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Caustic Soda (Sodium Hydroxide) Production in Nigeria (Using Salt Brine As Raw Material); The Feasibility Report.

Caustic Soda (Sodium Hydroxide) Production in Nigeria (Using Salt Brine As Raw Material); The Feasibility Report.

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Caustic Soda is also known as Sodium Hydroxide (NaOH). It is an important industrial chemical product produced in both liquid & solid form. It is deliquescent, absorbing water vapour and carbon dioxide from the air.

Caustic soda or sodium hydroxide, is a white crystalline solid substance which usage cuts across virtually all the sectors of the economy chemical, textile, pharmaceutical, oil and gas.

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Description

Caustic Soda is also known as Sodium Hydroxide (NaOH). It is an important industrial chemical product produced in both liquid & solid form. It is deliquescent, absorbing water vapour and carbon dioxide from the air.

Caustic soda or sodium hydroxide, is a white crystalline solid substance which usage cuts across virtually all the sectors of the economy chemical, textile, pharmaceutical, oil and gas.

Since it is a strong alkaline which can easily dissolve with water, it is used as a cleaning agent for many household and industrial purposes. It can easily absorb gases like carbon dioxide and sulphur dioxide; hence it can be used in the treatment of heavy metals, extraction of ores, in refining oil and in many other processes and uses.

The physical form of sodium hydroxide can be in the form of pellets, wafers, solids or even liquid solutions.Purity ranges from 32% Na2O to 99% Na2O and it is highly corrosive to skin.

Caustic soda is used in the aluminum industry, pulp & paper. They are used as water treatment and water purification, as cleaning agent, or a wide range of uses in chemical industry like the starch production and for dyeing clothes, and what have you.

The global caustic soda market is expected to reach USD 46.31 billion by 2024, according to a new report by Grand View Research, Inc. Escalating demand across various industries such as textile, pulp & paper, organic chemicals, etc. is expected to strengthen the market growth. Rising demand for alumina in automobile industry especially in Asia Pacific is considered to stimulate the market growth.

Fluctuating prices due to high energy consumption and uneven production rates is likely to limit the market growth. Chlorine production is also expected to influence the caustic soda market as it is co-produced with chlorine.

Organic chemicals emerged as the leading application segment and accounted for 16.3% of total market volume in 2015. Owing to incessant demand for man-made fibers, the textile industry is expected to emerge as the fastest growing application segment at an estimated CAGR of 4.4% from 2016 to 2024. Textiles are expected to emerge as the leading application surpassing organic chemicals over the forecast period.

In Nigeria, the Raw Materials Research and Development Council(RMRDC) disclosed that in the last five years, the country (Nigeria) imported caustic soda valued at more than thirteen billion (N 13,000,000,000) for use by manufacturing firms, Oil and Gas sectors of the economy.

The project had been envisaged based on availability of Brine (salt) in Nigeria.Brine springs and lake spreads are possible sources of crude salt in Nigeria. The concentration of salt in these springs has been estimated at 15 to 30 parts per thousand. The saline springs occur within the narrow belt which extends in a North-North East – South- South West direction from Gombe to Afikpo, along the plains of the Benue and Cross River drainage systems. The brines issue from clays, shale, silty and arkosic sandstone, and conglomerates of upper cretaceous age.

Nigeria has an estimated reserve of about one point five billion (1,500,000,000) tons of salt brine.Caustic soda is produced together with chlorine gas from the electrolysis of salt brine.

The project had been envisaged based on availability of Brine (salt) in the country. Salt brine is used in the production of edible salt.

This report highlights the financial viability or otherwise of establishing a caustic soda (Sodium Hydroxide) plant in Nigeria and producing 98- 99 % grade of caustic soda (Sodium Hydroxide) flakes and chlorine gas as bye-product.

Chlorine gas is well known for its use in sterilizing drinking water and in particular swimming pool water. However, most chlorine is used in the chemical industry in the manufacture of other products.

The proposed plant would comprise of caustic soda plant, forklift, transformer, generator, project vehicles, weigh bridge, chlorine and diesel tanks.

The production capacity of the proposed plant is five (5) tons per day and would operate at eighty (80%) of the installed capacity working three (3) shifts of eight (8) hours each in 300 days per annum producing two hundred (200) tons of caustic soda flakes and one thousand six hundred (1,600)tons of chlorine gas bi-monthly and requiring two hundred and ninety (290) tons of salt, one thousand, six hundred kilogram (1,600 kg) of hydrochloric acid, nine thousand, four hundred kilogram (9,400 kg) of barium chloride, seven hundred and forty kilogram (740 kg) of sodium sulfide, two thousand, eight hundred and eighty cubic meter (2,880 m/³day) of water and one hundred and eighty kilogram (180 kg) of sodium carbonate bi-monthly.

Table of Contents

EXECUTIVE SUMMARY

1.0 Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of product
2.2 Product Packaging and delivery
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

3. Production Plan

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule

4.0 Organizational and Management Plan

4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.2 Management Support Units
4.4 Details of salary schedule

5. Financial Plan

5.1 Financial Assumption
5.2 Start – Up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Analysis
5.7 Cash Flow Analysis
5.8 Viability Analysis

6.0 Business Risk and mitigation factor

6.1 Business Risks
6.2 SWOT Analysis

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Report Details

Report Type: Feasibility Report
Formats of Delivery: MS WORD
No. of Pages: 42 pages ( Text Part) ; 6 Pages (Financial Part)
Product Code:FORA/2016/0505/CAUSTICSODAPRODUCTION/011
Release Date: 16/01/2016; Updated Every 3- Months
Language: English
Delivery time: 24– 48hours