Background The Designed Production Capacity

Preliminary Plant Design of Chloroform from Acetone and Bleaching Powder Capacity 40,000 TonnesYear Chapter I Introduction CHAPTER I INTRODUCTION

1.1 Background

The growth of the world population continues to rise and leads to increases in the need for particular goods. This affects development and establishment of new industries in the world, including in Indonesia. Currently, Indonesia rellies on imports to comply the demand for chloroform. Therefore, by establishing a chloroform plant, it expected that the import can be reduced. Chloroform is one of the chemicals whose demand is continuously increasing in Indonesia and therefore establishment of chloroform manufacturers will have a prospect so as to meet the need of chloroform both at home and overseas. The establishment of chloroform manufacturers in Indonesia will reduce imports and diversify products with high economic values which add to state revenues and provide employment. The chemical formula of chloroform is CHCl 3 . At normal pressure and temperature, it is a clear liquid with a typical smell. Chloroform is used as an anesthetic and a non-polar solvent in laboratories or by industries. [Amonette et al., 2009]

1.2 The Designed Production Capacity

The maximum amount of production done within a particular unit of time is called production capacity. A manufacturer should have an optimal production capacity as the quantity and the type of the product manufactured should have a maximum profit with minimal costs. Some factors which affect the determination of the designed capacity of chloroform manufacturers are: Preliminary Plant Design of Chloroform from Acetone and Bleaching Powder Capacity 40,000 TonnesYear Chapter I Introduction a. The demand of Chloroform in Indonesia To meet the need for chloroform, Indonesia is still importing from other countries. The need for chloroform in Indonesia continues to rise as can be seen from 2006 to 2010 in the Tabel 1.1. Table 1.1 Imports of chloroform in Indonesia from 2006 to 2010 Years Chloroform import ton 2006 378.733 2007 317.820 2008 599.266 2009 593.659 2010 490.019 Badan Pusat Statistik, 2011 Figure 1.1 Demand of chloroform in Indonesia The increases in the imports of chloroform are consistent with the equation of a straight line: y = 0.0247x 2 – 49.349 x 100 200 300 400 500 600 700 2005 2006 2007 2008 2009 2010 2011 Ch lo ro for m i m p o rt Years Import in Indonesia from 2006-2010 Preliminary Plant Design of Chloroform from Acetone and Bleaching Powder Capacity 40,000 TonnesYear Chapter I Introduction Using the equation, it can be estimated that chloroform imports in 2017 will reach 949.8 tonyear The manufacturer capacity is then determined to reach 40,000 tonyear. Thus, besides being able to meet the need of chloroform at home, Indonesia will also be able to make exports abroad. b. The demand of Chloroform Overseas The increased need for chloroform abroad makes establishment of chloroform manufacturers has a good future prospect, such an increased need is resulted from the functions of chloroform as an anesthetic and as a nonpolar solvent. Table 1.2 The demand of Chloroform overseas at 2006 until 2010 Years Ton 2006 331.791 2007 338.847 2008 345.909 2009 352.979 2010 360.055 c. Availability of Raw Materials Acetone and bleaching powder is the main raw materials of chloroform manufacture. Acetone can be produced by carrying out this process of propanol dehydrogenation. However, in relation to the chloroform manufacturer establishment, acetone as the main raw material which is obtained from PT. Smartlab Indonesia costs IDR 145,000 while production of bleaching powder through the interaction between bleaching powder gas and calcium hydroxide which is obtained from PT Asahimas Chemical costs IDR 15,000. Later, chloroform is sold at a price of at least IDR 790,000. In so doing, the chloroform manufacturer establishment will generate huge profits. Preliminary Plant Design of Chloroform from Acetone and Bleaching Powder Capacity 40,000 TonnesYear Chapter I Introduction d. Minimum Designed Capacity Chloroform manufacturers which have been established overseas have a minimum capacity of 18,000 tonnesyear and a maximum capacity of 90,000 tonnesyear. Table 1.3 Data on the capacity of the manufacturers established abroad Chloroform Plant Capacity tonyears 1.Dow Chemical Company, Freeport, Texas 2.Dow Chemical Company, Plaquemine, Louisiana 3.Hanlin Group Inc., Moundsville, West Virginia 4.Vulcan Materials Company, Geismar, Louisiana 5.Vulcan Materials Company, Wichita, Kansas 60.750 90.000 18.000 40.500 72.000 Based on several factors above and the projection of the calculation related to increases in chloroform imports per annum, the designed production capacity in 2017 should amount to 40,000 tonyear with the assumptions that it will: 1. Be able to export chloroform as the world demand for chloroform keeps on increasing 2. Boost state revenues through exports to other countries

1.3 Site Selection for the Manufacturer

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