Document Qv0b29ZpOj0N6GV5KDYkKJQR

CAPITAL PROJECT Auffldl R-1-7 (Rev. 80-08) COMPANY Reynolds Metals PROJECT TITLE Ol VISION Raw Materials PROJECT DATE 12/9/91 PLANT OR LOCATION Sherwin RELATED PROJECTS PROJECT NUMBER IQ RFI NO. L0 92-C-5 SOURCE OF FUNDS Capitalized Major Maintenance Repair Plant Insulation - Phase VI 1992 Capital Budget SECTION A - PROJECT DESCRIPTION This request covers'capital maintenance funds to proceed with Phase VI for repairs of plant insulation. The insulation to be replaced was installed prior to 1967 and is predominate asbestos. Due' to climatic conditions, the original insulation is in need of repair and asbestos replaced. Early approva.11 is requested for continuation of an existing program without contrac tor interruption thereby.avoiding additional costs. SECTION B - SUMMARY FINANCIAL INFORMATION Complete Stem X for required information as transcribed from tn RFi attached to this authorization and indicate II original or revised. If the attached RFI is not the orgtnlal, also complete items 2 and 3. 1. ATTACHEORFI Ongraf 2. ORIGINAL RFI OeteNeeend . AMOUNT REQUESTED - FACILITIES CAPITAL 1,500,000 - WORKING CAPITAL - OTHER AVERAGE YEAR PROFIT (LOSS) FINANCIAL VALUES - ROI - |RR ( 99,000) (6.6) 3. REASONS FOR CHANGES: - PAYBACK PERIOD YEARS YEARS SECTION C - ESTIMATED EXPENDITURE SCHEDULE FROM APPROVAL OF PROJECT - FACILITIES CAPITAL Month 1 - s 100,000 Quarter 3 -- $ 100.000 Year 3-- $ 2- 200.000 3- 200.000 s- 1 o0t o 1 4- 5- 100.000 6-- Balance -- 5- 100.000 t ____ ir_____ inn, non_____________ 1 7- 8- Total S 1,500,000 SIGNATURES DATE RICHMOND OFFICE SIGNATURES,^ PVANT ,- ________ '</?/?, ta/t/v L&-- j>. oetccrow oustnai 90NSNNG DM$N OPPUTWNS MANAGER / UtMTOMCf SUPBWTBeeft / / // ' QIVtSON ADMMSTttATIVC And CONTROL MANAGER jX_____ /l44/ onnsxM MCE ntESoerr GROUP MCE nesoerr RNANCE DATE < j ! , | 1 TX T1NER RMC0039447 FACT SHEET PROJECT TITLE - REPAIR PLANT INSULATION - Sherwin Alumina Plant PLANT DESCRIPTION The Sherwin Plant located near Corpus Christi, Texas, produces alumina for consumption by Reynolds' North American reduction plants and for outside sales. The plant extracts aluminum oxide from bauxite by a high pressure, high temperature process that for reasons of safety and energy conservation requires process vessels and piping to be insulated. The initial plant digester units were installed in 1953 with subsequent expansions in 1957-59 and 1966. PRESENT SITUATION During the Sherwin Plant construction periods prior to 1967, vessels, tanks, heat exchangers, evaporators, piping and powerhouse equipment which required personnel safety and heat retention were insulated with asbestos. In the 20+ year period since construction, major portions of the asbestos insulation have deteriorated badly. To remedy the situation, Sherwin began a program of insulation replacement in 1986. In order to avoid the interruption of plant operations and because of the complexities associated with the asbestos removal, the work has been scheduled in phases. To date, five phases, at a total investment of $5.0 million, have been undertaken. It is estimated that an additional three phases, totaling $3.5 million, will be required to complete their installation replacement program. PROPOSAL The current contractor is scheduled to complete Phase V in December 1991. It would be economically prudent to continue the present arrangement and avoid the added costs and delays associated wih moving the contractor off and then back on the job site. Approval is therefore requested for the immediate undertaking of Phase VI of the Insulation Replacement Program ($1.5 million). CAPITAL REQUIREMENTS (inthousands) Facilities Capital - 1992 - 1993 - 1994 $1,500 $1,500 $ 500 (This request) $3,500 This project is on the '92 capital budget list. TX TINER RMC0039448 REQUEST FOR INVESTMENT R.1-27 IA*v. 80-06) DIVISION PLANT Raw Materials Sherwin PROJECT TITLE CATEGORY C 1992 Capitalized Major Maintenance Repair Plant Insulation - Phase VI PROPOSAL COOE AM (6.6) ROI ALTERNATIVE ESTIMATE NO. 5063 RFINO.. LQ 92-C-5 AMOUNT REQUESTED: % WORKING CAPITAL' TdTar % ^_ 1.500.000 SECTION A -- Present and Proposed Situation Analysis: Individual items will be in excess of the amounts established for abnormal asset maintenance expentures as amounts listed in Financial Planning Manual Section 3.1.4.1 Reference AM 6.20. This request covers those insulation repairs to equipment used for four digester unit : production that is 75% depreciated. The insulation under consideration was installed : when the equipment was erected prior to 1967. Asbestos materials were predominantly used. Climatic conditions have caused serious deterioration of the insulation. This ' request is for repairs of insulation and application of new weather coating where required on equipment that will be used for four unit production. This project is being submitted as a continuation of phased repair to plant insulation Since asbestos insulation replacement is involved, it is desired to expedite the repair program. Asbestos removal and replacement is most effectively completed in the winter, spring and fall. Consequently, cash flow indicates minimal spending in 3rd quarter. Justification: SECTION B - FmaneM Summary: 1. INVESTMENT DESCRIPTION FACILITIES CAPITAL WORKING CAPITAL CHANGES % OTHER TOTAL 2. AVERAGE YEAR NET PROFIT (LOSS) DEPRECIATION OTHER INCOME (EXPENSE) INCOME TAXES INVESTMENT TAX CREOIT (TOTAL* ASSET LIFE) TOTAL 3. ASSET LIFE -- NO. OF YEARS (USE SPACE ON REVERSE SIDE IF NEEDED) Proposal 1,500,000 0 0 1,500,000 Proposal ( 150,000) 0 51,000 0 ( 99,000) 10 Alternative Alternative 4. EST. CASH EXPENDITURE SCHEDULE FACILITIES CAPITAL is 92 19 iQ 500,000 IQ 2Q 300,000 2Q 3Q 100,000 3Q 4Q 600,000 4Q 19 19 IQ IQ 2Q 2Q 3Q 3Q 4Q 4Q TX TINER RWC0039449 i IBIS PORM IS PRZMTED 01 20% DUPLICATOR AID CAM Si UStD AS A MASTER POR 2$ COPIES OS LESS. ENGINEERS ESTIMATE < EQUIPMENT, MATED AL, AND LABOR FOR INSTALLATION REQUIRED) SUBJECT 1992 MAJOR CAPITALIZED MAINTENANCE - Repair Plant Insulation, Phase VI FACE - 1 of 1 OMTt 12-9-91 Sherwin PLANTiDEPARTMENT ESTIMATE no- 3063 Engineering ACCOUNT NO. DESCRIPTION OUANTITY UNIT COST ITEM COST 1.0 thr l 12.0 Not Required 13.0 14.0 thr u 19.0 MODIFICATION TO EXISTING EOUIPMENT; 13.1 Fac 30 - Digestion 13.2 Fac 33 - Mud Settling & Washing 13.3 Fac 35 - Filtration 13.4 Fac 42, 45, 50 - Evaporation, Precipitation Calcination Not Required 20.0 Taxes 21.0 Engineerine 22.0 Contingency TOTAL It is estimated that the start-up of this project will take place months after approval of the Capital Project Authorization. h 0 CL/ Plant Engineer 4 lot lot 200,000 lot lot 500,000 lot lot 100,000 lot lot 450,000 lot lot 60,000 lot lot 90,000 lot lot S 100,000 $1,500,000 TX TINER RMC0039450 * ''' ENVIRONMENTAL CHECKLIST PLANT * PROJECT DESCRIPTION: IZirpA!*. P/A^r RR NO. i-Q ?Z`d~~ 1. GENERAL New installation? Capacity change? Agency notification needed? 2. POLLUTION A. Effluents (Water) Change in flow? Control for spills necessary? YES NO /I I ./ [ 1 / IJ / / II IJ Is there an applicable new source performance standard? Added monitoring requirements? Other effects (fugitives, steam generation)? Added emission points? Removal/disposa) of asbestos? Change in pollutants? (Type/quantity/concemratbn) Thermal effect? Meet current standards? Appiication/permit required? (new or modified) Added -monitoring raqhnents? IJ II I 1 II 11 C. Solid Waste/Hazardous Waste Suitable tfisposaLmethod? PCB/oil involved? Appiication/permit required? (new or modified) Pollution prevention included in project? Impact on receiving stream? B. Emissions (Air) Change in voiume/rates? Change in pollutants? (Type/quantity/concemration) * II // IJ I1 Potential for reuse as product or raw material? impact on community? Change in nature and rate of generation? Effect on groundlevel air? Meet current standards? Appiication/permit required? (new or modified) Impact on neighbors/ complaints? I I 3. PRODUCTION CONSIDERATION Product new to location? -1 I IJ . * FDA requirements involved? Change inTaw materials/ additives? 11 TSCA compliance issue? NOTE: All checks within brackets must be addressed in Environmental Statement YES NO II II t1 1] t/ I ] /( 1 /[ 1 / I1 /I 1 /I I /I 1 [1 I1 I] I1 R-1--32 TX TINER RMC0039451 CAPITAL BUDGET DATA ENTRY SHEET n-aiT^s COMPANY DIVISION . ** netfA/o iJs //ler* Is /rfa / /s PLANT DATE Location P\M\0\O\d RF! NO. UqpMcid'. Project No. Budget Year 2L2 Misc. 0 New Investment in Facilities--Amount S Title of Project IftPIfl IPlUAMn m^:\K\L\A\r\i\<>M l-l Mil cmPteoiEriority I--! I 1Division.EtiOlity [~"1. Program . "RUIdtUU Project* Reference i I i Project Code Equipment qualifies for the additional 10% Investment Tax Credit under the Energy Tax .Act of 1978 ' EJ Working Capital Change $ Estimated Completion Days 1 13!& 1 Estimated Asset Life: SL 1$. Investment Tax Credit I /f, i, A I ROI %: HRR11 > 1RR Yield %: $ Pay Back Years Total Amount Requested $ Conformed Date iJJ Tax Net Present Value S NEW INVESTMENT IN FACILITIES Classification of Expenditures - Land Building Amount $ S jflle j 0 10 Machinery and Equipment % Investment $ $ iili \ I ( K i - l- l 10 to TX TINER RMC0039452 CENTRAL ENGINEERING CAPITAL PROJECT APPROVAL TRANSMITTAL No internal departmental approvals or comments are to be made on the official authorization transmittal. Approval/disapproval recommendations and associated comments are listed below: Plant sS______________________ RFINo. Description (C,< 'IaJi/ZslJL Routing: . 1?* ^ /c/tAt*c<l> ?z'" c" /"Amount $ 7S7) fit? ^-------- / 1. Division Engineer Date Approval ___________ Disapproval Recommended Comments 2. Dir. of Operations Engineering Approval _____________________________ Disapprov Recommended Comments A^1 3bz 44 d*o 3. Chief Engineer Date n/'t'f?/ APPROVAL.CAP % TX TINER RMC0039453