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91370: 4256
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*H M. P. Lux
Anniston
B D. Banna (4) *S J.C. Landwehr
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F.J. Holzapfel g) H.L. Williams
0 R.E. Howard
S. 2nd St.
*0 H.C, Carder
P.0. DeOarmo
O W.R. Richard t)T.M. Patrick
0 J.R. Savage J.F. Quinn
S 2nd St. "ID R. L. Wiese
"O D. Lynch
*gj M.A. Terpstra
TITLE t
Dept. 233 - Monochlorobenzene: Evaluate the Feasibility of Triand Tetra-Chlorobenzene Production
ocnsoNNEL: w#
Ban (W. M. Dowden, D. C. Armstrong)
rAoii-EW:
Develop estimates for capital requirements, manufacturing costs, and justification to determine the feasibility of installing new
facilities to produce tri- and tetra-chlorobenzenes.
Summary: () v'
Tri- and tetra-chlorobenzenes (TCB and TTCB) are used by the Functional Fluids Group to formulate various blends of-Pyranols and Inerteens. The desired isomers of these compounds are currently purchased from Hooker Chemical for approximately 11^/lb. Due to ecological reasons. Hooker may be forced to discontinue manufacture of product lines from which TCB and TTCB are obtained as by-products. If this happens, our supply of these compounds may be eliminated, or the price may increase to 15^/lb. For these reasons, the economics of self-manufacture were investigated as an alternate to outside purchase.
The process considered would further chlrorinate the crude dichlors produced in the MCB process. Products of this process
would be TCB and 99.5# FDCBJ and 80# orthene production would be eliminated. Facilities designed to produce 10 H lbs. TCB/year would require on the order .of $1 K capital. Manufacturing cost for TCB is estimated to be 12.7 fJ/lb @ the current 5 M lb/yr levei, 8.7flf/lb @ the 10 1? lb/year rate. If the price of TCB remains at v llj{/lb, self-manufacture is not attractive until the volume rises above. 8 H lbs/year. Should the price increase to 15^/lb., the return on investment (before tax) is 15# & 5 H, and 70# @ 10 M. . Considerable laboratory development work would be required to define the process and resolve product quality questions.
DSVM 299079
,^
COMPANY CONFIDENTIAL INFORMATION
ThU document la the property of Monsanto Company end the recipient Is responsible far Its safekeeping end disposition. It contains conflden*
tlal information of Monsanto Company which must not be reproduced, revealed to unauthorized persons or sent outside the company without
I* ope1 authorization. Either retain in secure dies or destroy.
" :
1 ;^
-
roRM WoTsOOREV^/6^"'TM-
STLCOPCB4068991
91370:4256 \(1)
- ...................
Dept. 253 - MCB: evaluate the Feasibility
of Tri- and Tetra-_______ ________________________
Page
ll/i1:3/70 WGK
SUMMARY: (Continued)
Manufacture of TTCB does not appear to be economically attractive due to high capital requirements, poor yields, and high conversion costs. No further consideration should be given to producing this compound. Installation of new facilities to produce Santochlor was evaluated along with TCB, but the low return on investment does not Justify this alternate.
FUTURE WORK:
Review the results of this study with the Functional Fluids Business Group, and, based on the latest information regarding the TCB situation, obtain a decision to continue or terminate this work. If the decision is to continue. Research work should be initiated to develop a tentative process for TCB.
*
C
W. W. Ban Technical Services Department
/tm o
DSW 299080
STLCOPCB4068992
91370:4256 (1) .................. Dept. 233 - MCB: Evaluate the Feasibility
of Tri- and Tetra-Chlorobenzene Production
Page 3 11/15/70
WGK
DETAILS:
Monsanto now purchases trichlorobenzene (TCB) and tetrachlorobenzene (TTCB) from Hooker. These chemicals are essential to : blends of Pyranols and Inerteens. The inexpensive supply of these chemicals ( 11^/lb. of TCB) has been dependent upon the manufacture by Hooker of 1,2,4,5* tetrachlorobenzene (used in 2*4,5 T), and hexachlorobenzene. With the demise of 2,4,5 T, Monsanto*s 11^/lb. supply of TCB/TTCB is dependent upon Hooker's continued manufacture of hexachlorobenzene, a shaky situation at best (See memo in Appendix A). Because of an imminent TCB price hike to ?15^/lb. should hexachlorobenzene production stop* an evaluation was conducted looking specifically at the addition of equipment to Dept. 233 to allow TCB production as an alternate to Hooker. The feed material for such a process would be mixed dichlorobenzenes similar in composition to the material drained from the present Dept. 224 crystallizers.
Two capital estimates were generated:
(1) Involving only that equipment essential to the production
of TCB.
'
*
(2) Involving both capital necessary for TCB manufacture and for upgrading the antiquated Dept. 224 facilities.
Economies were evaluated for (1) and (2) above including estimated manufacturing costs for both TCB and DCB. Those economics included two levels of TCB production.
A. 5 M lbs/yr, corresponding to approximate internal
requirements.
-
B. 10 M lbs/yr corresponding to approximate internal requirements plus anticipated annual sales to General
Electric Company.
The ROI was calculated for TCB production alone and also for a combined TCB/DCB department using both the total asset value and the book value of the combined departments. The results of the investigation follow.
TCB
TCB production is entirely feasible in a continuous plant using mixed DCB as a feed. The cepital estimate for'such a facility, along with flowsheet #1, are in Appendix C. The flowsheet assumes a flash stabilization of reactor crude to remove catalyst and to reduce free chlorides in the finished TCB. Such a flash' may not be
DSW 299081
STLCOPCB4068993
91370:4256 (1) Dept. 233 - MCB: Evaluate the Feasibility of Tri- and Tetra-chlorobenzene Production
Page 4 13/15/70 WGK
TCB (Continued)
effective at this removal. Laboratory work will he needed to determine if a caustic wash rather than flash stabilization is
required to remove free chlorides effectively. If a flash is sufficient, the laboratory program should also determine if TCB reactor crude may be flashed along with monochlorobenzene crude
in the existing Dept. 235 facilities. Such co-utilization of the Dept. 233 stabilizer would reduce the capital estimate by approxi mately $65,000.
The flowsheet also assumes co-utilization of the Dept. 233
.
catalyst addition system. Sulfur is a co-catalyst with PeCl3
in 233. Sulfur is not needed in the TCB process. It is entirely
feasible that the sulfur present in the 233 catalyst mix may
adversely affect the TCB isomer split, Just as it presently alters
the isomer split in dichlorobenzene production. Laboratory work
should be conducted to determine the effect of sulfur on the TCB
isomer split.
The economics of a TCB installation were based on two cases: production of 5 H lbs/yr, roughly corresponding to internal require
c ments and production of 10 M lbs/yr, roughly corresponding to internal requirements plus maximum anticipated sales to General Electric. For each case the economics were evaluated for outside TCB purchase prices of 11^ and 15^/lb. Raw material costs were composed of benzene and chlorine costs only. It was assumed that 99% PDCB would bear all DCB separation costs in Dept. 224 (See DCB section). Figure I shows the results of the economic evaluation. The calculations leading to Figure I are given in detail in Appendix B. This appendix also contains a tentative cost standard sheet for both the 5M and 10 K lbs TCB/year cases.
' v,. vd.'- . o
iv".*
.
;
DSW 293082
STLCOPCB4068994
91370:4256 (1)
Page 5
.. Dept. 233 - MCB: Evaluate the Feasibility
11/15/70
of Tri- and Tetra-Chlorobenzene Production ^
W6K
TABLE I
' ; ss:.
SUMMARY OF TCB ECONOMIC EVALUATION
PLANT SIZED FOR 10 M LBS/YR TCB
j
Capital Requirements Contingency @ 20#
TOTAL CAPITAL
$804,500 l60,860
$965,160
Pounds TCB Produced Per Year
10 H
51
Manufacturing Cost $/CWT
Raw Materials Variable Utilities Other (Labor, etc.)
$3.798/cwt 1.505/cwt 5.400/cwt
$3.798/cwt 2.125/cwt 6.800/cwt
TOTAL MFG. COST $/CWT
$8.705/cwt
$12.725/cwt
Profit from additional acid sales.
$ .608/cwt
Return above present by-product credit.
.
$ .608/cwt
Pounds Produced/Year
5M
10 M
TCB Purchase Price Mfg. Cost
$11,000/ cwt
12.725
( 1.723)
$15.00 cwt
12.723
2.277
$11,000/ cwt 8.703
2.297
$15,000/ cwt 8.700
6.297
Addn'l HC1 New Earn.
$(1.115)/ewt $ 2.885/
cwt
.608
.608
$(1,115)/ cwt
' $ 2.885/ cwt
$ 2.905/ cwt . 608
$ 2.905/ cwt
$ 6.905/ cwt .608
$ 6.905/ cwt
Savings & New Earnings $/fear
$(55,700)/ year
Before Tax ROI on $965,160
-.5.64#
$144,000/
$290,000/ $690,000/
year.
, year
year
14.6#
29.2#
69.7#
DSW 299083
STLCOPCB4068995
STLCOPCB4068996
91370:4256 (1) Dept. 255 - MC: Evaluate the Feasibility of Tri- and Tetra-Chlorobenzene Production
Page 6 11/15/70 GK
DCB
The feedstock to the TCB process would be material presently refined and sold as 80# orthene. 80# orthene would no longer be produced. The refining equipment necessary for 80# orthene would be shut down and retired. The remaining Department 224 refining costs would be charged against Santochlor (99.5# para-dichlorobenzene). Santochlor could be produced in present equipment (see flowsheet #2) or in new, more reliable facilities (see flowsheet #1). Appendix D contains tentative cost sheets for Santochlor production in both new and old equipment. The new process would produce molten rather than block para. Molten is priced 1^/lb. below block. Production of molten essentially means a 1^/lb. reduction in net back on the PDCB presently sold in block form.
To evaluate the effect of DCB work, the ROI on both the book value and total asset value of a combined TCB/DCB department was generated. These ROI's were figured for both the case where only TCB facilities were installed with DCB continuing to run in present 24 equipment^ and where both new TCB and DCB facilities were installed. The results are shown on Figures 2 and 5, and the calculations are shown in Appendix B. For all cases, Santochlor production was "held constant at 11 M lbs/year. Basically the overall TCB/DCB combined asset ROI's were significantly higher for production in the existing facilities. For example for the case where 10 M lbs TCB was pro duced, at an 11^/lb market price, the ROI's on the combined TCB/DCB department asset value were:
ROI on TCB and old DCB facilities
33*8#
ROI on TCB and new DCB facilities
16.9#
In both cases the ROI of TCB savings and new earnings^over TCB capital was 29.2^. New DCB facilities are not economically' Justifiable.
TTGB
Production of TTCB at a reasonable price (<- 20^/lb) does hot appear to be practical. Our difficulties with TTCB isomer splits would be identical to Hooker's. The 1,2,5 TCB isomer is necessary to make desired 1,2,5,4 TTCB. Removing some 1-2-5 from the TCB mix for tetra manufacture means some 1-2-4- TCB will have to be discarded, 1 or we could not meet finished TCB specs on 1,2,5 TCB content. Large capital investment in two high temperature crystallizers, excessively high operating costs, and the need to dispose of large amounts of undesirable isomers makes the manufacture of TTCB unattractive. For these reasons, no detailed evaluation was made for this product. Alternate materials must be developed to satisfy the TTCB market.
DSW 299085
STLCOPCB4068997
91370:4256 (1) Dept. 253 - MCB: Evaluate the Feasibility of Tri- and Tetra-Chlorobenzene Production
Page 7 11/15/70 WGK
Timing
Minimum lead time for a TCB/DCB project mould be between 1-1/2
and 2 years. Such a lead time assumes that all process questions
had been resolved in the laboratory.
'
Conclusions
1. Subject to the successful resolution of the laboratory work noted under Recommendations, TCB manufacture as a part of
Dept. 233 is technically feasible. For the facilities to meet the corporate mandate of a 13$ before tax ROI either
a) the facility must produce more than 77 f? lbs/yr when the outside purchase price is 11^/lb. or,
b) the facility must produce more than 4.8 M lbs/yr. when the outside purchase price is 15^/lb.
2. Production of the required TTCB isomers is not economically feasible. Efforts should be directed toward locating alternate
materials for TTCB blend users.
5. DCB improvement work in conjunction with a TCB facility is not economically justifiable. The only justification for any concurrent DCB work would be as a hedge against press failure.
Recommendations
1. Research work is needed to develop a stabilization step which is sufficiently effective in free chloride and catalyst removal. Methods to be considered should include caustic washing, flash stabilization, and flash stabilization along with monochlorobenzene crude.
2. Quality problems must be resolved. Specifically, the effect of 5 to 500 ppm of sulfur in the catalyst feed to the TCB reactor on the TCB isomer split must be quantified.
r.
oSNN 299086
STLCOPCB4068998
STLCOPCB4068999
STLCOPCB4069000
r
STLCOPCB4069001
I
APPENDIX a
J STLCOPCB4069002
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----
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p--'i-j.^ j
Lik;i -*%*> & 1.0CVJOS J- R. Savage ~ General Offi, ce ^
fVjrr
IT
August 27/' 1570
Messrs. ........ W.R. Richard
....... : .
r G C. Kamenko KESPING WPfK HOOKER ON TC3 &.'.22?CBiuriu,J\ J..3Holsapfel-.
``
. ?. G. Benignus
. ' . ' - . .
.; a). 3. Hosmer
' , ; ''' ^--3. ta:. Corlev;. . WGK Plant
TO er. H. S. Bergen
. ' - ' ... . . ... .
General Office
'
'
.'
y.
,.'j :' '. .a; Vy - -
; y.v ;.yy? -jj'
' ....
On August 25, 1S70, Cue Kamenko, pill'Richard and I visited
Hooker at Niagara Falls to discuss supply problems with the
subject raw materials for Pyranols and Inerteens. , ;
SUMMikY_
-:
. ..
.'
1. Our supply of -GTCB is completely dependent on the
.
: hexaehiorophene market novr that 2,k, p-l1 is dead.
-
(Teny Sweet of P&F Marketing does net believe that*
;
consumerism is likelj' to seriously hurt the hexachloro-
phene market).
; .
<s
. . .
.
.'
2. l Our supply of 'r.CB at the current price is dependent on
the 3HC. market which is now mainly in exports to developing
countries as an insecticide (Lindane). However, TCB could
: still be made if the market.would stand a price in the
15~19P 'range, even if Lindane wire not available.
.
. .. --I**-"*'-. /
.
:--
\
?
:vv--:v-'
'i
O Mr* H. S. Bergen . ' - - .
.
Meeting With Hooker On TCB & TTCB
' Page 2
j
.
: ? `- -f' '-i
-' . .
DETAILS (Cont c)
Hooker has previously run at about 5*9 chlorine/benzene but
now has to back off with the
5 market reduced.- They
"recycle mono and dlchlorebensones. The chlorination
products contain no dioxsnes but a substantial amount is
formed in the caustic hydrolysis to make 2,4,5 trichlorophenol
for hexachlorophene. They vehemently stated that no
dioxano is present in distilled 2,4,5 trichlorophenol; all
of it winds up in still residue,
.Surprisingly, they have
no toxicity data on TCB or .TTCB.
The chlorobenzene and BKC processes are integrated as follovzs:
f-*.Tf A.y
tt 3s
/jy_ |
r
I
i
*:
fc
: The pound figures are amounts needed tcmake one pound of ;
' TCB plus one pound of TTCB. Of course, our requirements for
- TCB are much higher than for TTCB, In the BKC process the
' benzene is carried to the hexachloride level and the gamma
isomer (Lindane) is isolated. The remaining hexachloride
is subject to "destruction-distillation" (thermal dehydro-
. chlorination) to make TC3. If the Lindane market should dry
up (it is-sold for. mosquito control in developing nations
- : and mosquitoes develop a tolerance rapidly) the same flow
r(imy o^she&t ;.could be ,run, but TCB prbing would have to support speculated that the
j. increase might be ih.
'`
to agree.
- -- -
.y .
. .**
. ..
DSW 299092
STLCOPCB4069004
Mr. H. S. Bergen
., '
Meeting. With Hooker On TCB & TTCB
Page 5
:::\
x 0 '
P5TAILS (Cont'd)
' . 5 '
*-- r /.
-
; . ' - ' ; y
r` _
./ .-
The dependence on the hexachlc nophena market could be relieved
if an application for "several million" pounds of 1,2,4,5 or
the "polychlorobehsene'* material were developed. I speculated
that -'pplr/chlorobensene might be pretty cheap but got little
response., except an admission that the excess is being
incinerated. The 1,2,4,5. sells for 22^/lb. They will send :
5-gallon samples to Bill Richard.
. 1,
.."While Hooker generally attempts to keep a car loaded with ' TTC3, they have no storage. They know of no technical reason
why they couldn't store it. I believe this is contrary to what we have been told before. The problem really is that they don't want to cut capital into this flow sheet.
TJce specification on 1,2x3,4 tetra in TTC3 (26# min) sometimes
makes them miss shipments to us. G. 2. accepts TTC3 containing
less than 25# 1,2,3,4 although they have the same formal
."
spec. I believe that the reason for the 26# minimum is a
need for total tetra for viscosity while avoiding the
crystallLnity of excess 1,2,4,5. If we wrote a more
complicated spec which permitted 1,2,3,4 content down.to
.
25 or 24#, provided certain other conditions were met, we
would probably get better service from Hooker.
\. .
'We looked at their residue incineration system. The design
has scmp cost advantages which might be useful to us long-range.
There world be no way to demonstrate it in time for our Arcelor
project,, however, since if runs at 1200? and can go to'a
maximum of 1500? with present gas supply, controls,.
'
refractory, etc. There was an oily scum on the surface of
: the scrubber effluent indicating that combustion was not always
STLCOPCB4069005
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APPENDIX B
ft
bSnN 29909* STLCOPCB4069006
TCB MANUFACTURING COST CALCULATIONS
A. Raw Material Usages
' . - :........ Bz 4 5C12
Mw 78.1 215
Theory Use 45.1
127.2
TCB + 3 HC1 181.6 109.5
100 60.2
Theory
Yleld/Recov.
Std. Use/Cwt. TCB
Benzene Chlorine
45.1 117.2
95# 94#
45.4 125.0
HC1
60.2
85#/.94
54.5
Raw Material Prices
1. Benzene 1971 Std. Pool Price
2.894^/lb.
2. Chlorine 1971 "
""
$51.54/ton 2.577#/lb'.
O*
5. HCL 1971 Std. Credit
1.550^/lb.
Raw Material Cost
Benzene
45.4 lbs/cwt x $.02894 =
$1.510/c wt
Cl2
125.0 "
X .02577
5.220
4.530
i HC1
54.5 lbs/cwt. x .01550
-.732 (-)
D. Other Costs
`
1. Utilities base 5 & 10 H lbs. TCB/yr.
..........
a. Steam
5 M 10 H -
Stabilizer DCB Stripper Column TCB Clean-up Column
Spent Steam $4200 5550
i -- . '... -
Spent Steam $6000/mo.
4800/mo.
r\ $7550
$i0,800/mo.
DSW 299095
STLCOPCB4069007
TCB Manufacturing Cost Calculations (continued)
b. Electrical
........................
_
5 H lbs/yr 10 M lbs/yr
Reactor...' - v';'~ Stabilizer DCB Stripper Col. TCB Clean-up Col.
$ 340/mo. 340 260 60
$ 440/mo. 440 330 90
$1000/mo.
$1300/mo.
c. Total Water
$ 270/mo.
$ 390/mo.
Total Variable Utilities $/foo. $8820/mo. $12490/mo.
Total Variable Utilities $/Cwt. $2,125/cwt. $1.505/cwt.
d. Other Fixed Costs
5 K }.bs/yr 10 M lbs/yr
Labor
$5000/mo.
$5000/mo.
Mech. Expense
6500
63OO
Depreciation
5000
5000
FIE
5000
5000
c Other i-
STOP *
6700
Total Other Fixed $/Mo.
$28,200/mo. $28,200/mo.
Total Other Fixed $/Cwt.
$ 6.80/cwt. $ 3.400/cwt.
E. Total Manufacturing Cost - TCB
3M lbs/yr
10 M lbs/yr
Raw Materials Variable Utilities Other
$3.798/cwt. 2.125/cwt. 6.800/c wt.
$3.798/cwt. 1.505/cwt. 3.400/cwt,
Total
$12.723/cwt. $ 8.703/cwt.
F. Profit From Additional Muriatic Acid Sales
1. 218 Acid Mfg. Cost
'' \
-
HC1 Gas Carbon
100 lbs/cwf. 1 lb/cwt.
$.0135/lb. *2867
Utilities
: Lab
' V/ - - -r . - -
$1,350 cwt. .287
1.637 .004
.043
$1.684/cwt.
299096
DSW
STLCOPCB4069008
' TCB Manufacturing Cost Calculations (continued)
. Page 3
Acid selling price $27/soln. ton $85.75/100# ton Freight to Chicago $8.58/soln. ton $26.65/100# ton SARE at (5.9# of sales) 1.59/soln. ton $5.06/
100# ton Manufacturing Cost
$4.280/cwt 1.333 (-)
.253 (-) 1.684 M $1,010
!;
Profit beyond by-product credit
$1.0l/cwt
Profit/cwt. TCB ($1.01)(109.6 lbs. HC1 ) = .........181.6 lbs."TCB
$.608/cwt
G. Savings and New Earnings on Producing TCB vs Purchasing/Cwt.
1. Case of 5 B lbs/vr produced (
) . loss.
TCB purchase price
$ll,000/cwt.
Manufacturing cost
(-) 12.723
(1.723)
NCI additional new earnings
.608
$15,000/cwt. (-) 12,723
li.2?t .608
Total savings & new earnings ($1,115 )6wt.
$2.885/cwt.
2. Case of 10 R lbs/vr produced
Purchase price TCB Manufacturing cost
HC1 additional new earnings
m .
$11,000/cwt. $15#000/cwt
(-) 8.703
(.) 8,703
2.297
6.27
.608
.608
$. 905/cwt.
$6.90$ /cwt
H. DCB Manufacturing Cost 1. Raw materials
.
Old Equip. $ 2.7o3/cwt.
New Equip. $ 2.763/cwt.
2. Utilities Steam Elec. Water
.109 .038
.101
.489
.049 .054
. 3. Other fixed
^
Labor M?ch. Expense Depreciation FIE Other
.960 .605 .216 .761
1.024
.543
.543 .652
.978 .684
Total manufacturing cost
$6.630/cwt.
$6.731/cwt.
/)
DSV\I 299097
STLCOPCB4069009
. ' \^-
/*%.. : C- -'J-..
v ...- .-.v............................ -
' . - . -
.... -* -
-v -
' - ' .. . . . -
TCB Manufacturing Cost Calculations (continued)
J
Page 4
I. DCB Earnings
......... Net back PDCB $/cwt. . Mfg. cost............
$8.500/cwt* $8.000/cwt.
6,630 ..
6.731
DCB earnings $/cwt.
$1,870
$1,269
*50-50 molten - block sales.
J. Capital investment for TCB and TCB/DCB
TCB plant sized for 10 M lbs/yr.
Existing DCB Facilities New DCB Facilities
.
$804,000 -0
10,000 10,000
5,000 160,860
$989,860
$804,000 1,359,500
10,000 10,000
5,000 385,860
$2,574,360
Plant & Equip. TCB Plant & Equip. DCB Raw Mat'1 Inv. Finished Goods Inv, Other Contingency 20#
Capital total
65,000 $1,054,860
75,000 $2,649,360
Expepse Expenditure Total
K. Book and total asset values for surviving department.
Existing DCB Facilities New DCB Facilities
$964,860 529,227
$1,4<^;5_87 (-) 33,252
$1,460,835
... .ifrc.. .
$2,549,360 -0-
(-) . ..7--0-1
$2,549,360
New Capital (fixed) Existing Equip. Asset
Value Exist. Equip. Asset Val
$ Total Dept. Asset Val.
$ 964,860 90,674
$2,549,360 -0-
New capital (fixed) Exist. Equip. Book Val.
$1,055,534
$2,549,360
Total Dept. Book Val.
Total savings and earnings for TCB and TCB/DCB
,
Old DCB facilities -
*, \
TCB plant sized for 10 M lbs/yr.
-
n
oS
STLCOPCB4069010
' TCB Manufacturing Cost Calculations (continued)
Page 5
->-u. ; vVi
1. 5 M lbs TCB producedy
( ) = Loss
Purchase Price TCB $/Cwt. $11,OOO/Cwt : - $15,OOO/Cwt.
Savings & new earnings TCB $/Tr
($55,700)/yr . $l44,000/yr.
Earnings DCB $/yr
4- 206,000
<4206,000
TCB/DCB before tax ineome/yr
$150,500/yr.
$350,000/yr#
ROI Calculations
a. TCB BT ROI TCB Savings & new earnings over TCB
capital
j(5.64*)
14.6*
b. BT ROI TCB/DCB Income on total assets value.
10.3*
23.9*
c. BT ROI TCB/DCB income on total book value
14.2*
33.2*
2. 10 M lbs/vr produced
ft .
C Purchase price TCB
$11.OOO/Cwt.
15.OOO/Cwt.
Savings & new earnings TCB $/yr
290,000/yr
$690,000/yr.
Earnings DCB $/yr
+ 205,000/yr
4 205,000
TCB/DCB BT income .
$495,000/yr.
$895,000/yr.
ROI Calculations
a. TCB BT ROI TCB savings & new earnings over TCB capital.
29*2#
69.7*
b. BT ROI TCB/DCB income on total asset value
33.8*
61.3*
c. BT ROI TCB/DCB income on total book value
47.8*
|- '.
84.7*
r)
DSW 299099
STLCOPCB4069011
` ^ Jfc- ...
-- -
:. ^ `
' -
t ' .-TCB Manufacturing Cost Calculations (continued)
Page 6
M. Total Savings and Earnings for TCB and TCB/DCB
New DCB Facilities
TCB Plant Sized for 10 M Lbs/fr
1. 5 M Lbs TCB Produced Purchase Price TCB $/Cwt
(Loss) $11,000/Cwt
$15,000/Cwt
Savings & New Earnings TCB $/fr
($55,700>/yr. $144,000/yr.
Earnings DCB $/7r.
$140,000
*$140,000
TCB/DCB BT Income $/Yr.
$ 84,300/yr.
$284,000/yr.
ROI Calculations
a. TCB BT ROI. TCB Savings & New Earn over TCB Cap.
(5.6
14.6$
b. BT ROI TCB/DCB Income on Total Asset Value
C c. BT ROI TCB/DCB Income on Total Book Value
3.30$ 3.30#
11.2% 11.2%
2. 10 M Lbs. Produced
Purchase Price TCB$/Cwt.
$ 11,000/Cwt.
$15,000/C wt
Savings & New Earnings TCB/$/fr.
$290,000
$690,000
Earnings DCB $/7r.
-f 140,000
+ 140,000
TCB/DCB BT Income $/5fr.
$430,000/yr.
$830,000/yr.
ROI Calculations
a. TCB BT ROI. TCB Savings & New Earn, over TCB Cap .
29.2%
69.7%
b. BT ROI TCB/DCB Income on Total Asset Value
16.9%
' 32.5%
c. BT ROI TCB/DCB Income on Total Book Value
( Reaction
Bz + 3 Cl2 -- TCB + OHCl
78 213
181
109.5
16.9$
ii : 2ZM *
osVi aa*100
43.1 117.7
100
---y-S-
60.5
STLCOPCB4069012
TCB Manufacturing Cost Calculations ^continued)
Page 7
Ben Cl2
Theory Use 43.1
117.7
Yield 95# 94#
Std. Use 45.4
125.0
By Product Credit
HCi
60.5
85#
54.6
Std. Price. .02894 .82577
.01?50
Unit Cost 1.515 3.210 4.525
-(.727) 5.798
ft
.. -*:
' .;
''v . -
qSW 2991 O*'
r"r '
'_
STLCOPCB4069013
STLCOPCB4069014
APPENDIX C
:XV'- . :' * A:'
v -Av-;-.-
DSW 299103
STLCOPCB4069015
* *' Page 8
TCB FACILITIES Installed Cost of Major Equipment
-
Reactor
..........
Stabilizer . .. ...
"
Reboiler & Pump
Stabilizer Residue Tk.
Reboller & Pump
DCB Column
Installation at 55#
Reboiler & PUraps
TCB Column
Installation at 55#
Tanks - 5 at 25,000 gal. ea.
ff
Piping at 40#1 Electrical at 15# Yard Improvements at 10# Control Room Mod. at 5# Pumps Economizers Prehe&ers, etc.
Contingency at 20#
Total Capital
.
$56,500 50,100 18,200 12.700 4,400 74.000 26.000 25,200 68,000 24.000 75.000
$414;$00
165,000
62,000
41,400
21,000
100,000
$804,500
160,860
$965,160
are percentages of Installed major capital.
oSV\f299A04 STLCOPCB4069016
NEW DCB FACILITIES
Para Column Installation at 45$
Crystallizer 4 Tanks at 35*000 Ea.
Heat Exchangers,Economizers, etc. Steel Work & Loading Dock
Piping at 50$ Electrical at 15$ Yard at 10$ Control Room at 5$
Contingency at 20$
Page 9
$57,500 40,000
262,000 140,000
75,000 25,000 629,500 315,000 95,000 63,000 32,000 $1,134,500 225,000 *1,559,500
k: DSW 299105
STLCOPCB4069017
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STLCOPCB4069018
DSW 299107
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STLCOPCB4069019
o
APPENDIX D *
(
I DSW 2"108 STLCOPCB4069020
t kPRODUCTION COST STANDARDi
PUNT Airbee M:fa ii-t r/njo
h&ctt. / 7~//TS Page
of
PRODUCT:-
PRODUCT CODE:
Effect ive
o. DAY TR DIV. LOC. DIV LOC. C.CTR PRODUCT
TYPITYPI NO.
UNIT COST
EQUIPMENT USED
4* 5 6-7 8-11 12-13 14-17 18-20 21-25
1-3
4-25
26 27 38-40 41-43 ! 44-48
Dept. No. ;
Percent
1
CAPACITY:
c OST UNIT:
/ m //fr
DUPL. COLS. 4-25
BLK. INV. STD. CR5
^9% PjCC/j\
INTO ALL CARDS
030 034 045
DUPLICATE COLS.U.25
_ INTO ALL CARDS
P-F
I
BRACKET 1 INV.STD. UNIT COST
BRACKET 2
DAYS UNIT STD. DAYS
QUANltY
BRACKET 3
DAYS
QUANITY
BRACKET 4
DAYS
QUANITY
1-3 CR6
4-25
T I
PRODUCTION BKT.'QTY.
PRODUCT COST
EX CL
27 34 36-38 i
3010
39-46
AMOUNT
47-49
1 1
UNIT
cp| COST
50-57
?2o OOo
58-60 1 1 1
UNIT
AMOUNT CR COST
61-68 --
--
69-71 I 1 1
UNIT
AMOUNT
CRj COST
72-79 --
AMOUNT
Material Cost
0
2PM 2^oo
. DO .
NOT KEY PUNCH THIS 5ECTICN
Steam Electricity Comp. Air Water*Purch. Water-Pit. Fue 1-Gas
Fuel-Oi I
530
533
536
539 0
542 \A
545
546
-VX.QO
m 9SQ
km L
oisi
P-F
1-3 DUPL. COLS. 4-25
CR8 Labor-Mfg. CR8 Salories CRB Payroll OH CR8 Factory Supplies CR8 Packing Labor CR8 Pocking OH
cboratory
CRfe- Cloth & Loundry CR8 Tech. Service CR8 Pit. Proc. Res. & Del. CR8 Waste Disposal CRB Tank Car Storage
26-28 36 37 38 <7\ 570
575
578
590 601
603
B610
614
H621
/
48-55 /
TI
-4-4-
44-
A
661 687
56-63
C63RJ
P/3 5"Pear
13/ f 2r>n
L2L /209
m
oil /(SO
m 3c6o mi
(64-71/
172-79
CR8 Mechanical Exp.
694
m .^Qo.D
CR8
CR8
CR8
CR8
CR8 CR8 Total Direct Conv.
01
CR8 Depreciation
CR8 Factory Indr. Exp. CR8 Teiiel litJr. Exp. CR8 Total Product Cost CR8 Total F & B Cost
Totol Variable Cost
698 760
(oOdet
mi 9 Oo a
im u 9 ro
V *3! Vfid 2>AZg_0_
i_3l32i_2^a
. ", |
L.ABOR/UTILITY
SERVICE
;
EXP UNIT CL
STANDARD UTL. PRICE
BRACKET
BRACKET
1 ICR 2
BRACKET
CRl 3
BRACKET era 4
CR8 DUPL.COLS. 4 >25
26-28 36 37 38
39-47
48-55
55 56-63
63| 64-71
71 72-79
CR8 Labor CR8 Laboratory
Hrs. 570 Hrs. 610
CR8 .Stean
MBTU 530
icnElectricity
~ompair
CKWH 533MCFT 536
X
CR8 Water-Purch. CR8 Water-Pit:
CR8 Fuel-Gas CRB Foel-Oil
MGAL 539 MGAL 542 ffiBTU 545 MBTU 546
DSW 299109
STLCOPCB4069021
STLCOPCB4069022
