Commercialization of the technology of catalytic transmutation of inorganic stone particles to rapid liquified phthalate-free plasticizer

Project Objective:

To commercialize the technology of catalytic transmutation of inorganic stone particles to rapid liquefied Phthalate-free bio-degradable plasticizer (mineral Plasticizer)

To develop a manufacturing plant for the production of 18,000 ton annual capacity of bio-degradable mineral plasticizer from the natural stone being the major feedstock

Technology Benchmarking:

 Existing technology produces traditional phthalate-based (a by-product from petroleum process) that belongs to a family of chemical substance have been in use for about 50 years. The compound phthalate esters contribute to significantly deteriorating health changes in human.

 Restraint resources of petroleum products and high cost of raw material.

 The excellent technical specification and technical properties of the innovation of the project while predominantly using bio-degradable and non-phthalate stone powder as the major feedstock will susceptive to benchmarking against the traditional plasticizers.

Market size & Demand:

 World consumption of plasticizers in 2008 was estimated at 5.6 million ton with a global market value of USD11 billion

 The majority of this, about 90%, is used for polyvinyl chloride (PVC), a polymer used in diverse applications such as coatings, plumbing, construction materials and plastic bottles

 This market is likely to experience continued growth as the market for polyvinyl chloride has grown by approximate 4-5% annually.

 Plasticizers are not only additives such as pigments or fillers, they are major components that determine the physical properties of polymer products, and commonly used compound for the plastic making industry.

Market & Financial Risks:

 The project anticipates the market demand is high attributing to the scarcity of petroleum being the major raw materials to the traditional suppliers, the project’s stone particle based phthalate-free plasticizer is set to accomplish in the operation.

 Relatively low risk due to highly diversified application and usage of the innovation.

 The ample supply of stone particles in the country poses minimal risk that may unlikely affect the operating performance and result, therefore the project expects significant gains on the contribution margin.

 The slowdown in growth of the global economies and financial crisis in the recent years, coupled with the infamous fact of an energy crisis since 2008 somehow has stimulated the creation of a niche requirement for an alternative cost effective supply of product without compromising on the quality.

Product Competitiveness:

 Due to its low costing for its stone particle materials being the major raw material feedstock, there are significant margin contribution for competitive yet drastically affordable pricing mechanism at different market channels

 According to ICIS source, for the market condition in July 2010, the traded prices for various phthalate-based plasticizers such as DINP and DOP ranged from RM6,618 to RM7,378 (€1,525 to €1,700) per ton due to market tightness

 The product is eco-friendly friendly and a perfect cost efficient replacement for traditional petroleum-based plasticizer, and in general at a discount of 55% to the current traded market prices to EU region

Potential Revenue Generated:

 Production volume: 18,000 ton per year
 Projected revenue: RM54,000,000.00
 Selling price: RM3,000 per ton
 Profit: 35.32%