Total Capital Investment Summary

Total Capital Investment Summary
The methods used to determine the total capital investment for the project from the total
equipment purchase costs are shown in Table 1. The bare module factors for all fabricated
equipment, process machinery, storage tanks, and spare plant parts were summarized in Table
from Demmy. The total purchase cost for all equipment was calculated to be $5,405,695.00 and
the total bare module cost was $20,725,782.80.
The factors used to estimate the required costs for installation, instrumentation and
controls, piping, electrical services and other factors for plant startup were also shown in Table 1.
These calculations formed the basis for calculating the total capital investment required for the
project.
Table 1. Correlations between total capital investment and required fees for the proposed plant
Component Of Total Capital Investment
Installation 40% of Total Bare Module Cost
Instrumentation and Controls 18% of Total Bare Module Cost
Piping 45% of Total Bare Module Cost
Electrical 25% of Total Bare Module Cost
Service Facilities & Yard Improvements 70% of Total Bare Module Cost
Land 6% of Total Bare Module Cost
Engineering and Supervision 18% of Direct Costs
Construction Expense & Contractor's Fee 18% of Direct Costs
Contingency 10% of Fixed Capital Investment
Fixed Capital Investment Direct Costs + Indirect Costs
Working Capital 15% of Total Capital Investment
Total Capital Investment Fixed Capital Investment + Working Capital
A breakdown of the required investment costs, beginning with total bare module costs
and ending with the required total capital investment for the project, was shown in Table 2. The
project required an initial investment of $112,011,341.71 to cover the minimum required costs to
build the styrene production plant.
Table 2. Calculation of total capital investment required from estimated equipment bare module
costs
Total Capital Investment Summary
Direct Costs:
Purchased Equipment (Bare Module) $ 20,725,782.80
Installation $ 8,290,313.12
Instrumentation and Controls $ 3,730,640.90
Piping $ 9,326,602.26
Electrical $ 5,181,445.70
Service Facilities & Yard Improvements $ 14,508,047.96
Land $ 1,243,546.97
Total Direct Costs: $ 63,006,379.71
Indirect Costs:
Engineering and Supervision $ 11,341,148.35
Construction Expense & Contractor's Fee $ 11,341,148.35
Contingency $ 9,520,964.05
Total Indirect Costs: $ 32,203,260.74
Fixed Capital Investment: $ 95,209,640.45

Working Capital: $ 16,801,701.26
Total Capital Investment: $ 112,011,341.71
Total Product Cost
Table 3. Estimated raw material pricing and yearly requirements
Raw Materials Estimated Cost ($/MT) Yearly Requirement (MT) Total Annual Cost
Ethylbenzene 1,102.00 1,030,690.52 $ 1,135,820,953.04
Iron Oxide Catalyst 1,157.00 26,311.08 $ 30,441,919.56
Total $ 1,166,262,872.60
The fresh ethylbenzene feedstock for the process is available on Zhonglan Industry
Co.,Ltd. in Shandong, China for a cost of $1000/ton including the shipping fee. The catalyst
needed for the process, iron oxide (Fe3O4), can be procured in bulk for $1,157/MT.
Based on the reactor design, it was found that the isothermal packed bed reactor would
require 3559.4-kilogram catalyst for the entire process. In accordance to recommendations from
other projects, the catalyst cannot be regenerated and has a 6-month lifespan. The reactor will
require two batches of catalyst each year, amounting to a yearly requirement of 26,311.08 MT
catalyst.
Table 4. Utility cost estimates per hour and per operating year.
Utilities Estimated Cost ($/MT) Yearly Requirement (MT) Total Annual Cost
High Pressure Steam 0.32 4,837,603.90 $ 1,548,033.25
Total $ 1,548,033.25
Referring to Table 4, the process generates 4, 837,603.90 MT yearly of high pressure

steam needed in the second mixer of this process. The high pressure steam is sold at a price of
$0.32/MT, generating a yearly revenue of $1,5448,033.25.
Table 5. Labor operating expenses required per year to carry out the duties at the plant
Operations (Labor-Related) Estimated Cost ($/operator-hr) Total Annual Cost

Direct Wages and Benefits 10 $ 221,760.00
Direct Salaries and Benefits 15% of Direct Wages & Benefits $ 33,264.00
Total $ 255,024.00
To achieve an efficient plant operation, the plant will need three daily operating shifts,
each lasting approximately 8 hours. The employment of three operators per shift is highly
recommended.
The factors used to estimate the required total product costs, total manufacturing costs
and total general expenses were also in Table 6. These calculations formed the basis for
calculating the total product costs required for the project.
Table 6. Correlations between total product costs and required fees for the proposed plant
Component of Total Product Cost
Direct Supervisory & Clerical Labor 18% of Operating Labor
Maintenance and Repairs 6% of Fixed Capital Investment
Operating Supplies 15% of Cost for Maintenance and Repairs
Laboratory Charges 15% of Operating Labor
Depreciation 10% of Fixed Capital Investment
Local Taxes 3% of Fixed Capital Investment
Insurance 0.7% of Fixed Capital Investment
Plant Overhead Costs 65% of Cost for Operating Labor, Supervision & Maintenance
Administrative Costs 15% of Cost for Operating Labor, Supervision & Maintenance
Distribution and Selling Costs 11% of Total Product Cost
Research and Development Costs 5% of Total Product Costs
A breakdown of the total product costs, starting with total manufacturing costs and
ending with the annual gross-earning cost for the project, was shown in Table 7. The
combination of the total manufacturing costs and total general expenses is $ 1,200,411,326.70.
Total Product Cost Summary

Manufacturing Costs:
Direct Production Costs:
Raw Materials $ 1,166,262,872.60
Operating Labor $ 255,024.00
Direct Supervisory & Clerical Labor $ 45,904.32
Utilities $ 1,548,033.25
Maintenance and Repairs $ 5,712,578.43
Operating Supplies $ 856,886.76
Laboratory Charges $ 38,253.60
Fixed Charges:
Depreciation $ 9,520,964.05
Local Taxes $ 2,856,289.21
Insurance $ 666,467.48
Plant Overhead Costs: $ 3,908,779.39

Total Manufacturing Costs: $ 1,191,672,053.09
General Expenses:
Administrative Costs $ 902,026.01
Distribution and Selling Costs $ 5,388,107.72
Research and Development Costs $ 2,449,139.87
Total General Expenses: $ 8,739,273.61
Total Product Cost: $ 1,200,411,326.70

Gross-earnings Cost: $ 1,088,399,984.99

Total Capital Investment Summary

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Total Capital Investment Summary

Total Direct Costs: $ 63,006,379.71

Total Indirect Costs: $ 32,203,260.74

Fixed Capital Investment: $ 95,209,640.45

Ethylbenzene 1,102.00 1,030,690.52 $ 1,135,820,953.04

Iron Oxide Catalyst 1,157.00 26,311.08 $ 30,441,919.56

Referring to Table 4, the process generates 4, 837,603.90 MT yearly of high pressure

Operations (Labor-Related) Estimated Cost ($/operator-hr) Total Annual Cost

Total Product Cost Summary

Plant Overhead Costs: $ 3,908,779.39

Total General Expenses: $ 8,739,273.61

Total Product Cost: $ 1,200,411,326.70

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