Document 4qq79YNkbGxjn0oXDz8OX8JV

FILE NAME: WR Grace (WRG) DATE: 1972 DOC#: WRG299 DOCUMENT DESCRIPTION: 1972 Request for Capital Appropriation for Vermiculite Ore Silos \ACD 130N (Domestic) REQUEST FOR CAPITAL APPROPRIATION Division_____ Construction Products Division_______________ RCA E72-125 Project Title Vermiculite Ore Silos - Trenton New Jersey Amount to be Authorized: Per This Request $U8,000 As Budgeted U2.000 Under/(Over) Budget ($ 6,000) Time Schedule Begin Spending Complete Spending Begin Operations April, 1972 August, 1972 September, 1972 Authorization is requested to: Install four 200-ton vermiculite ore silos at Zonolite's Trenton, New Jersey expanding plant. This equipment will replace six open ore bins which are fully depreciated. The present ore bins are located within the plant and are not covered. Any ore handling creates considerable airborne dust and the bins have been cited as a pollution hazard by the New Jersey Department of Environmental Protection. Failure to correct this deficiency will result in a shutdown of the Trenton facility. The proposed silos, located on concrete pads outside the plant, have been reviewed and approved by the pollution control authorities. In addition, they will provide needed space in the plant. The Trenton plant services the metropolitan New York and Philadelphia 7 area. In 1971* it contributed $392,000 in gross profit. The requested authorization of $U8,000 is $61,000 (lhi5) over budget. This overrun reflects higher design and material costs than orgiaally indicated. AVERAGE CAPITAL EMPLOYED AND OPERATING RESULTS ________Z0N0LITE________ (Based on 1973 Estimate) Avg. Grace Capital Enrol. Net Income % Return GCE Cash Excess/(Def) From Operations With This Project $23,797,500 $2,539,700 10.7* $1,5^0,000 Without This Project 23,753.700 2.5U2.200 10.7 1,537,70.0 Difference Fav/(Unfav) $ (U3.800) $ (2.500) - % nts. $ '2.300 APPROVALS Financial V.P. Manufacturing V.PC / y Operations V.P. / Presi dent_____ /"flL*- \ - s -c-t./- ... Date WB SCHEDULE I - CAPITAL EMPLOYED 1. Fixed Assets Four 200-ton Steel Silos $8,500 each (erected) Concrete Pad -1*0 ft. x 1*0 ft. Design and Engineering $3b,000 10,000 U.000 $1*8.000 ^ 2. Assets to be Retired Date Acauired Six Open Ore Bins 1931 Purchase Net Book Value Price A/0 6/31/72 $3,000 $--0-- ' SCHEDULE II - DEPRECIATION Cost Annual Depreciation Equipment (10 year straight line) $1*8,000 $1*,800 (l) This capital expenditure qualifies for 1% Investment Tax * Credit of $3,1*00. t