Document NEm74jbnxXwqGxMYw7dGYmN08

NA 3006 REV. 1 1-69 1 1-69 CrAVAKIO * REQUEST AND AUTHORITY FOR CAPITAL REPORTING CLASSIFICATION DATE APPROVED JOB ORDER NO. EXPENDITURES/RETIREMENTS D1 2/14/80 004945 DIVISION OH COMPANY Organic Chemical LOCATION Division J.O. CONTROL POINT SUMMARY OF AMOUNTS DESCRIPTION LOCAL CURRENCY ESTIMATED PROJECT COST U.S. DOLLARS $5127 Ohirann.Til JOB TITLE " nQ7 d is ma n t l e me n t EXPENSE TRANSFER EQUIPMENT Purchase stretch wrapping machine. GROSS AMOUNT FOR APPROVAL LESS TRANSFER EQUIPMENT LESS SALVAGE OR TRADE-IN ALLOW. NET CASH REQUIRED (g o f -3027) 5127 S $5127. 1 RETIREMENT DATA ECONOMIC JUSTIFICATION REVISION DETAIL [GROSS AMTS.) 6-y Ea r AVG. CUM. AUTHORIZATION NET SALES DISMANTLEMENT NET SAVINGS BEFORE TAXES LESS SALVAGE NET AFTER TAXES % ROI {ON TOTAL INVEST.) PAYOUT YRS. TOTAL- CHARGE RESERVE DESCRIPTION AND REASONS REQUIRED Funds of-------------------------------------------------------------------------------------------------------- 5127.00 are requested to purchase and install a stretch wrap machine. c y a iva jvar x x Description and Reasons Required OC-4945 2/14/80 Page 2 of 5 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 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 at a cost of $1100.00 for shrink wrapping a relatively small 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 request 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: Budget for 1980 Sales-Pounds Sales-Dollars Profit on Sales 7,850,000 $6,968,000 2,282,000 (32.7%) CYWI 24-0006315 - - --------------------------------------------------- ---- tC C STAIVA JVf X J> 004945____ 2/14/80 Psge 3 of 5 2- - Sales-Pounds 7,769,900 First eleven (II) months of 1979 Sales-Dollars Profit on Sales 5,512,900 1,489,300 (27%) Details of Proposal Purchase one International Packing Machines, Inc. (I.P.M.) stretch wrap machine for the purpose of stretch wrapping pallets of PVC lead heat stabilizer. This stretch wrap machine will automatically encase each pallet of Cyastab stabilizer with a clear plastic film under tension. The stretch wrapped load will be prevented from shifting or product leak ing during storage or shipment. 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. CYWX 24-0006316 UOTATION From CENTRAL STAPLE & SHIPPING SUPPLIES, INC. 2450 Pan Am Blvd. Elk Grove, Illinois 60007 312/595-7882 r American Cyanamid To 4500 V. 15th Chicago, 111. 60623 ~1 Inquiry No. 0C-4945 2/14/80 Page 4 of 5 Dn June 19. 1979 T.rm, 15 day Prices quoted cge ^ es, Fla, Delivery. Attn: H. G. Gaffney L Plant Mgr. We are pleased to quote as follows. Your inquiry Quantity Description Model 4875 DR Wide web double roll Price $ 4295.00 Amount TCD 60 Top Sheet Dispenser 60" film width capacity 350.00 Dear Mr. Gaffney, Please disregard our quote of June 18th as the price and machine description were incorrect. m to m BUDO BUS I NESS. FORMS CHjCAGO 523-8110 Don Ross By------------------------------------------- :---------------- CYWI 24-0006317 <7 HavtoAMlD Polymer Additives Department 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: F. B. Dorf H. A. McKenzie J. J. Cardone L. C. Allen G. A. Menghi J. A. Zebrowski OC-4945 2/14/80 Page 5 of 5 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. t '3 KFA:sd R. F. Anderson JUN 7 1979 NA B39 REV. 7-77 7-77 CYWI 24-000631