Production Cost Report | Agriculture, Farming and Commodity

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Tall Oil Production Cost Analysis By Pine, Spruce, and Birch Tree

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

This report entails the detailed cost evaluation of tall oil production by pine, birch or spruce tree. Tall oil is an organic oil variety produced through kraft-pulping processes from the wood of pine, spruce, or birch trees. The process is initiated by processing the wood (obtained from pine, spruce, or birch tree) through a kraft pulping process. It leads to the formation of a resinous substance that reacts with the chemicals used for treating the wood pulp, i.e., black liquor (including lignin, hemicellulose, etc.), and produces calcium soap as an intermediate. It is then separated from the pulping mixture, washed, and treated with a strong acid (such as sulfuric acid) to produce tall oil at the end.

Top Producers of Tall Oil

  • Kraton Corporation
  • Metsa
  • Torgoviy Dom Lesokhimik
  • Citec Group Oy Ab
  • Eastman

Feedstocks for Tall Oil

Tall oil is produced from birch, pine, or spruce trees that are used as the major feedstock. The procurement of tall oil is influenced by several prominent factors. Some of the factors include the availability of its primary feedstock (including pine and spruce trees, etc.) in specific regions (including North America and Scandinavia), harvesting period and cost (for the woods from spruce, pine, or birch trees), stability in its supply chain, stability in its market prices, and logistics directly govern its procurement process. Moreover, other factors, including the demand for tall oil in the chemical industry (for detergents, adhesives, sealants, coating, and dyestuff materials), transportation and trading activities, as well as financial and governmental policies, have a significant impact on its procurement across the globe.

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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