Document DGYdGYEV5527bXJXBe94BzD5Q

FILE NAME: Mead (MEAD) DATE: 1974 Mar 12 DOC#: MEAD018 DOCUMENT DESCRIPTION: Letter to Mead from Cement-Asbestos Products Co. RE Requested "Get By" Figure on Expenditures for CAPCO Mr. H* G. Davis, Mr. G, H. Kettering, M r . W . A. Enouen, M.r............W..............O...........N....u...g.. .e. n't * MAR15 1974 W . L . B . CEMENT/ASBESTOS PRODUCTS COMPANY Saks Offices, 2144 Highland Avenue, South ! Birmingham, Alabama 35205 Phone 205 933-7231 W.L. B, WILUAM ft.80K0 Chelimon th &oard Mr. Warren L. Batts, President The Head Corporation Talbott Tower Dayton, Ohio 45402 , 1\V1\\ '1 \l {* March 12, 1974 M E A D / H E N D E R S O N 00320 Dear Warren; You asked for a "get by" figure on expenditures for CFCO. Ragland Location (Attached is Baker's and engineers* report relative to OSHA and estimate to handle.) . __ TM "Recapitulation of Baker's and Engineers' Report W. R. B o n d 's Estimate Fibre Warehouse $ 59,600 Batch Area 15,000 Coupling Lathe & CutOff HA Finishing Line & Dry Lathe 26,000 Cut Off Saw & Miscellaneous 15,950 Liquid Waste ' ,,-- Jabi-iSS. $ 129,550 Land Dozer $ 226000,,,000000000 26,000 50.000 ? 25.000 $ 201,000 30,000 (could possibly 50,000 contract out) $ 80,000 Total 281,000 The above figure takes care of the OSHA requirements at the plant, it does not include the amount of $194,520 for a dry mixing system. Our effort of controlling the cement reaction in the present wet system has proven successful, and I think we should delay any change of systems at this time* Some of th money, $15 - 20,000, to be spent on OSHA, mainly dust and fibre emission eontrol in the batch area, will be expendable should we later install the dry mixing system. In addition to the above, we should provide the following money at Ragland for - Mandrels Trays (10 $1500.) Mise. Replacements $ 50,000 15,000 .iP,opo $. 90,000 (addition and replacement items) Manufacturers of Cement Asbestos and P, V. C. Pipe with FERMAFLEX Joints Mr. Warren L. B atts Page Two March 12, 1974 MEAD/HENDERSON00321 Mandrels - we do not have sufficient mandrels to make a complete run of some sizes of pipe; for instance, when operating on 16" size we must mix 14" and 10* sizes. When making 10" pipe we must tun 6" Class 200. This is inefficient, causes opera ting problems, loss of quality, and increased costs (because of the foregoing and increased fibre formulation), There is a long delivery time on mandrels and 1 ex pect to have then made from ductile iron at Lynchburg in order to expedite. The Plan set aside $40,000 for this purpose. Presently we have remaining three 16" ISO# class mandrels; an impossible situation, Trays - when manufacturing large diameter pipe there is insufficient numbers of trays in which to place the pipe. This pipe must be set aside and handled twice in processing, which results in excessive loss and increased costs. ' Miscellaneous Replacement - this is a throw-in figure to take care of conditions and equipment which may be necessary to improve or replace. One example is a stock distribution screw in the pipe machine vat. The engineers assure me they can do the'job for the figure they have mentioned. My figures are outside estimates, _including items they have not mentioned and from which the following comparison is made'; rno:-{na.'>rs< .Estimate W. R. Bond's Estimate Grand Total $ 299*550 ' $ 371,000 Van Buren Location OSHA Solid Waste Disposal Other . $ 80,000 (could possibly contract out) 25,000 $ 105,000 Additional Autoclave -Additional Trays Miscellaneous 75.000 15,-000 (may -need- a- few more) 25.000 " Total $ 115,000 Van Buren manufactures a greater amount of large diameter pipe than Ragland, Van Buren has insufficient autoclave and tray capacity. Studies are being made to reduce auto claving time but it is doubtful if the need for additional autoclave capacity can be eliminated based on the present product mix. ` Lack of sufficient tray capacity requires double handling of the pipe, resulting in damage to the pipe with added cost. Miscellaneous is to change and improve some of the conditions which are causing problem* One example is the installation of stock .distributor ..screws to the pipe machine vats. Facilities to blend two types of cemdht are'desirable. Tfttial JiTsm iiron $ 520.am. Mr. Warren L. Batts Page Three March 12, 1974 MEAD/HENDERSON003M Ragland Van Buren Grand Total Ragland Engineers'1 Estimate $ 299,550 220.000 $ 119,550 W. R. Bond's Estimata $ 371,000 220,000 $ 591,000 With the exception of the mandrels, trays, and autoclave, there is little cost saving as the expenditures are made to meet OSSA requirements, Savings can be made by doing some of this work with the plant people. Mr Weaver's recommendation to Mr. Messell of December 24, 1973, amounting to 1.2 million, was designed to provide cosf Japrovements base.*J V 1 aae and products now being purchased from the outside, such as P?C couplings. Based ^ thfimprovement in the operation at Ragland,- namely learning to use the -cement .rom National,^getting the quality and maintenance under control, also, applying this nowledge and assistance from Ideal Cement Company to the cement problems at Van Buren, 2 d assessing the need for the product and the trend towards increased prices in the . rkeSlace? I would suggest proceeding as outlined; holding the cost to the minimum 2 d programming in order to take' advantage of any savings in doing most of the work ourselves. ' Sincerely, Enclosures (3) WEBrp ML R. Bond