Chapter I

Pulp and Paper Market

1.1 Domestic Market

(1) Trend of Domestic Market

The country’s recent strong economic performance is seen in domestic market,

coming from the demand for packaging processed foods, appliances and other

consumer goods, as well as consumption of tissue, publishing and printing

paper. This strong demand is driven by improved standards of living, higher

disposable income, rise in education, tourism, and increased manufacturing

activities in the Philippines. Furthermore, the shift towards environmentally-

friendly policies and lifestyles drive demand further, thereby providing promising

opportunities to invest in the industry.

The pulp and paper industry contributes about P30 billion per year in domestic

sales value to the economy, or saves the Philippines $700 million per year in

foreign exchange from imported paper and board. As of 2012, the local paper

industry directly employs about 6,000 personnel, mostly skilled workers and

technical professionals, and contribute value to the economy by sustaining the

livelihood opportunities of about 1.2 million workers in the wastepaper

collection, sorting, and hauling sub-sectors. Current socio-economic conditions

in the country are profitable for businesses in the pulp and paper industry. While

paper and paperboard consumption in the Philippines is still low at 19 kg per

capita, total annual demand is growing at 2.5% per year, with packaging and

tissue grades experiencing high growth rates.

Table 1.1.1 Volume of Paper and Paperboard Production

Since there is sufficient domestic market paper production in the Philippines,

the country’s pulp requirements are enough to support the establishment of an

economic-sized pulp mill. The industry presently operates without the presence

of a local pulp mill, which is necessary for the production of specialty and high-

value paper products. Domestic and foreign investments on this significant

component will make the paper and pulp supply chain more productive and

cost-competitive.

Finally, the Philippines has suitable areas for fast-growing and sustainably-

managed commercial forests. For instance, in the eastern half of Mindanao,

pulp production can be established based on privately-owned tree farms,

industrial tree plantations, and community-based forestry. The forest products

sector has also identified various species excellent for reforestation, such as

Acacia mangium, Eucalyptus spp hybrids, Gmelina arborea, and Albizzia

falcata. Virgin kraft and chemi-mechanical pulps (used in high-grade and

international standards-compliant paper and paperboard products) can be

locally manufactured from these wood species.

 Table 1.1.2 Production and Trade within Philippines’ Paper Industry, 2005-2014

Aside from recycling paper for its fiber requirements, the Philippines has

unutilized volumes of agricultural waste and abaca (Manila hemp) that farmers

in Bicol, the Visayas, and Mindanao can supply to the paper industry. Other

fibers from agricultural waste (such as rice straw, banana and sugarcane

bagasse), as well as plants like kenaf and bamboo, can be supplemental

sources of pulp in the industry.

(2) Demand

The paper industry in the Philippines comprises 39 local recycling paper mills, 6

abaca pulp mills and 1 integrated paper mill situated in the province of Surigao

that has a tree plantation and supplies its own requirement for pulp to produce

paper, or a total of 46 industry players.

(3) Supply

The recycling paper mills depend steadily on continuous supply of waste papers

to support their day-to-day operations. The local mills are committed to provide

a constant supply of high quality and reasonably priced paper products serving

the needs of allied and related industries.

Table 1.1.3 Annual Paper Mill Capacity

 Chapter II

Raw Materials

2.1 Supply Sources and Major Issues

Waste paper is to be used as a feedstock for the paper production process

again because it is readily available and currently underutilised.

2.2 Sawmill Wood Wastes and Chips

2.3 Material Procurement Planning Framework

 Chapter III

Mill Site

3.1 Location

The paper mill is going to be established in a 5-hectare lot located near the road

of Circumferential Rd. 6, Brgy. Wawa, Taguig, Metro Manila. The mill is located

near Taguig Pumping Station beside Taguig River, C-6 road near H3 Concrete

Builders Incorporated in Brgy. Wawa having a Latitude 14 o 31’07.72” N &

Longitude 121o04’52.04” E. It is about 15 kms from the city of Manila and 29

kms from the waste paper supplier.

3.2 Site selection method (review IN DETAILED)

Considering a good location has a big factor in many aspects of how the

business operates and how it becomes successful, such as its accessibility, the

competition day to-day operating expenses. These are the considerations why

the location was chosen are as follows:

Marketing Area

The paper mill will produce bulk quantities for primary markets such as

supermarkets, school facilities and offices that frequently needs the product.

Raw Materials

Waste papers are mainly coming from Novaliches since it has the biggest waste

of paper in entire country, location will affect to supply of materials. Location is

accessible and it is near the road, so the delivery would be easier. The paper

mill project will use 100% waste papers.

Supply of Water

The surface water from (state kung saan mismo sa Taguig kukunin ang tubig)

will be use for the process and for cooling purposes of the planned mill. A large

part of the consumed water is used only as cooling water, which is not polluted.

This water is discharged from the process as clean water, but with a

temperature rise. A fraction of this heated, clean water will be used as process

water for the pulp mill, while the remaining fraction will be discharged directly as

a clean effluent.

Supply of Potable Water

Drilling of new ground water well is economically favorable compared to using

municipal water. Some of the drinking water in Taguig is taken from the ground

water with enough capacity and good water quality. Drinking water/potable

water will be needed from the very first beginning of the construction of the mill.
Transportation

Since the plant location is near in the highway, the delivery would be speedy

and convenient from raw materials up to shipping to customers.

Community and labor attitudes

Availability of men power of requisite skill is also a factor. The residents in the

barangay are very hospitable. Workers are hardworking, skilled labor and very

sociable.

Community infrastructure and amenities

The community is accessible and is near the ports. It is having enough power

lines and supply of electricity. The site location is also near the community

service facilities.

Capital

It chosen because the barangay offers low price with great location. There is

also a huge space where expansion of plant would be convenient and not too

cost.

Climatic Conditions: Geologic & Climatic Conditions

RAINFALL GRAPH // WEATHER BY MONTH

Months with the largest precipitation are August, July, September with 1083 mm

precipitation. Most precipitation occurs in August with an average precipitation

419 mm. The annual amount of precipitation in Taguig is 1922 mm. The

average annual temperature is 31℃ in Taguig. The warmest month of the year

is April, with an average temperature: 34℃. Usually, January is the coldest

month in Taguig, with average temperature 30℃. The difference between the

hottest month: April and the coldest month: January is: 4℃. The difference

between the highest precipitation (August) and the lowest precipitation

(February) is 399mm.

TEMPERATURE GRAPH // WEATHER AVERAGES

The hot season lasts for 1.5 months, from April 6 to May 22, with an average

daily high temperature above 92°F. The hottest day of the year is April 30, with

an average high of 94°F and low of 79°F. The cool season lasts for 2.6 months,

from November 23 to February 13, with an average daily high temperature

below 87°F. The coldest day of the year is January 21, with an average low of

73°F and high of 86°F.

Average humidity over the year

The perceived humidity level in Taguig, as measured by the percentage of time

in which the humidity comfort level is muggy, oppressive, or miserable, does not

vary significantly over the course of the year, staying within 4% of 96%

throughout.
3.3 Project Location Map (not sure)
 Paper Mill
Plant Site

Pls. input kung saan kinuha

 Chapter IV

Environmental Aspects edit pls

4.1 General

4.2 Environmental Legislation in Philippines

4.3 Applicable Environmental Standards for the Project

4.4 Proposed Technical Measures for Environmental Improvement

4.5 Estimated Pollution Loads

4.6 Environmental Impacts

 Chapter V

Pulp Mill Design

5.1 Products and Specifications

As the proposed products are assumed to be sold to the general market at the present,

product specifications are established, the mill produced A4 paper measures 210 × 297

millimetres or 8.27 × 11.69 inches, and As per the paper thickness, 50-80 GSM will be

produced that gives appropriate level of brightness in addition to ensures proper print.

5.2 Production Capacity

5.3 Selection and Description of the Production Process

5.4 Outline of Mill Facilities and Equipment

5.5 Unit Consumption

5.6 Mill Layout

 Chapter VI

Mill Construction Plan

6.1 Mill Construction Plan

6.2 Construction schedule

6.3 Project Cost Estimate

6.4 Company Organization and Workforce

6.5 Production Schedule

 Chapter VII

Financial Analysis

7.1 Production and Sales Plan

7.2 Operating Cost