I/EC A
COSTS
W O R K B O O K
F E A T U R E
by Walter L. Hardy, Foster D. Snell, Inc.
Phenol-Formaldehyde Resin Manufacture $160,000 for equipment ,
+
=
$100,000 for working capital
A HE phenolic resins, one of the oldest of the synthetics, are still showing a healthy growth. In spite of the phenomenal development and production of other plastics, the phenol-formaldehyde resins have many physical and chemical properties as yet unduplicated by other materials. T h e data on phenolic resin sales for the last 4 years are given in Table I, from the U. S. Tariff Commission. By 1960, the sales of phenolics should reach 600 million pounds and approximately double every 10 years thereafter (based on a prognostication of 200 million population by 1975). An analysis of Table I shows that approximately 4 4 % of the 1955 production of phenolics was consumed in molding powder, 4 4 % as an adhesive or bonding agent in laminating, abrasives, insulation, plywood, and others, 6 % in protective coatings, and 6 % in miscellaneous uses including cast sheets, rods, tubes, etc. T h e current productive capacity (530 million pounds) in the United States approximates the 1955 sales. To meet the increasing demand, new facilities will have to be installed. Some of these new facilities will be installed by users (captive plants such as in the electronics and insulation industries), others by current or newprime producers. New foreign installations are planned and still others will be considered as the future requirements demand increased capacity. A phenol-formaldehyde resin plant, of a size suitable for captive use or for foreign installation, can be installed for approximately $160,-
6.65 million pounds molding powder
+ 1.65 million pounds cast products
Table 1.
Phenol c Resin Sales
(Thousands of pounds) Use
1955
1954
195S
1952
Molding materials Adhesives and bonding Laminating resin Abrasives Friction materials Insulation Plywood All others Protective coatings Miscellaneous
200,000
172,000
204,000
158,000
49,000 16,000 22,000 52,000 36,000 27,000 25,000 29,000 456,000
64,000 11,000 15,000 37,000 28,000 13,000 22,000 27,000 389,000
71,000 12,000 16,000 21,000 34,000 18,000 26,000 28,000 430,000
69,000
000, exclusive of buildings and site (Table I I I ) . Such a plant will produce 20,000 pounds of resin per 8hour day. This production is divided to produce 6650 pounds of cast phenolic products and 26,700 pounds of molding powder containing 5 0 % wood flour filler. T h e history and chemistry of phenol-formaldehyde resins is well
Figure 1.
40,000 24,000 61,000 352,000
documented in the literature, to which the reader is referred for such background. In production, the batch process has generally been employed. A continuous process has been developed and is in use with certain economic advantages. Batch production is divided into "onestage," wherein the entire formaldehyde charge is added to the initial
Flowsheet VOL. 48, NO. 9
·
SEPTEMBER 1956
45 A
IEC
COSTS
·
A Workbook Feature
Table II. Material Balance A.
tali
Phenol Formaldehyde (37%) Flour (wood) Hexa Misc."
Cost of Materials Per lb. Per lb. raw material product $0.17 $0.1395 0.07 0.064 0.029 0.0001 0.235 0.0018 $0.2054
Lb./Lb. Product
6666
Raw Material Phenol Formaldehyde (37%) Caustic (100%) Lactic acid
Cast Resin
Molding Powder 0.408 0.456 0.500 0.029 0.016
0.17 0.07 0.015 0.242 0.15
$0.0695 0.032 0.0075 0.0070 0.0024
Maintenance cost (including maintenance labor), 5%/year of total erected cost Depreciation, 10% total erected plant cost Interest, 6% on total plant investment Insurance, taxes, etc. at 4 % of total plant investment Total estimated production cost per day
$
31.75 63.50 64.80
43.20 $ 203.25 $1091.65
A s s u m e a p r o p o r t i o n i n g of t h e t o t a l e s t i m a t e d d a i l y p r o d u c t i o n cost b e t w e e n t h e cast resin a n d m o l d i n g p o w d e r . T h e t o t a l cost of p r o d u c i n g these p r o d u c t s t h e n b e c o m e s :
$0.1184
' Includes cost of lubricant, dye, and catalyst (H:SO
