Document ExKjLjMQqKNRa23k3YBDk2LgL

x L Revest For Capital Expendltures/Retlrements REPORTING CLASSIFICATION D3 DATE APPROVED 4/12/82 JOB ORDER NO. OC-5664 Organic Chemicals Division JCATION Chicago Plant J.O. CONTROL POINT " 097 JOB TITLE Replace two building 19 dust collectors ' DESCRIPTION ESTIMATED PROJECT COST DISMANTLEMENT EXPENSE TRANSFER EQUIPMENT GROSS AMOUNT FOR APPROVAL LESS TRANSFER EQUIPMENT LESS SALVAGE OR TRADE-IN ALLOWANCE NET CASH REQUIRED (r-3027) LOCAL CURRENCY U.S. DOLLARS $75,168 $> / D , Jl O 0 | $75,168 1 RETIREMENT DATA DISMANTLEMENT LESS SALVAGE 2.343 TOTAL CHARGE RESERVE 2.343 DESCRIPTION AND REASONS REQUIRED ECONOMICS as colled for in General Procedure Memo#3 Attachment C* (Attach calculations) ECONOMICS PERIOD REV.# REVISION DETAIL (GROSS AMOUNTS) CUM. AVTHO RIZATION NAT (PROFIT/SAVINGS) TOTAL INVESTMENT % ROI Io n t o t al in v e s t .) INTERNAL RATE OF RETURN PAYOUT OF NEW FIXED CAPITAL Funds of____________________________________________________________________________________$75,168 are requested to replace the two building 19 Pangborn dust collectors in compliance with the' February 15, 1981 OSHA agreement `'5 -7 7 NA 3006 REV. 5- CYaNAMiO Description arid Reasons Required OC-5664 4/12/82 Proposed Work and Cost Funds of ____________________________________________________ $75,168 are requested to replace the two building 19 Pangborn dust collectors in compliance with the February 15, 1981 OSHA agreement. Present Situation When the first major modification of the plant's ventilation equip ment was undertaken in 1976, it was recognized that the Pangborn dust collectors built in 1936 were marginal at best. It was decided to include them in the plant's ventilation program and replate them at a later date as we continued with our recrular OSHA program. The dust emission points serviced by the two Pangborn dust collectors are our major sources of lead dust emissions into the work area, and can only be controlled by installing a new ventilation system. Justification ' ' , This location is the only Cyanamid plant which produces lead based heat stabilizers for the PVC industry, primarily that which supplies the wire and cable segment. The Chicago plant is a viable operating unit of the Plastics Additives business, lead stabilizers consistently having returned in excess of 10% NAT over the past several years. If we are to continue to manufacture we have to maintain our excellent relationship with OSHA, demonstrate diligence in our efforts to fur ther reduce airborne lead, and remain in compliance with the February 15 1981.OSHA agreement. Commercial Factors m This order supports a plant budget for lead stabilizers as follows: Budget, all stabilizers, 1982 SALES MARGINAL INCOME POS lbs $ $% $% 6400 5,207 2,337 44.9 1,512 29.0 N14603.01 CYWI 2 5--0007271 !.... 1M j' CYANJUMD 2 0C-56o 4/12/82 Actual, all stabilizers, Full year 1981 SALES MARGINAL INCOME POS Lbs $ $% $% 6422 5,092 2,406 47.2 1,665 32.7 Details of Proposal The new dust collector will be installed on a cement pad at the end of the plant's railroad spur located between buildings 19 and 20. The railroad car-stop will be moved ten feet forward to accommodate the new dust collector. This dust collector will cover the pick-up points formerly covered by the East and West Pangborn dust collectors. The empty bag cofnpactor will be relocated to building 24 and provided with dust collection from an existing dust collector. The dust collector selected has been chosen because of its capacity, ease of maintenance and energy efficiency, and has been selected with the help of the local company who will install the collector and modify the ventilation system. This company specializes in in dustrial ventilation systems. The collector will collect in excess of 99% gf the dust from the relevant dust emission points. This will clearly reduce airborne lead levels, although it is difficult to pre dict actual levels due to varying conditions in the workplace. It will not, however, bring us into compliance with the current OSHA Standard of 200 ug/nt or the proposed standard of 50 ug/m . Production Factors This proposal will not alter product quality or production rates. Contingent Future Commitments * There may be a peed for additional capital expenditures in 1983 to either receive an extension from OSHA or to meet the OSHA airborne lead requirements. Alternatives Considered 1. Do nothing. This is clearly in violation of our February 15, 1981 OSHA agree ment and puts us in conflict with OSHA, which could lead to closure of the plant. We have to provide OSHA with a semi-annual progress . report, and in the most recent report we indicated that plans for the replacement of the Pangborn dust collectors were on schedule., CYWI 25-0007272 CYANJUVUD 3- OC-5664> 4/12/82 2. Less expensive approach All dust collectors of the required capacity are similarly priced. The proposed expenditure is at minimum cost level con sistent with the OSHA agreement. ; 3. Alternative technology. There is no known technology available which would ensure com- 3 pliance with, either the 50 ug/ni proposed standard or the 200 ug/m current standard. A proposal several years ago quoted k$400 with no guarantees of airborne lead reduction to OSHA standards. 4. Buy litharge The dust emission points which have to be controlled are in the litharge production segment of the process. Litharge could be purchased at a premium of 3-4C/lb, an increase of k$175-230 an nually in variable cost. It is therefore more cost effective to make litharge than to purchase. Risks No operating risks are involved. Concise Summary Replace the "two 45 year old Pangborn dust collectors to reduce the airborne lead in building 19. This is a minimum cost proposal to reduce airborne lead and remain in compliance With the February 15, 1981 OSHA agreement. m ) CYWI 25-0007273 4 #GOE *0*7 REV. 7/62 DETAIL SHEET s h b r i*. 1 7/62 COMPANY \merican Cyanamid ITEM OR CODE NO. DESCRIPTION JOB ORDER NO. LOCATION Chicago EQUIPMENT OR MATERIALS OC-5664 4/12/82 January 6, 1982 ENG. MECH. SVC. 1 Dust collector ' 19,895 500 20,395 2 Fan 3,879 3,879 3 Air lock Valve 807 807 4 Electric 5 Move Railroad Bumper 2,500 200 8,266 1,000 10,766 1,200 6ff 6 Foundation 275 1,225 1,500 7 New Dust Collector Installation 7,700 23,002 8 Biiiler Exhaust System 1,000 1,581 30,702S^ 2,581/ / 9 Piping 500 500 1,000 10. Freight Tax 500 1,838 500 1,838 (trf) Totals 39,094 35,574 500 75,168 Dismantlements 1-Pangborn Dust Collector 1-Pangborn Dust Collector Acq. Date Acq. Amt. Dispositio i 6/71 6/71 2,343 Retire in >lace' 2,231 * In Service r#1 j r-jua*.: y *V.' CYWI 25-0007274