Comparison of capacity expansion strategies for chemical production plants

Radatz, Heiko; Kühne, K.; Bramsiepe, Christian; Schembecker, Gerhard

doi:10.1016/j.cherd.2018.12.018

Cited by 8 publications

(3 citation statements)

References 20 publications

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“…This is because larger plants benefit from economies of scale, efficiency improvements, and better purchasing power, which lower the cost per unit produced. 36,37 Additionally, due to the large contributions of material costs (specifically the price of PBAT) to the operating costs of CPBAT-K and CPBAT-S, the dependency of MSPs on the raw material costs and price of PBAT alone was examined by incorporating a 50% decrease/increase and recording the changes in the MSPs. The findings indicate that the minimum selling prices are highly influenced by raw material costs, particularly PBAT, which accounts for approximately 87% of the raw material costs.…”

Section: Sensitivity Analysismentioning

confidence: 99%

Technoeconomic Analysis for Biodegradable and Recyclable Paper Coated with Synthetic Ionic PBAT for Packaging Application

Aayanifard,

Saffron,

Hamdani

et al. 2024

ACS Sustainable Chem. Eng.

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This study presents a technoeconomic analysis (TEA) for a novel ionic polybutylene adipate-co-terephthalate (PBAT), CPBAT, as a paper coating material, showcasing excellent water and oil resistance. This TEA determined total capital investment, operating costs, and minimum selling prices for a production capacity of 1,000 kg of CPBAT per day. The minimum selling prices of CPBAT coated on Kraft paper (CPBAT-K) and CPABT coated on starch-coated Kraft paper (CPBAT-S) are estimated to be $1.327/m 2 and $1.864/m 2 , respectively. Additionally, the results of a sensitivity analysis show that the production of CPBAT-K and CPBAT-S is highly sensitive to the production capacity, raw material costs, energy efficiency of the coating process, reaction energy, and reaction yield. Recovery of the ionization solvent only marginally increases the selling prices of CPBAT-K and CPBAT-S, and hence, it is highly favorable. By increasing production capacity, lowering raw material costs, using energy-efficient coating machines, and partially recovering energy from reactions, the prices of CPBAT-K and CPBAT-S can be reduced to $0.588/m 2 and $0.914/m 2 , respectively. Given that commercial polyethylene-coated paper prices range from $0.94/m 2 to $1.850/m 2 , CPBAT-based coated papers with comparable mechanical and barrier properties along with biodegradability and recyclability are positioned as highly competitive and sustainable alternatives in the market.

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Section: Sensitivity Analysismentioning

confidence: 99%

Technoeconomic Analysis for Biodegradable and Recyclable Paper Coated with Synthetic Ionic PBAT for Packaging Application

Aayanifard,

Saffron,

Hamdani

et al. 2024

ACS Sustainable Chem. Eng.

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“…[13] insisted that smaller entry size was better for survival and longevity in new markets. However, designing smaller plants and using step-wise capacity expansions might lead to a decrease in investment risk and an increase in adaptability [14].…”

Section: Literature Reviewmentioning

confidence: 99%

Speed and Sustainability When Entering New Market

Kim

Lee

2021

Sustainability

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When constructing a factory to enter new markets, the optimal size to respond to demand is determined by the construction time. Hyundai Motor Company (Hyundai), on the other hand, standardizes the size of its factories to speed up the entry and response to demand. The Hyundai’s entry mode, called SPEED, is modeled as a strategy. The strategy is evaluated of excellence with capacity expansion rules formalized, key parameters identified, and mathematical programming. The SPEED strategy is suited for market followers who want to enter a midscale or mature market in terms of business excellence and more sustainable throughout the factory’s life cycle on the side of sustainability. Shorter construction times, as a result of the SPEED strategy, can help to prevent environmental damage while also standardization can increase job prospects for local workers.

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“…modules from a comprehensive database according to the specific need [38][39][40]. In addition, the concept of modularization increases the capacity and product flexibility [41][42][43][44].…”

Section: Transformable Productionmentioning

confidence: 99%

Transformable Decentral Production for Local Economies with Minimized Carbon Footprint

et al. 2020

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Due to high energy-intensive processes and a dependence on carbon-based materials, the process industry plays a major role in climate change. Therefore, the substitution of fossil resources by biobased resources is indispensable. This leads to challenges arising from accompanying changes of the type, amount and location of resources. At the same time, transformable production systems are currently in the focus of research addressing the required flexibility. These systems which consist of modular production and logistics units offer the possibility to adapt flexibly in volatile conditions within dynamic supply chains. Hence, this work compiles elements for environmental sustainability, which minimize the carbon footprint in the process industry: transformable production systems, the utilization of bio-based resources, carbon dioxide and renewable energy as well as the application of these elements in decentral production networks. Finally, possible use cases are determined based on the combination of these elements through a multi-criteria analysis.

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Comparison of capacity expansion strategies for chemical production plants

Cited by 8 publications

References 20 publications

Technoeconomic Analysis for Biodegradable and Recyclable Paper Coated with Synthetic Ionic PBAT for Packaging Application

Technoeconomic Analysis for Biodegradable and Recyclable Paper Coated with Synthetic Ionic PBAT for Packaging Application

Speed and Sustainability When Entering New Market

Transformable Decentral Production for Local Economies with Minimized Carbon Footprint

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