Adipic acid

Adipic acid is a white crystalline powder. This organic compound is the most important synthetic dicarboxylic acid annually produced, mainly used as a precursor for the production of nylon. Based on its physico-chemical properties, adipic acid is water soluble and has a low potential for volatility and bioaccumulation. It is expected to partition predominantly into the aquatic compartment and not to adsorb on soil or sediment particles. Adipic acid can be prepared from acetylene and acetic acid in the presence of tert-butyl peroxide.

Uses of Adipic Acid

·         It is used also as a monomer or intermediate for the synthesis of polyurethanes, mono- or polyesters for plasticizers, lubricant additives, coatings, foams or shoe soles applications.

·         As a monomer in the production of nylon6, 6.

·         Tanning agent for pre-treatment of leather.

·         pH regulator in several processes such as the production of detergents and cleaning agents.

·         Pelleting agent in disinfection pills for drinking water

·         Additive in flue gas desulphurization.

·         Additive in the coatings of dish washing machine tablets.

·         Additive in laboratory chemicals.

·         Adipic acid is also used in the chemical industry to produce other polymers, coatings, plasticizers and detergents.

Chemistry of Adipic acid

·         Name: Adipic acid

·         Chemical name (IUPAC): Hexanedioic acid

·         Molecular formula: C6H10O4

·         Synonyms: 1,6-Hexanedioic acid; Hexane-1,6-dioic acid Molecular weight 146.14 g/mol

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Properties of Adipic Acid

Physical state Solid at room temperature

·         It is white in color.

·         Odour is Slight.

·         Boiling point is 337.5°C at atmospheric pressure.

·         Melting point range is 150.9°C at atmospheric pressure.

·         It is Non flammable

·         Readily soluble in water.

Market Structure

Global adipic acid (ADA) demand is estimated at 2.3 million metric tons in 2012 and is growing at 3–5% per year. Nylon 66 accounts for about 85% of the total adipic acid demand. The other applications are polyurethanes (5%), adipic esters (4%), and others (6%). Major global producers of ADA include Invista, Ascend, Honeywell, BASF, Radici, China Shenma, and PetroChina. The average price has been $1,600/mt in 2012. High-purity fiber-grade adipic acid is used to make nylon 66, while lower purity adipic acid is used primarily to produce polyurethanes.

Worldwide, about 30% of adipic acid is used in carpets, 13% in manufacturing parts, 12% in apparel, 11% in plasticisers and lubricants, 7% in transportation bodies/parts, 2% in non-nylon polyamides, 2% in packaging and 1% each for pulp/paper, transportation seats/furnishings, lubricants and food.

Production of adipic acid is closely correlated with the world’s nylon production. Worldwide, the largest single use of adipic acid is in carpet manufacturing, accounting for 30% of the market. Global demand for adipic acid is expected to increase over the next few decades, particularly in Asia, driven primarily by the growth in demand for synthetic fibers (i.e., nylon 6, 6), particularly for use in carpet manufacturing. Nylon 6,6 accounts for approximately 90% of adipic acid demand; demand for nylon is a strong indicator of future adipic acid demand.

Global capacity in 2010 was approximately 3 million metric tons, concentrated in the United States (30%), the European Union (29%), and China (22%).

Recently, researchers at Nagoya University developed a new method, which substitutes 30% aqueous hydrogen peroxide for nitric acid, producing adipic acid in over 90% yield and eliminating N2O as a by-product. However, commercial application of this process will depend on finding cheaper ways to produce hydrogen peroxide.

The production technology of adipic acid for long has been controlled in the hands of multinationals such as DuPont. In 2004, total installed capacity for adipic acid in the world was 2.74-mtpa. DuPont alone accounted for a capacity of 1.1-mtpa, accounting for 40% of the world total. Solutia (USA) and Rhodia (France) were other dominant producers. The three, together, accounted for close to 70% of world total. Producers in other regions of the world included Asahi Chemical (Japan), Bayer and BASF (both in Germany).

In 2006, global capacity stood at 2.99-mtpa. Nearly 1.02-mtpa was in W. Europe, followed closely by the US (1.0-mtpa) and Asia-Pacific (excluding Japan) (0.493-mtpa). Japan, Canada and Latin America had capacities of 172,000-tpa, 170,000-tpa and 80,000-tpa, respectively.

In 2007, global capacity for adipic acid was marginally up over the 2007 levels, at about 3.08-mtpa, spread over few plants. The U.S. remained a major producer with three companies, in four locations, accounting for approximately 40% of world production. Other producing countries include Brazil, Canada, China, France, Germany, Italy, Japan, Korea, Singapore, Ukraine, and UK. Most of these countries have only one adipic acid plant. Operating rates have risen from lows of 84% in 2001 to about 90% in 2006. The US was the largest net exporter of adipic acid in 2006, with 59,500-tons, and Asia-Pacific was the largest net importer, with 52,000-tons.

How Niir Project Consultancy Services (NPCS) can be helpful:-

NPCS can provide project consultancy services to any budding entrepreneur, who wants to get knowledge on Manufacturing of Adipic acid and its market growth. Consultancy can provide the complete report covering topics like Plant Economics, Production Schedule, Land & Building, Site Development Expenses, and Working Capital Requirement etc.

NPCS Project Consultancy Services helps in establishing business prospective in Manufacturing of Adipic acid. Detailed project report can be modified as per requirement of cost and capacity of the project. Our consultancy has a state-of-the-art experience in preparing projects report on different subjects as per need.

Detailed project report contains:

·         Introduction

·         Properties

·         BIS (Bureau of Indian Standard) Specifications & Requirements

·         Uses & Applications

·         Present Indian Market Position

·         Expected Future Demand

·         Export & Import Statistics Data

·         Names and Addresses of Existing Units (Present Manufactures)

·         List of Plant & Machineries

·         Miscellaneous Items and Accessories

·         Instruments, Laboratory Equipments and Accessories

·         Electrification, Electric Load and Water

·         Maintenance, Suppliers/Manufacturers of Plant and Machineries

·         Process of Manufacture

·         Flow Sheet Diagram

·         List of Raw Materials

·         Availability of Raw Materials

·         Requirement of Staff & Labour

·         Personnel Management

·         Skilled & Unskilled Labour

·         Requirement of Land Area

·         Built up Area

·         Plant Layout.

Along with financial details as under:

•        Assumptions for Profitability workings

•        Plant Economics

•        Production Schedule

•        Land & Building

Factory Land & Building

Site Development Expenses

•        Plant & Machinery

Indigenous Machineries

Other Machineries (Miscellaneous, Laboratory etc.)

•        Other Fixed Assets

Furniture & Fixtures

Pre-operative and Preliminary Expenses

Technical Knowhow

Provision of Contingencies

•        Working Capital Requirement Per Month

Raw Material

Packing Material

Lab & ETP Chemical Cost

Consumable Store

•        Overheads Required Per Month And Per Annum

Utilities & Overheads (Power, Water and Fuel Expenses etc.)

Royalty and Other Charges

Selling and Distribution Expenses

•        Salary and Wages

•        Turnover Per Annum

•        Share Capital

Equity Capital

Preference Share Capital

•        Annexure 1          ::        Cost of Project and Means of Finance

•        Annexure 2          ::        Profitability and Net Cash Accruals

Revenue/Income/Realization

Expenses/Cost of Products/Services/Items

Gross Profit

Financial Charges    

Total Cost of Sales

Net Profit After Taxes

Net Cash Accruals

•        Annexure 3                    ::        Assessment of Working Capital requirements

Current Assets

Gross Working. Capital

Current Liabilities

Net Working Capital

Working Note for Calculation of Work-in-process

•        Annexure 4                    ::        Sources and Disposition of Funds

•        Annexure 5                    ::        Projected Balance Sheets

ROI (Average of Fixed Assets)

RONW (Average of Share Capital)

ROI (Average of Total Assets)

•        Annexure 6                    ::        Profitability ratios

D.S.C.R

Earnings Per Share (EPS)

Debt Equity Ratio

•        Annexure 7                    ::        Break-Even Analysis

Variable Cost & Expenses

Semi-Var./Semi-Fixed Exp.

Profit Volume Ratio (PVR)

Fixed Expenses / Cost 

B.E.P

•        Annexure 8 to 11 ::        Sensitivity Analysis-Price/Volume

Resultant N.P.B.T

Resultant D.S.C.R

Resultant PV Ratio

Resultant DER

Resultant ROI

Resultant BEP

•        Annexure 12        ::        Shareholding Pattern and Stake Status

Equity Capital

Preference Share Capital

•        Annexure 13        ::        Quantitative Details-Output/Sales/Stocks

Determined Capacity P.A of Products/Services

Achievable Efficiency/Yield % of Products/Services/Items 

Net Usable Load/Capacity of Products/Services/Items   

Expected Sales/ Revenue/ Income of Products/ Services/ Items   

•        Annexure 14        ::        Product wise domestic Sales Realization

•        Annexure 15        ::        Total Raw Material Cost

•        Annexure 16        ::        Raw Material Cost per unit

•        Annexure 17        ::        Total Lab & ETP Chemical Cost

•        Annexure 18        ::        Consumables, Store etc.,

•        Annexure 19        ::        Packing Material Cost

•        Annexure 20        ::        Packing Material Cost Per Unit

•        Annexure 21        ::        Employees Expenses

•        Annexure 22        ::        Fuel Expenses

•        Annexure 23        ::        Power/Electricity Expenses

•        Annexure 24        ::        Royalty & Other Charges

•        Annexure 25        ::        Repairs & Maintenance Exp.

•        Annexure 26        ::        Other Mfg. Expenses

•        Annexure 27        ::        Administration Expenses

•        Annexure 28        ::        Selling Expenses

•        Annexure 29        ::        Depreciation Charges – as per Books (Total)

•        Annexure 30        ::        Depreciation Charges – as per Books (P & M)

•        Annexure 31        ::        Depreciation Charges - As per IT Act WDV (Total)

•        Annexure 32        ::        Depreciation Charges - As per IT Act WDV (P & M)

•        Annexure 33        ::        Interest and Repayment - Term Loans

•        Annexure 34        ::        Tax on Profits

•        Annexure 35        ::        Projected Pay-Back Period And IRR

In order to get consultancy services for Manufacturing of Adipic acid and to have a view in market growth of the product, you may contact Niir project Consultancy Services that offers every bit of information regarding subject.