Document 3mp0bwpJ7d7YQKd1MRrq7z8x

CPYAMAMID Request For Capital Expenditures/Retirements D'v,s,ONdrgfc Che*&<l Div.s o* LOCATION Chicago, Illinois CONTROL POINT 097 JOB TITLE Repair kiln firebox REPORTING CLASSIFICATION Expense DATE APPROVED JOB ORDER NO. SUMMARY OF AMOUNTS DESCRIPTION LOCAL CURRENCY ESTIMATED PROJECT COST U.S. DOLLARS ~$*360------------ DISMANTLEMENT EXPENSE TRANSFER EQUIPMENT GROSS AMOUNT FOR APPROVAL LESS TRANSFER EQUIPMENT LESS SALVAGE OR TRADE-IN ALLOWANCE NET CASH REQUIRED (COr- 3027) $o3oO , -36300 | 1 RETIREMENT DATA COST DISMANTLEMENT LESS SALVAGE AMOUNT TOTAL - CHARGE RESERVE DESCRIPTION AND REASONS REQUIRED ECONOMICS os called for in General Procedure Memo#3 Attachment C. (Attach calculations) ECONOMICS PERIOD NET SALES NAT (P r o f it / s a v in g s ) TOTAL INVESTMENT % ROI (o n t o t a l in v e s t .) INTERNAL RATE OF RETURN PAYOUT OF NEW FIXED CAPITAL REV.# 1 2 3 4 5 6 7 REVISION DETAIL (c r o s s a mo u n t s ) DATE AMOUNT CUM. AUTHORIZATION Funds of ............. ...................... ...................................................................6360 are requested to repair the kiln firebox SUMMARY OF ESTIMATED COST - D.toils on GOF-3027 ITEM NO. DESCRIPTION Repair kiln firebox ESTIMATE NO. STARTING' OATE MATERIAL LABOR CompletedCOMPLETION DATE ENGINEERING TOTAL 3000 3260 100 6360 ITEM NO. NET CASH REQUIRED ACCOUNTING TREATMENT DEPR.RATE 3000 3260 100 APPROVALS N AME Dr, $6f360 Expense as incurred /j cS* /f r 6360 DATE r/iz/pr ACCOUNTING TREATMENT / ECONOMICS APPROVEO BY DIV. CONTROLLER [CHECK BOX(ES)J B>P POST AUOIT PERIOD P.OST AUOIT DUE DATE DISTRIBUTION DIVISION PRESIDENT/DIRECTOR ' CORPORATE Or FI CER DESCRIPTION AND REASONS REQUIRED A. PROPOSED WORK AND COST Funds of ------------------------------------------$6360 are requested to complete the annual rebuilding of the large, oil fired, kiln firebox. B. PRESENT SITUATION The oil fired kiln firebox as a result of high heat and normal expansion and contraction must be rebuilt each year; normally in December during low sales. The firebox rebuilding was postponed from December due to extremely high sales, but the condition deteriorated so badly that repairs were scheduled for April. C* JUSTIFICATION The Chicago Plant is budgeted to make 10,000 k pounds of bulk litharge for 1979 to support the manufacture of lead stabilizers at the Chicago Plant, and lead-chrome pigments at Willow Island. Without the kiln, the plant would have to buy litharge. The yearly premium would amount to between $ 300 k and $ 400 k. D* COMMERCIAL FACTORS This order supports a plant budget as follows: First Five (5) Months of 1979 Sales - Pounds Sales - Dollars Profit on Sales 4,086,000 $2,578,000 788,000 (30.6%) Budget for 1979 Sales - Pounds Sales - Dollars Profit on Sales 8,650,000 $4,512,000 1,548.000 (34%) E. DETAILS OF PROPOSAL Remove and rebuild the kiln firebox. Realign kiln burners. F, PRODUCTION FACTORS This proposal will not alter product quality or production rates. G. CONTINGENT FUTURE COMMITMENTS This proposal will not require additional funds to complete. CYWI 24-0006346 C VAJVAMX JD H. ALTERNATIVES CONSIDERED Purchase litharge at a premium of three to four cents per pound. This would involve a $300 k to $400 k Increase In yearly costs. It is cheaper to make litharge than to buy it. Therefore, repair present kiln. I. RISKS No operating rtsks are involved. J* SUMMARY In order to continue the operation of the kiln which is required to manufacture the plants basic Ingredient, litharge, the rebuilding of the fi rebox Is mandatory. CYWI 24-0006347