The venture between a pharmaceutical and a petrochemical company involved a plan for a joint production facility in Indonesia. The new plant would produce paracetamol from benzene on an industrial scale. One of the challenges was that it involved a process which was not a core capability.
Market analysis, master planning and financial modelling study
Royal HaskoningDHV was asked to analyse the business case, assessing the feasibility of the project from both technical and economic perspectives.
Our business case consultancy team reviewed assumptions about market size, business environment and growth forecast. We developed a master plan and block layout to explore technical feasibility, and produced a concept screening. Financial modelling, including net present value (NPV), cash flow and more, provided insight into the economic feasibility.
The results indicated that the project was not without challenge but was feasible, enabling the companies to make an informed decision on how to proceed.