Michelle Cruzado Lagumay

BSIE-VGK

Feasibility Study Topic: Eco-blocks/ Eco-bricks Manufacturing Company in Quezon

In order to reduce the plastic garbage in the Philippines, the Philippines Plastics Industry
Association (PPIA) partnered with NESTLE on development of a modular composite brick made with
multilayer single use plastic waste broken down into micro plastic form and cement. PPIA also provided
key information and technical expertise in improving the existing hollow block making system, including
the locally developed equipment designed for processing flexible plastic materials. Additionally, the
association influenced and stressed the importance of developing a holistic system that covers recovery
collection and treatment. The GreenAntz program began with just one machine in one city and is now
operational in 4 cities running 15 machines. GreenAntz has produced around 225,000 bricks so far.

Eco-Block, which was first invented by the Hong Kong Polytechnic University in 2006, is an
environmental friendly brick made from recycled materials and construction waste. The major feature of
Eco-Block is to catalyse the nitrogen oxide and other pollutants in air into non-hazardous substances.
Eco-Block has been mainly used as paving brick in pedestrians and vehicular areas in Hong Kong and it
is now the 3rd generation.

Made from petrochemicals, plastics lead non-biodegradable waste by-products that take 450 to
1,000 years to decompose. Unlike hollow blocks which are made through molding, the production of Eco
bricks uses compression. It also undergoes a propriety process, and its formulation uses a special
construction additive that makes it stronger. Compared to the standard hollow block—with only 150 PSI,
or the resistance to downward force in pounds per square inch—cement eco-bricks are heavier, sturdier,
and more compact. Depending on the shredded plastics mixed with them, cement eco-bricks have up to
670, 770, and 870 PSI. This means that the structures built with them are four times stronger. “How many
times have storms blown through houses made out of traditional hollow blocks?” Dionisio says. “Cement
eco-bricks will definitely make a difference.” According to John Slater Young, an investor in the Cebu-
based Eco-blocks company, “The market, which is influenced by climate change, is starting to demand
more environment-friendly materials. That desire to contribute to protecting the environment has fuelled
more interest in choosing greener alternatives,” Although, Cement eco-bricks are currently priced at P24,
sixty percent more expensive than the regular hollow blocks which can range from P14 for four pieces up
to 16 pesos each unit, it can still minimize the cost of pollution plastic can do in our environment, as well
as the quality of these blocks can take-over the price.

The Philippine construction industry, as of 2019 first quarter, has a registered of 541 residentials
and non-residentials constructions, while the 2018 first quarter has a registered 433 residentials and non-
residentials constructions. A growth of 19.96% in real terms in the first quarter of 2019, based on the
industry's total value in 2018; residential construction was the largest market in the Philippine construction
industry during the review period. Thus, this only means that the demand of the construction materials will
also rise including the demand of hollow blocks. The demand for reasonably priced hollow blocks is assumed
to be growing at 10.5% and construction materials 5.4% which supports the argument that demand is good.
 Concrete blocks or hollow blocks as known by the many, is primarily used as a building material
in the construction of walls. It is sometimes called a concrete masonry unit (CMU). A concrete block is
one of several precast concrete products used in construction. The term precast refers to the fact that the
blocks are formed and hardened before they are brought to the job site. Most concrete blocks have one or
more hollow cavities, and their sides may be cast smooth or with a design. In use, concrete blocks are
stacked one at a time and held together with fresh concrete mortar to form the desired length and height of
the wall.

Another consideration is that the real-estate residential development is in the form of

condominiums and they make use other products such as pre-fabricated materials instead of the typical
concrete hollow blocks. The construction boom doesn’t directly translate to increased hollow block use
and the prices of hollow block are generally stable therefore for these reasons the supplier’s bargaining
power is low.

The success in this industry will be in the costing of the product and the quality. In order to
reduce the overall cost of the product there is a need to meet operation efficiency and effective marketing
in order to achieve economies of scale that will bring down overall costs for our firm while producing a
good quality product.