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  1. 1. 7 CHAPTER 1 THE PROJECT AND ITS BACKGROUND I. Introduction Activated carbon, also called activated charcoal, activated coal, or carbo activatus, is a form of carbon processed to be filled with small, low-volume pores that increase the surface area available for adsorption, purification and filtration of substances. It is generally used in water filters, medicines that selectively remove toxins, and chemical purification processes as a cleaning agent. Various manufacturers, businesses, government agencies, scientists and chemists, and even simple people use this carbon. Activated carbon is produced by the oxidation of charcoal made from wood, coconut shell, sawdust, or fruit kernels. For the purpose of this study, the company will focus on manufacturing activated carbon made from coconut shells which is seen as dominant in Quezon Province, the company’s prospected plant site. Coconut shell-based activated carbons are the least dusty. Predominantly microporous, they are well-suited for organic chemical adsorption thus, it has the highest hardness compared to other types of activated carbons. In the early years, the use of Activated Carbon was already dominant. Adsorption or filtration on porous carbons was described as early as 1550 B.C. in an ancient Egyptian papyrus and later by Hippocrates and Pliny the Elder, mainly for medicinal purposes. In the 18th century, carbons made from blood, wood and animals were used for the purification of liquids but they were only available as powders.
  2. 2. 8 At the beginning of the 19th century the decolourisation power of bone char was detected and used in the sugar industry in England which allowed the use of percolation technology, where the liquid to be treated was continuously passed through a column. Bone char, however was only used for sugar purification. At the beginning of the 20th century the first processes were developed to produce activated carbons with defined properties on an industrial scale. However, the steam activation (V. Ostreijko, 1900 and 1901) and chemical activation (Bayer, 1915) processes could only produce powder activated carbon. During then, powder activated carbon was only known for the production of gas masks used in the First World War. Today, activated carbon is already used in various areas such as in air treatment, water treatment, manufacture of foods and beverages, pharmaceutics, and many more. By this change they are following the modern tendency towards recycling and waste minimisation, thereby reducing the use of the world's resources. The demand in activated carbon is increasing through time as to more and more sectors discover the wonders and benefits of active carbon. Recently, a new sector, which is the cosmetic industry ventured to it by introducing activated carbon on facial wash and toothbrush products. Hence, as water becomes increasingly needed to satisfy life, the purification of water rapidly grows as well as the purification of foods. Apparently, the supplies do not match the demand. More and more businesses be it large or not use it but there are only few manufacturers of activated carbon. According to Philippine Activated Carbon Manufacturers Association Inc., the world demand for activated carbon is expected to increase more than 10 percent per year through 2016 to 1.9 million metric tons. It is assumed reasonably that this growth rate is
  3. 3. 9 suitable to Philippine setting as well because of the increasing number of industries and increasing number of companies in Table 1.1 Demand of Activated Carbon Source: Philippine Activated Carbon Manufacturers Association Inc. those industries who will be using activated carbon. Thus, activated carbon industries will be one of the vastest expanding industries in the upcoming years making it easier for those prospective AC manufacturers to expand. With the large pool of demand for activated carbon, there are however, only few manufacturers who venture in making carbons. For example, in Quezon province where there are large number of coconut shells and woods (main raw material in making AC), no one manufactures activated carbon. As a result, small businesses pay more cost on shipping and handling for they still have to order in Manila, Cebu, Central Luzon and even abroad just to have a supply which is a real burden. Apparently, in the whole region, there exists only one manufacturer of activated carbon to support great demands, and the supply of this manufacturer alone is not enough to cater all demands in the region leading to circumstances such that, end user industries have to depend partially on imports and partially on lowering their consumption.
  4. 4. 10 II. Objectives of the Study The main objective of this study is to know the feasibility of manufacturing Activated Carbon in Region 4A-Calabarzon. In line with this, this study aims: a. To know the profitability and marketability of manufacturing Activated Carbon in Calabarzon which is composed of five provinces, namely: Cavite, Laguna, Batangas, Rizal and Quezon. b. To identify the possible problems and opportunities in venturing in this kind of industry; c. To determine the competitiveness of the company from its competitors, whether direct or indirect competitors and; d. To find out the economic practicability of operating this business in Region 4ACalabarzon. III. The Company A. Company Profile active The company is directed to be established as one of the top activated carbon manufacturers in the country. The company shall be called “Carbon Plus Corporation” for practical reasons such that, this corporation intensifies simple carbon into activated carbon(C+). Carbon Plus Corporation is a stock corporation and will have its own plant near Tayabas-Pagbilao Road, Quezon and main office at Brgy. Isabang Lucena City, Quezon. The plant location will perfectly suit the nature of the corporation, which is to make coconut shell-based carbons and since Quezon is one of the top
  5. 5. 11 coconut producing region, raw materials are readily available and accessible at the same time. Carbon Plus Corporation saw the felt need on purification these days as our world becomes more polluted. Everything must be sanitized first before it gets to the final users of the product. Before coming up with the final good, other manufacturers and producers sanitize first their product offerings making sanitation processes in demand. And Carbon Plus Corporation aims to help these manufacturers, small or big, meet their product standards at the same time lower their production cost. Carbon Plus Corporation also saw the great difference in demand and supply. There is a very great demand on activated carbon as it caters to almost all industries, but such low and lacking supply. There are only a number of manufacturers of activated carbon in the Philippines and some others are just distributors. Businesses and other industries that need activated carbon in their operation generally, commit a large transportation cost for they have to order in far places. The Carbon Plus Corporation found it odd especially for those within and near Quezon, where there is an abundant amount of charcoal. In making a plant in Quezon, there is a certainty that we can offer the product in a much lower price. Other businesses on the other hand, having no choice as to buying big bulks of activated carbon, suffer great cost discharges such as storage cost which is a real burden. If we manage to offer them products in small quantities, they can
  6. 6. 12 effectively control their order cost and can efficiently manage their production processes. Carbon Plus Corporation aims to help not only big corporations but also those little entrepreneurs who can only afford to buy in small quantity. The company aims to grant businesses with much effective and efficient production generating customer satisfaction. B. Logo of the company Fig. 1.1 Company Logo The color of the words “CARBON PLUS CORPORATION” is inspired by the color of activated carbon itself, which varies within the shades of black and gray, while the six circles at the side represent the atomic number of the element carbon, six. Activated carbon works with the idea “black attracts black”, the circles started from a dark toned one, which represents a substance with impurities. With the aid of the insertion of Carbon Plus product, the shade of each circle lightens, until it reached a clear one, representing the process of adsorption of the residues, dirt and other impurities of the substance, which specifically, is the main function of activated carbon.
  7. 7. 13 C. Vision Carbon Plus Corporation is an integrated manufacturing entity providing sufficient supply of high quality activated carbon and relevant services to respond to the growing demands of the public while minimizing the cost of the product to make it more affordable to the users. Equipped with dedication to be on the top of the industry to further enhance the quality of purifications of our generation and generations to come, providing more job opportunities, a better industry and for the satisfaction of the customers. D. Mission Statement a. Enthusiastically ensure the success of our company by effectively satisfying the needs of our customer, shareholders and employees. b. Consistently manufacture reliable and high- quality products and related services. c. Interdependently accelerate competence of our company through intensive development, quick response to modernization and cooperation with the society. d. Responsibly make a difference through helping build and support sustainable communities. e. Consciously regard the responsibilities in the environment, government and overall welfare while maximizing long-term return to shareowners.
  8. 8. 14 E. Opportunities and Advantages Being the first manufacturer of Activated carbon here in Quezon, provides the company the assurance of favourability of consumers as they would prefer availing products that can minimize their cost of transportation and handling. Aside from that, Carbon Plus Corporation will be the first corporation to manufacture powderized AC in CALABARZON which is to be patronized by oil refineries, one of the most popular businesses in Quezon. In addition, Quezon is known for abundance in coconut supply which gives the company a great advantage in supply, as it is sufficient and readily available in the region. Compared to other raw materials used, Coconut is the most renewable at the quickest time possible, making it possible to have enough supply to ensure continuous production. Furthermore, activated carbon from coconut shells is more reliable compared to other sources. According to Grimwood, “Shell carbons are generally dense, very hard and highly retentive. They have a very fine pore structure and their rate of adsorption is generally faster than that of coal carbons.” IV. The Product Carbon is one of the most abundant elements in the world. With this, Carbon Plus Corporation maximized the potentials of this element by turning it into something very useful. Activated Carbon (AC) is a crystalline substance which has the ability to adsorb or purify substances. It undergo through the activation process whether thermal or
  9. 9. 15 chemical. Hydrocarbons are removed from the carbon material thus producing network of tunnels and pores which gives the ability of adsorption. The adsorption process of Activated Carbon goes through three basic steps. First, the substance is adsorb on the outside surface of the carbon. Then it goes into the carbon adsorption pore with the highest adsorption energy. Lastly, the substance is then adsorbed into the inner platelets of the carbon. The two mechanisms wherein the chemicals are adsorbed onto the Fig 1.2 Activated carbon in water filtration activated carbon are either it hates the water or it attracts into the activated carbon. Common Uses of Activated Carbon Air Treatment Water treatment Food and Beverage Odor Control Drinking Water Sugar Decolour VOC Adsorption waste water Fruit Juice Solvent Recovery Process Water Bottled Water Flue Gas Remediation MSG Air Condition Swimming Pool Edible Oil Inorganic Abate Aquariums Auto Emission Cigarette Filter Table 1.2 Common Uses of Activated Carbon Source:
  10. 10. 16 Other Uses of Activated Carbon States Purpose Applications Examples Gas Phase Recovery Gasoline Vapor Gasoline Fuel Recovery recovery,ELCD Solvent Recovery MEK, Cyclohexanone, CS2, Furon, Trichloroethane Odor Removal Room Order Removal Tobacco, CO, Room filters, Toilet Odor, Pet Odor Refrigerator Automobile Cabin air filters Tobacco Cigarette Filter Hospital Anesthetic gas removal Ozone Removal Harmful Gas Deodorizer Copiers, Laser Printers Closed Environment Dioxin removal,Space Ships, Underground CO2 Gas Nitrogen PSA Nitrogen Gas Separation Other PSA Radio Active Gas Factory Waste Water Cleaning Waste Water Drinking Water Trihalomethane, Chlorine, Separation Liquid Water Phase Treatment
  11. 11. 17 Treatment VOCs, Lead, Arsenate removal Decolorization Industrial Use Sugar refinement, of Indusrial Pharmaceutical use, Chemicals Whisky distilment Medical Medical and Nursing Applications Electronics Kidney machine, Nursing supplies, Respirators Eletrorodes Double Layer Capacitors, Hardisks Mineral Gold Recovery Gold Recovery Recovery Table 1.3 Summarized Uses of Activated Carbon Source: V. Business Offerings Carbon Plus Corp. offers the market with Activated Carbon made from coconut shells. It provides consumers two types of Activated Carbon. Below is the list of activated carbons offered by the company and its corresponding description and uses. Type Description Uses Powdered This type of activated These are used as water carbon is usually used for treatment, decolorization of liquid phase adsorption. industrial chemicals, They are put into liquids to medicinal applications,
  12. 12. 18 be purified and then electronics, mineral removed in the process of recovery and oil sedimentation and refinement. filtration. Granular These are irregularly These are used for shaped Activated Carbons. deodorization, air These are preferably used purification, water for absorption of gases and treatment and separation of vapors because their rate of components of flow diffusion is faster. system. Table 1.4 Business Offerings