
rival companies beside of getting a higher profit.



50

2.8. Economic Potential

The production of sulfuric acid is being targeted to achieve minimum 230 000
tonnes/year and maximum of 280 000 tonnes/year. The selling price of sulfuric acid for this
production is around 1082.40 MYR. The estimation profit is shown in Table 2.18.

Table 2.18: Estimation profit of Production of Sulfuric Acid
Plant Capacity (tonne/year) Product Profit (MYR)
230 000 1082.40 MYR x 230 000 = 248 952 000
MYR
280 000 1082.40 MYR x 280 000 = 303 072 000
MYR

Thus, in order to achieve this target capacity, the raw material supply must is sufficient
enough to ensure the plant is run smoothly without any lost in profit and following the demand
needed. Table 2.19 shows the estimation cost for raw material to produce this level of
production. The amount of raw material is also shown roughly in calculation 2.8.1.


2.8.1. For 230 000 tonnes/year Production

Amount of sulfur needed:



For 98% of purity of sulfuric acid in hour production:

51

Sulfur Trioxide, SO3 required (100%):

Sulfur Oxide, SO2 required (99.8%):

Assuming 100% of sulfur burned:
Amount of sulfur needed:

Sulfur Required per Year:

Sulfur require in Metric tons:

Price of Sulfur = 557.60 MYR/tonnes
= 65303.02 kg/year x 557.60 MYR
= 36 412 963.95 MYR

52

Amount of Dry Air needed:
O
2
required = 266.738 kmol/hr x 1.5
=400.107 kmol/hr
Using 40% excess of air:
O
2
required = 400.107 kmol/hr x 1.4
= 560.1498 kmol/hr

Dry air in = (560.1498 x 100) 21
= 2667.38 kmol/hr

At 30C, assuming 65% Relative Humidity;
Humidity = 0.0165 kg water/kg dry air
Water entering with dry air = 2667.38 kmol/hr x 29 kg/kmol x 0.0165
= 1276.34 kg/hr 18 kmole/kg
= 70.91kmol/hr

Total Weight of air entering = (2667.38 x 29) + (70.91 x 18)
= 78630.4 kg/hr

Total Weight of air entering/yr = 78630.4 kg/hr x 24hr x 360 day
= 679,366,656 kg/yr


53

Total Weight of air entering in tonnes/year = 679366656 kg/yr 1000 kg/tonnes
= 679366.66 tonnes/year

Capacity of 1 unit of air compressor = 33 m
3
/min x 60 min x 24 hr
= 47520 m
3
/day
= 40824.75 kg/day
= 14696910 kg/year
Unit required for production = 679,366,656 14696910 kg/year
= 46.2 approximately 47 units
1 unit of air compressor = 229600 MYR
47 units of air compressor = 107 912 00 MYR

Amount of Water needed:
= 266.2042 kmol/hr x 76 kg/kmol
= 20231.52 kg/hr
In Metric Tons = 20231.52 kg/hr 1000 kg/tonnes
= 20.23152 tonnes/hr
= 174,800.33 tonnes/yr

Amount of water in 230,000 tonnes sulfuric acid = 230,000 174,800.33
= 55199.67 tonnes/yr
= 55199.67 m
3
/yr

54

Price of water required = 55199.67 m
3
227 m
3
= 54972.67 m
3

=227m
3
x 0.92$
= 208.84 MYR

= 54972.67m
3
x 0.84$
= 46177.04 MYR

Total Cost of water needed = 208.84 MYR + 46177.04 MYR
= 46385.88 MYR


2.8.2. For 280 000 tonnes/year Production:

Amount of sulfur needed:



For 98% of purity of sulfuric acid in hour production:

55

Sulfur Trioxide, SO
3
required (100%):

Sulfur Oxide, SO
2
required (99.8%):

Assuming 100% of sulfur burned:
Amount of sulfur needed:

Sulfur Required per Year:

Sulfur require in Metric tons:

Price of Sulfur = 557.60 MYR/tonnes
= 79398.922 tonnes/year x 557.60 MYR
= 44 272 838.91 MYR




56

Amount of Dry Air needed:
O
2
required = 324.724 kmol/hr x 1.5
=487.086 kmol/hr
Using 40% excess of air:
O
2
required = 487.086 kmol/hr x 1.4
= 681.920 kmol/hr

Dry air in = (681.920 x 100) 21
= 3247.24 kmol/hr


At 30C, assuming 65% Relative Humidity;
Humidity = 0.0165 kg water/kg dry air
Water entering with dry air = 3247.24 kmol/hr x 29 kg/kmol x 0.0165
= 1553.80 kg/hr 18 kmole/kg
= 86.32 kmol/hr

Total Weight of air entering = (3247.24 x 29) + (86.32 x 18)
= 95723.72 kg/hr

Total Weight of air entering/yr = 95723.72 kg/hr x 24hr x 360 day
= 827,052,940.8 kg/yr

57

Total Weight of air entering in tonnes/year = 827052940.8 kg/yr 1000 kg/tonnes
= 827052.94 tonnes/year

Capacity of 1 unit of air compressor = 33 m
3
/min x 60 min x 24 hr
= 47520 m
3
/day
= 40824.75 kg/day
= 14696910 kg/year
Unit required for production = 827052940.8 14696910 kg/year
= 56.3 approximately 57 units
1 unit of air compressor = 229600 MYR
57 units of air compressor = 130 872 00 MYR


Amount of Water needed:
= 324.724 kmol/hr x 76 kg/kmol
= 24679.024 kg/hr
In Metric Tons = 24679.024 kg/hr 1000 kg/tonnes
= 24.679 tonnes/hr
= 213226.77 tonnes/yr

Amount of water in 230000 tonnes sulfuric acid = 280,000 213226.77
= 66773.23 tonnes/yr
= 66773.23 m
3
/yr
58

Price of water required = 66773.23 m
3
227 m
3
= 66546.23 m
3

=227m
3
x 0.92$
= 208.84 MYR
= 66546.23 m
3
x 0.84$
= 55898.83 MYR

Total Cost of water needed = 208.84 MYR + 55898.83 MYR
= 56107.67 MYR

Table 2.19: Estimation cost of raw material for maximum and minimum production of sulfuric
acid
Plant Capacity
(tonnes/yr)
Item Sulfur Dry Air Water
230 000 Quantity Used
(kg/yr)
65303020.8 679,366,656 (47
units)
55199670
Price per
Tonne (MYR)
557.60 229600 -
Total Price
(MYR)
36 412 963.95 10791200 46385.88
280 000 Quantity Used
(kg/yr)
7939821.6 827052940.8
(57 units)
66773.23
Price per Unit
(MYR)
557.60 229600 -

Total Price
(MYR)
44 272 838.91 13087200 56107.67




59

Thus, the economic potential of this plant for both minimum and maximum production is shown
in Table 2.20.


Table 2.20: Calculation of profit per year for minimum and maximum production
Plant Production (tonnes/yr) Minimum: 230 000 Maximum: 280 000
Total Estimation Selling
Price Product (MYR)
248 952 000 303 072 000
Cost of Raw Material
(MYR)
47 250 549.83 57 416 146.58
Profit Per Year (MYR) 201 701 450.20 245 655 853.40

Thus, as a conclusion, the production of sulfuric acid has two estimation profit based on the
minimum and maximum of sulfur price.
For 230 000 tonnes/year : RM 201 701 450.20
For 280 000 tonnes/year : RM 245 655 853.40









Profit per Year = Selling Price Product Cost Raw Material