CHAPTER I

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale for the Study

According to the Ocean Conservancy and McKinsey Center for Business and

Environment in 2015, five countries are accountable for up to 60% of the marine plastic

entering the oceans. The Philippines, among others, is responsible for the increased risks

associated with this alarming statistics on plastic pollution. In fact, the country is yet the

highest collector of garbage among the Southeast Asian countries with less than half of

the plastic garbage end up being recycled. In 2017, the Department of Public Services of

Cebu City raised concern on the significant increase in the generation of garbage from

260 to 500 tons per day in 2014 to close to 600 tons per day in that year.

Plastic bottles are commonly made of Polyethylene Terephthalate (PET) which is

highly recyclable. Creating something useful out of waste can be the solution of this

problem. Recycling unwanted plastic into polyester fabric may be able to address this

issue. Studies show that 10 plastic bottles are used for 1 pound of polyester fiber. With

this, millions of plastic bottles can be recycled with enough production capacity. Countries

like the United States, China, and Haiti have begun this practice. Polyester fabric has
useful properties including durability, wrinkle and abrasion resistance, chemical

resistance and many more. Its hydrophobic property makes it a suitable material for jacket

and quilted garments.

With the knowledge that the process is possible and already employed in some

countries, the proponents decided to conduct this study to determine its feasibility and

sustainability. The study will focus on how to utilize waste plastic bottles at a maximum

and reduce those thrown in landfills and dumpsites particularly in Inayawan dumpsite. If

implemented, it will promote the improvement of Inayawan dumpsite and other

neighboring places and maximizing the livability of the areas. Indirectly, the project will

help minimize the global warming and conserve natural resources.

STATEMENT OF THE PROBLEM

The primary objective of the study was to determine the viability and feasibility of

the Proposed Production of polyester fabric made out of Polyethylene Terephthalate

(PET) bottles. Specifically, it aimed to answer the following queries:

1. Is the proposed project feasible under the following aspects?

1.1. Technical

1.2. Marketing

1.3. Management

1.4. Legal and Taxation

1.5. Financing

1.6. Socio-Economic Desirability

 1.7. Strengths, Weaknesses, Opportunity and Threats

2. Based on the findings, what recommendation and suggestions may be proposed

regarding the project?

SIGNIFICANCE OF THE STUDY

Information has been gathered through different methods of data gathering. This

study is made to ascertain whether the Proposed Production of Polyester Fabric from

Waste Plastic bottle will be feasible and viable by the time it will be introduced in the

market. In the process, the data and information gathered from this study are believed to

contribute significant benefits to different sectors. Among these sectors are the following:

Government

It is the role of the government to promote the general welfare of its people. Given

the concerns of the people regarding plastic pollution, the government must act to

encourage more recycling. This study will guide the government agencies regarding the

assistance they can provide. This study will enable the government to establish policies

and regulations that are necessary for the industry. Moreover, this will also help them in

assessing the entity regarding tax obligations. Through the information that will be

gathered through the study, the government will be aided with the legality of the

operations of the business.

Teachers

This study will give the means to the teachers to assess the extent of students’

encouragement to think of ideas learning on the lessons. This will aid the teachers to
provide that will give proper guidance to the students. Furthermore, this will give them

chances to comprehensively and clearly present lessons for students to have a full grasp

of lessons that are uncertain to them.

Proponents

This study will give the chance to the proponents to utilize their knowledge on their

specific fields. This will serve as an avenue for application of their acquired knowledge in

accounting and business-related studies. This enhances their analytical and technical

skills. This will also give them the opportunity to advance their communication through

their interaction with the different sectors of the community. Proponents will get to know

themselves better because this study entails discipline, hard work, and cooperation

among the members. Through the conduct of this study, proponents are enabled to

acquire new knowledge and skills that will guide them in various situations that will also

aid them once they enter the corporate world.

Future Researchers

The information gathered in this study will serve as a reference and guidance for

future researchers who wish to conduct related-studies. This study will enable them to

gather additional data and information that may be necessary in uncovering new ideas

that may help the society as a whole.

Prospective Implementers

The proposed product is new in the market. This will provide various opportunities

to the prospective implementers to use the data collected for the formulation of their
strategies. Through expansion of their investments, they can have higher profits and

larger market share. They will also take part in the reduction of waste in the environment

that may eventually be part of their corporate social responsibility.

Financial Institutions

The main activities of financial institutions are the funding and credit activity. The

analysis of the feasibility of this study will help them in making important decisions at

granting loans to the implementers. This study is conducted through thorough research

and careful analysis of different factors affecting the proposed product. The financial

aspect of this study is based on forecasting methods and analytical tools in which the

financial institutions can base their decisions on.

DEFINITION OF TERMS

It is important to define some of the words to make the readers understand and

grasp its contents. The following definition are:

Polyethylene Terephthalate

It is abbreviated as PET. It is a plastic resin and is the most common type of

polyester used commercially in making fibers, clothing, and beverage containers.

Polyester Fabric

It is a generalized term for any fabric or textile, which is made using polyester yarns

or fibers.
Depreciation

It is an accounting method of allocating the cost of a tangible asset over its useful

life. It is used to determine expenses to be recognized for the decline in the value of

machineries and equipment over time.

Knitting

It is a process of interloping the produced threads which came from plastic bottles

to become fabric. The resulting knitted fabric consists of horizontal parallel courses of

yarn which is different from woven cloth.

Carding

It is a process of separating individual fibers, using a series of dividing and re-

dividing steps that causes many of the fibers to lie parallel to one another while also

removing most of the remaining impurities.

Purified Terephthalic Acid (PTA)

An acid consumed during polyester production to enhance resistance, flexibility

and temperature range.