Document baYL1dE3QNbEKaMDwQY8gevkZ
MONSANTO CHEMICAL COMPANY Texas City, Texas
June 12, 1962
cc: J. M. Chamberlin W. R. Nisbet G. T. Ryan
C. P. Fullerton L. B. Bullock
T. E. Shirley -Jh" L. Price
To: W. F. Zimmermann
Subject: Cost of Out-of-balance VCM
The VCM plant is presently running out-of-balance due to the lack of acetylene to meet requirements of both AN and VCM. This type of operation increases the cost of VCM in several ways: (l) chlorine must be purchased at a premium (out-of-balance with company-wise NaOH usage), (2) an extra chlorine barge must
be rented, (3) excess acid must be dumped with loss of raw
materials in addition to dumping expenses, and (4) acid absorber maintenance cost is excessive. An analysis of the incremental cost of producing out-of-balance VCM has been made to show the relative effect of the various cost factors.
/earn Att.
J. W. Kongable
CBY 1019447
RSV0031741
1
SUMMARY
Cost to deliver 8.0^/lb. VCM made out-of-balance from premium
price chlorine while dumping acid. (if acid could be sold at
$6.00/ton, the costs would be reduced by 1.12^/lb. VCM).
ft
Total pounds made Customer: Shell
1MM 2MM 3MM
4 lib 7*37?S/lb$.k3
7-02^/lb.1^
6. .90^/,lb. I'
7-49
3,fi 7.14 .9L
7.02
/)
Velsicol Cary
/ \',b
Escambia
Vv ^ -} *\ & 4/T^.Tlrestone
7.52 7.57
7.61
7.69
Mi 7.17
cM 7.22 O.Vj 7.26
0-11 7.34
7.05 .78 7.10
7.14
.u. 7.22 b,7 *
is:
Chlorine at $59.30/ton delivered CaH^ at 4.734^/'lb.
Acid dumping cost $6.00/ton acid Excess maintenance $7,000/month (fixed)
Freight - our share of equalized freight
Chlorine Cost Out-of-balance CI2 (85$ of market price) Trip-lease of vendor's barge
$/Ton 55*50
3*00
Towing charges
.80 $ 59.30
Cost/lb. VCM:
126 lb. Clg x $59.30
100 lb. VCM 2000 lb. Cl2
= 3.7Wlb* VCM
(assuming the acid made is dumped, none of the
Cl2 value is recovered)
CBY 1019448
RSV0031742
Ethylene Cost;
Co st/11. VCM:
CgHjj. x 4- 734^
= 2.37flf/ib. VCM
1O0 lb. VCM
lb. CzH4
Acid Dumping Cost
Dumping cost is $6.00/ton of acid based on average cost in 1957-
46.00 2000 lb. Acid
x
187
100
llbb-!
VACcMid
_
,,0.5rs6-j^//1lb1. . VCM
Excess Maintenance Cost
Acid aTosorber maintenance averages $7,000/month.
figure varies only slightly with rate.
47*000 1 MM lb. VCM
= 0.7^/lb. VCM
This
47,000 2 MM lb. VCM
= 0.35^/lb. VCM
47,000
3 MM lb. VCM
= 0.23^/lb. VCM
Freight Costs
Our cost of freight for each customer is as follows:
Shell
4/lb. VCM 0.0
Great American
0.12
Velsicol
0.15
Cary Escambia Firestone
0.195 0.235 0.315
6/12/62
CBY 1019499
RSV0031743