CONTRIBUTION TO

PHILIPPINE ECONOMY
 PRODUCTION OF ANILINE FROM CATALYTIC HYDROGENATION OF NITROBENZENE .

CONTRIBUTION TO PHILIPPINE ECONOMY

Aniline has a wide variety of application. Aniline is primarily used in MDI foams for the automotive
and construction industries. Many chemicals can be made from Aniline, including: Isocyanaates for the
urethane industry, Antioxidants, activators, accelerators, and other chemicals for the rubber industry,
indigo, acetoacetanilide, and other dyes and pigments for a variety of applications, diphenylamine for the
rubber, petroleum, plastics, agricultural, explosives, and chemical industries, various fungicides and
herbicides for the agricultural industry and pharmaceutical, organic chemical, and other products.
Since aniline as never been produced in the Philippines, the different industries utilizing aniline as
their raw material need to import mainly in China and Western Europe. Presently, the largest consumers of
aniline are the pharmaceutical and consumer goods industries, accounting for 35% and 30% of the total
aniline usage, respectively.

Figure 1. Percent Usage of Aniline in the Philippines

The following table summarizes the projected demand and supply of aniline in the Philippines for
the next 10 years starting from 2018.
 PRODUCTION OF ANILINE FROM CATALYTIC HYDROGENATION OF NITROBENZENE .

Table 1. Projected Demand and Supply of Aniline using Statistical Parabolic Curve Method

Net Weight in MT
Year
Demand Supply
2018 192749.86 89904.78
2019 204294.82 99661.63
2020 216212.62 110113.16
2021 228503.27 121259.36
2022 241166.77 133100.24
2023 254203.11 145635.79
2024 267612.29 158866.01
2025 281394.32 172790.91
2026 295549.20 187410.49
2027 310076.93 202724.74
2028 324977.50 218733.66
2029 340250.91 235437.26

Projected Demand and Supply (Aniline)

400000
350000
300000
Weight, MT

250000
200000
Supply
150000
100000 Demand

50000
0
2016 2018 2020 2022 2024 2026 2028 2030
Year

Figure 2. Graphical Representation of Projected Demand and Supply of Aniline

The table below presents the unsatisfied demand for aniline in the Philippines for the following
years.
 PRODUCTION OF ANILINE FROM CATALYTIC HYDROGENATION OF NITROBENZENE .

Table 2. Unsatisfied Demand of Aniline for the next 12 years

Net Weight in MT
Year
Demand Supply Unsatisfied Demand
2018 192749.86 89904.78 102845.1
2019 204294.82 99661.63 104633.2
2020 216212.62 110113.16 106099.5
2021 228503.27 121259.36 107243.9
2022 241166.77 133100.24 108066.5
2023 254203.11 145635.79 108567.3
2024 267612.29 158866.01 108746.3
2025 281394.32 172790.91 108603.4
2026 295549.20 187410.49 108138.7
2027 310076.93 202724.74 107352.2
2028 324977.50 218733.66 106243.8
2029 340250.91 235437.26 104813.7

Based on the preceding tables, it can be predicted that the demand for aniline in the Philippines
follows an increasing trend reaching its maximum in the year 2026. This is an indication of a need for
manufacturing plant in the Philippines.
The impact of Nitroline Philippines Corporation on the Philippine economy is significant in many
ways. The production of aniline touches almost most of the industrial sectors of economy in the Philippines-
pharmaceuticals, consumer goods, rubbers, and so on. Being a raw material for other industries requiring
aniline, NPC will be able to support other industries by providing sufficient supply of our product as their
raw material. Thus, being the only company to produce it, our company will not only create employment for
itself but also increase the level of employment in the chemical industry sector. Based on the law of supply
and demand, the current and projected high demand for the product in the Philippines show that the
company can reasonably sell higher prices thus generate higher incomes for its employees. The cost of
aniline in the Philippines will be much inexpensive as compared to imported from other countries. GDP is a
very vital indicator of an economic progress. The chemical industry accounts to 6.10% of the Philippine
GDP, thus, NPC will be able to contribute to the increase in GDP as soon as it starts to operate in the
country. NPC will not just only create employment and income for the company, but also increase the level
of employment, income and output of the other sectors of the economy. In addition, an increase in GDP
 PRODUCTION OF ANILINE FROM CATALYTIC HYDROGENATION OF NITROBENZENE .

means economic growth. Thus, there will be higher incomes, lower unemployment, lower government
borrowing, improved public services, and it will encourage investment and, therefore, encourage a cirtuous
cycle of economic growth.