13 May 1996 00:00 [Source: ACN]
PHILIPPINE Phosphate Fertiliser Corp (Philphos) has issued a letter of intent to Monsanto to build its 1000 tonne/day (330 000 tonne/year) sulphuric acid plant at Isabel in Leyte province, Philippines.
The sulphuric acid, together with a US$1m gypsum project, constitute the company's plan to integrate its operations and reduce its Peso30bn (US$1.15bn) debt. High gypsum and NPK prices forecast for the next few years and cost savings in manufacturing its sulphuric acid requirements are expected to reduce this debt (ACN 12 Feb, p5).
The engineering, procurement and construction contract for the sulphuric acid plant is being finalised and will likely be signed by the end of the month, a Philphos official told ACN. Monsanto will also provide technology to convert liquid sulphur to sulphuric acid.
The US$23m plant will be completed 18-20 months after the contract is signed. The expected completion date is 1998. It will be the company's second sulphuric acid plant and will enable the company to be self-sufficient in the product.
The gypsum plant is expected to come onstream in June. Startup was originally scheduled for April but a delay in the arrival of dryer equipment has held back the project. A small portion of the gypsum will be used captively as a filler for NPK fertiliser and the balance sold to cement producers.
Ammonia is imported from Kaltim in Indonesia and potassium chloride and potassium sulphate from Russia and Canada.
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