Production Cost Report | Agriculture, Farming and Commodity

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Sodium Lignosulfonate Production Cost Breakup by Sulfite Pulping Process

Details: Germany - based plant Q2 2024  | From $ USD

This report entails the detailed cost evaluation of sodium lignosulfonate production by sulfite pulping process. The preparation of sodium lignosulfonate is a complex sequential process that is initiated by pulping of wood. Initially, softwoods from pine or spruce are collected and processed into wood chips. The wood chips obtained are treated with a mixture of water and sulfite (may contain sodium, magnesium, or calcium sulfite).

It is then processed through a sulfite pulping process, where the lignin in the wood dissolves in the mixture of water and sulfite, and the resulting mixture is known as spent liquor containing lignosulfonates. The reaction is further processed, and the spent liquor is then treated with sodium hydroxide. It results in the formation of sodium lignosulfonate in the mixture (spent liquor), which is then filtered from the mixture, purified and dried to give sodium lignosulfonate as the end product.

Top Producers of Sodium Lignosulfonate

  • Borregaard LignoTech
  • Sappi
  • Burgo Group
  • Nippon Paper Industries
  • Tembec

Feedstocks for Sodium Lignosulfonate

Sodium lignosulfonate is an organic chemical compound that is manufactured by using sodium hydroxide and lignosulfonate as its major feedstock. The procurement of sodium lignosulfonate is dependent on different vital factors, including the harvesting cost of softwood varieties (including pine or spruce, raw materials for lignin, which is further used for lignosulfonate production), along with the availability of other raw materials (including sodium or magnesium sulfite, and sodium chloride, for lignosulfonate and sodium hydroxide production), logistics and trading activities, etc. Additionally, other factors such as the demand for sodium lignosulfonate in agrochemical and construction industries, production cost, variations in market prices, stability in the supply chain, transportation, and economic and governmental policies largely impact its procurement in the global market.

The project economic analysis provided in the report discusses a Germany-based plant:

  • Manufacturing Process
    • Process Flow
    • Material Flow
    • Material Balance
  • Raw Material and Product's Specifications
    • Raw Material Consumption
    • Product and Co-Product Generation
    • Capital Investment
  • Land and Site Cost
    • Offsites/Civil Works
    • Equipment Cost
    • Auxiliary Equipment Cost
    • Contingency
    • Engineering and Consulting Charges
    • Working Capital
  • Variable Cost
    • Raw Material
    • Utilities
  • Fixed Cost
    • Labor Requirement & Wages
    • Overhead Expenses
    • Maintenance Charges
  • Financing Costs
    • Interest on Working Capital
    • Interest on Loans
  • Depreciation Charges
  • General Sales and Admin Costs
  • Production Cost Summary
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Report Content

Key Process Information

Evaluation of significant technical parameters along with process descriptions such as:

  • Consumption of Raw Material
  • Product Creation
  • Block Flow Diagram
  • Description of the Manufacturing Facility

Utilities Consumption

Evaluation of utilities consumed during the entire process based on:

  • Consumption per unit of product generated
  • Utility cost split and share of each utility in the total cost

Process Flow Diagram

Representation of various operations involved including:

  • Step-wise process
  • Utility consumption in each operation

Capital Cost Analysis

In-depth analysis of costs involved in setting up a new manufacturing unit, including:

  • Cost of Building a Process Unit
  • Cost of Setting Up the Infrastructure
  • Working Capital
  • Commissioning & Start-Up of the Plant

Implementation Schedule

Time frame of the project design, which includes:

  • Plant Start-Up
  • Plant Construction
  • Engineering Fundamentals
  • Raw Material Procurement

Construction Cost Details

Detailed analysis of costs involved in the operation of various functional units in the process unit and infrastructure.

Operating Cost Analysis

Evaluation of costs associated with the production of the final product, namely:

  • Procurement of Raw Materials
  • Consumption of Utilities
  • Fixed Costs
  • Depreciation

Economic Analysis

Analysis of the way in which process economics are impacted by plant capacity.

  • Construction Cost
  • Working Capital
  • Fixed and Variable Operating Costs
  • Corporate Overhead
  • Depreciation

Customized Analyses

Detailed cost estimates of any industrial plant depending on your requirements, including plant capacity and location as per the need.

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