The Problem and Its Scope

THE PROBLEM AND ITS SCOPE

1.1 Brief Background of the Study

Paper is the most important example of the world's greatest inventions. It was

used to write and print on, cover our walls, clean and filter, among other things. No matter what

date you want to use, the invention of paper was almost instantly a high demand product

Remember, people wrote a long time before paper was invented. They used a variety of materials

in order to write, from clay tablets to papyrus, parchment, animal skins, stones, tree bark and

other items, to keep track of time, products, and other things worth remembering 1. Paper has

been known as one of society's basic building blocks, but has been taken for granted in today's

advanced world. Paper and associated items such as paperboard, cardboard, tissue and newsprint

incorporate the present generation's social fabric2.

The pulp and paper industry of the Philippines contributes around P30 billion annually to

the economy in domestic sales value, or saves the country $700 million annually in foreign

exchange from imported paper and board. Although paper and paperboard consumption remain

low at 19 kg per capita in the Philippines, total annual demand is growing at 2.5 percent per year,

with high growth levels for packaging and tissue grades. In addition, overall paper and board

demand in the Philippines is expected to reach 2 million tons at current consumption rates within

five years, or an additional 0.3 million tons per year. The Philippines currently has twenty-four

(24) non-integrated paper mills with a total annual production capacity of 1.3 million tons of

paper and paperboard, as well as four (4) abaca pulp mills producing 25,000 tons of non-wood

specialty pulp per annum3.

According to the DENR, recyclable waste accounts for nearly a third of MSW (27.78%)

with an estimated range of 4.1% to 53.3%. Plastic packaging products compose approximately

38% of this waste fraction and paper and cardboard waste, contributing approximately 31%.

Metals, glass, fiber, leather and rubber make up the remaining 31 percent. The typical

composition of MSW in the Philippines is shown in the Figure 14.

Figure 1: Composition of municipal solid waste in the Philippines, 2008-2013

Despite the high amount of waste paper produced, the Philippine paper industry remains largely

a net importer of waste paper products as its primary raw material2.

For the past years, intensive programs have tried to promote paper recycling. In addition

to reducing pollution and conserving landfill space, the main argument in favor of recycling

paper is that it preserves trees, which is justified by the fact that trees generate positive

externalities such as direct amenities, soil conservation, and carbon sequestration5. Paper is

mainly recycled for producing recycled paper6. Recovered paper or board is converted into

recycled pulp in increasingly complex process chains, the main purpose of which is to remove all
The Problem and Its Scope

unsuitable or potentially detrimental substances from the fibers. All fibers of the resulting

recycled pulp therefore have at least once before been part of a paper or board product7.

The paper production from the recycled fiber requires less energy; conserves the natural

resources respectively, wood and decreases the environmental pollution. Paper recycling can

reduce the volume of solid wastes while producing a main product with less raw material and

energy costs8. Therefore, the reuse of waste paper can be still an effective solution to provide

necessary raw material for this large lignocellulosic-demanding industry, with less costs, while

turning a type of solid waste into a main product and to overcome environmental challenges

caused by this waste material. Ultimately, although the world’s population is growing and

paper’s diverse utilizations are expanding more and more, recycling should be encouraged to

take on a larger share of the product mix offered by the paper industry9.

1.2 Statement of the Problem

The study was conducted to determine and measure the achievability, efficiency, and

profitability of proposed ReSus Paper Recycling Company in General Santos City. This study

was aimed to answer the following questions:

1. Was the proposed ReSus Paper Recycling Company achievable in following aspects:

1.1. Marketing Aspect;

1.2. Technical Aspect;

1.3. Management Aspect;

1.4. Financial Aspect;

1.5. Socio-Economic Aspect?

2. What will be the recommendations to improve the proposed business?

1.3 Objectives of the Study

The following are the company's goal in building a paper recycling company in the aspect

of industry:

1. To improve the country’s wastepaper recovery and recycling rate;

2. To improve the access of affordable newsprint products in Mindanao.

3. To provide best quality of newsprints to offices, printing press companies, and

schools.

4. To enable the local mills in achieving economic competitiveness and thus, contribute

to poverty alleviation and national development.

1.4 Scope and Limitations of the Study

This study focuses on the recycling of used papers from different institutions, companies

and residences. The desired product will be a newsprint which will be composed of different

types of papers collected.

Moreover, the company will cover four aspects of a proposed project as discussed below.

1. Organizational Aspect

This aspect deals with the type of business, form of business organization,

organizational set-up, hiring, utilization and maintenance of employees.

2. Technical and Operational Aspect

This aspect includes the methods and means of production resulting from

the type and quantity of manpower, machinery and equipment, raw

materials and other supplies that will be used.

3. Market Aspect

This project includes the operation and the statues of the product, the

promotion and advertisement, the pricing structure, projected sales, and

the channel of distribution.

4. Financial Aspect

This aspect will cover the following: estimate of the total project cost,

initial capital requirement, pre-operating cost, sources of financing, and

financial evaluation.
The Problem and Its Scope

BIBLIOGRAPHY

1. Graham, K. How the invention of paper changed our world. (2017).

2. Parayno, P. & Busmente, M. G. Integration of Solid Waste Management Tools in Specific

European and Asian Communities (ISTEAC). Environ. Sci. Inst. 63, 40

3. Securing The Future of Philippine Industries.

4. EMB - DENR. National Solid Waste Management Status Report (2008-2014). 62 (2015).

5. Tatoutchoup, F. D. Optimal rate of paper recycling. For. Policy Econ. 73, 264–269

(2016).

6. Vukoje, M. & Rožić, M. Various valorisation routes of paper intended for recycling - A

review. Cellulose Chemistry and Technology (2018).

7. Grossmann, H., Handke, T. & Brenner, T. Paper Recycling. in Handbook of Recycling:

State-of-the-art for Practitioners, Analysts, and Scientists (2014). doi:10.1016/B978-0-12-

396459-5.00012-X

8. Čabalová, I., Kačík, F., Geffert, A. & Kačíková, D. The Effects of Paper Recycling and its

Environmental Impact. Environ. Manag. Pract. 329–350 (2009).

9. Khosravani, A. & Rahmaninia, M. Paper Recycling, an Old But Still Effective Solution.

Lignocellulose 1, 164–165 (2012).