Document 8abVV4Eo2278M72wBKRoRg9Z

REQUEST AND AUTHORITY FOR CAPITAL EXPENDITURES / RETIREMENTS DIVISION OR COMPLY Organic Chemical Division LOCATION J.O. CONTROL POINT Chicago,T11 nq?______ Purchase stretch wrapping machine. REPORTING CLASSIFICATION DATE APPROVED JOB ORDER NO. Bl SUMMARY OF AMOUNTS DESCRIPTION LOCAL CURRENCY U.S. DOLLARS e s t ima t e d p r o j e c t c o s t DISMANTLEMENT EXPENSE .$5137 TRANSFER EQUIPMENT GROSS AMOUNT FOR APPROVAL LESS TRANSFER EQUIPMENT LESS SALVAGE OR TRADE-IN ALLOW. 5127 I COST RETIREMENT DATA AMOUNT DISMANTLEMENT LESS SALVAGE TOTAL- CHARGE RESERVE DESCRIPTION AND R EASON 5 REQUIRED ECONOMIC JUSTIFICATION 6-YEAR AVO, NET SALES NET SAVINGS BEFORE TAXES NET AFTER TAXES % ROI (ON TOTAL INVEST.) PAYOUT YRS. R EV. #; 1 2 3 4 5 6 REVISIQI< DETAIL (c r o s s AMTS.) DATE AMOUNT CUM. AUTHORIZATION - Funds of-----------------------------------`-------------------------------------------------------------------------- $5127.00 are requested to purchase and install a stretch wrap machine. cr i'A iv a jwr x x> Description and Reason Requested Proposed Work and Cost This capital order requests $5,127.00 for the purchase of an I.P.M. stretch wrap machine. Present Situation Lead stabilizers, budgeted for sales of M7.85 lbs. in 1980 are shipped 2000 lbs. (40. x 50 lb. bags) to the pallet. As a result of restrictive government regulations regarding air borne lead dust concentration, three of our major customers (Ml.6 lbs. annual sales) now require that we stretch wrap all shipments. This overwrap will contain any lead dust generated by product sifting from the paper bags. In 1977 a heat cannon was purchased for shrink wrapping a relatively small volume of the stabilizer sales. However, this unit is not designed for the volume of business now involved. Justification The Chicago Plant has been advised by sales (see attached letter) that three of our major customers totaling Ml.6 lbs./year sales require stretch wrapping. With growing interest at other accounts for use of the stretch wrapping technique, it is prudent on our part to quickly satisfy the requests of the stabilizer customers. -( It is estimated that the additional cost for stretch wrapping stabilizer will be $0.001/lb. This proposal has been reviewed with A.Bokros and George Van Hare with no objection noted.. Commercial Factors This order supports a plant budget for lead stabilizers as follows: Sales-Pounds 8,650,000 Budget for 1979 Sales-Dollars $4,512,000 Profit on Sales 1,548,000 (34%) 4** A AAA C VAATAM I JD> Sales-Pounds 6,419,200 First nine (9) months of 1979 Sales-Dollars $4,404,900 Profit on Sales 1,195,500 (27.1%) Details of Proposal Purchase one International Packing Machines, Inc. (I.P.M.) stretch wrap machine for the purpose of stretch wrapping pallets pf PVC lead heat stabilizer. Production Factors This proposal will not alter product quality or production rate. Contingent Future Commitments This proposal will not require additional funds to complete. Alternatives Considered ! 1. Shrink wrapping-installation costs estimated at 12-$17,000 with annual operations cost far in excess of stretch wrapper. ; 2. Manual overwrapping and strapping is more expensive and does not perform as well. Risks No operating risks are involved. Concise Summary Installation of the stretch wrapping machine will allow the plant to satisfy customer demands and maintain the excellent sales position now enjoyed by lead stabilizer (Cyastab). Failure to provide this customer service could result in significant loss of sales.j r-VlWT QUOTATION From . CENTRAL STAPLE & SHIPPING SUPPLIES, INC. 2450 Pan Am Blvd. Elk Grove, Illinois 60007 312/595-7882 r To American Cyanamid 4500 W. 15th Chicago, 111. 60623 ~1 Inquiry No._ nn<n June 19. 1979 Terms_^2lli_^y. Prices quoted qte . f h r staples, Fla. Delivery- Attn: H. G. Gaffney L Plamt Mgr. We are pleased to quote as follows. Your inquiry Quantity Description 1 Model 4875 DR Wide web double roll J Price $ 4295.00 Amount 1 TCD 60 Top Sheet Dispenser 60n film width capacity 350.00 o Dear Mr. Gaffney, Please disregard our quote of June 18th as the price amd machine description were incorrect. AM: ; >, ;ii'. cu. !y.:> S'l j, ILL, 6GIV.3 M 2 0 1919 BUDD BUSINESS FORMS CHICAGO 523-El!0 Don Ross By------- -- -------- ------------- N12498.01 _ Polymer Additives Department Memorandum To: H. C. Gaffney Location: CG Plant From: R, F. Anderson Location: bb Extension: Subject: Lead Stabilizer Stretch Wrapping Date: 6/5/79 Reference: Copy to: T1. B. Dorf H. A. McKenzie J. J,, Cardone L. C. Allen G. A. Menghi J. A. Zebrowski As discussed on several occasions, there is growing interest in the use of plastic overwraps for the palletized shipments of lead sta bilizers. Three of our major customers, Tenneco, Teknor Apex, and Conoco, now require that we stretch wrap all palletized shipments. These three customers collectively comprise 1.6 M pounds annually of stabilizer business and there is growing interest at other accounts in the use of a pallet overwrap. Since our current "heat gun" approach to shrink wrapping appears inadequate for the volume of business now involved, we strongly suggest that arrangements be made to purchase the more efficient stretch wrap unit that reportedly costs approximately $8,000. This request is consistent with our desire to be a leader in responsible packaging of potentially toxic plastics additives. AMERICAN CYANAMID CO. 4500 W. 15th ST. CHICAGO, ILL. 60023 . RFA:sd R. F. Anderson JUN ^ 7 1979 NA 839 REV. 7-77 ~."7-77 llStHSeiSffil N12498.02 VHJ T :*** O