Document dQd4EmbVneLEeBr5VkJ36nn36
From The Desk Of B. G. WITHERSPOON
N12484
Request For Capital Expenditures/Retirements
DIVISION OR COMPANY
Organic Chemicals Division
J.O. CONTROL POINT
0 >' 1
Chicago Plant
JOB TITLE
097
Pnrrhasp anrl 'insfal 1 RllDPr Sank semi-bulk material handling system.
REPORTING CLASSIFICATION
DATE APPROVED
JOB ORDER NO.
SUMMARY OF AMOUNTS
DESCRIPTION
LOCAL CURRENCY
ESTIMATED PROJECT COST
DISMANTLEMENT EXPENSE
U.S. DOLLARS
$81,340
TRANSFER EQUIPMENT GROSS AMOUNT FOR APPROVAL
$81,340 |
LESS TRANSFER EQUIPMENT LE,SS SALVAGE OR TRADE-IN ALLOWANCE
NET CASH REQUIRED (COP - 3027)
_81^ 340 J
RETIREMENT DATA
c o s t _____________ DISMANTLEMENT LESS SALVAGE
TOTAL - CHARGE RESERVE DESCRIPTION AND REASONS REQUIRED
ECONOMICS as called for In General Procedure Memo #3
Attachment C. (Attach calculations)
ECONOMICS PERIOD NET SALES NAT (p r o rit /s a v in g s ) TOTAL INVESTMENT 7 RQI (o h t o t a l in v e s t .) INTERNAL R AT E OF RETURN PAYOUT OF NEW FIXEO CAPITAL
EV-#
t
_2
3 4
5
6
7
REVISION DETAIL (c r o s s a mo u n t s )
DATE
AMOUN
CUM AUTHORIZATION
Funds of-----------------------------------------------------------------------;----------------------------------------------------------$81,340 are requested to purchase and install a semi-bulk packaging system for Cyastab heat stabilizers. Included with the purchase of this system will be 200 - 35 cu. ft. PVC bags at a cost of $250 each.
SUMMARY OF ESTIMATED COST - Details on GGF-3G27
ITEM NO.
DESCRIPTION
ESTIMATE NO.
Per attached estimate
STARTING DATE
COMPLETION DATE
when approved
MATERIAL
"LABOR
ENGINEERING
TOTAL
*
ITEM NO.
NET CASH REQUIRED
75.270 . 15,970 100
ACCOUNTING TREATMENT
APPROVALS
DEPR. RATE PROJECT
NAME SOB
' A
J ACCOUNTING TREATMENT / ECONOMICS APPROVED BY DIV. CONTROLLER CH E C K BO X ( E SJJ
i
J `--V
*--1
DATE
s POST AUDIT PERIOD
\
P.OST AUDIT DUE DATE
' " " DIVISION PRESIOENT/DIRECTOR
: DISTRIBUTION
----I CO RPORATE 0 FTl CER
81_34D___
DATE s/lj/go
}*// /
, CYWI 24-000632
Proposed Work and Cost
Funds of-------------------------------------------;--------------------------------------------------------------------------------$81,340 are requested to purchase and install a B.A.G. semi-bulk packaging system for Cyastab. Included with the purchase of this system will be 200-35 cu. ft. PVC bags at a cost of $250 each.
Present Situation
Lead stabilizers, budgeted for sales of M7.85 pounds in 1980, are packaged 50 pounds in a four ply kraft paper bag, and shipped 2000 pounds per pallet (40 x 50 lb. bags).
As a result of government regulations regarding airborne lead dust concentrations and disposal of any lead contaminated materials such as bags and pallets in land fills, our customers are now looking at alternate methods of receiving and handling lead stabilizers.. These methods include semi-bulk systems, plastic bags and drums.
Our competitors are currently offering lead stabilizers packaged in paper bags, air pallets, and semi-bulk bags.
Justification
The Chicago Plant has been advised by sales of the loss of business if Cyanamid cannot offer semi-bulk containers (see attached letter)
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%)
Year 1979 Actual
Sales-Pounds
Sales-Dollars
Profit on Sales
8.251.000
$5,926,000
1.553.000 (26.2%)
CYWI 24-0006327
Details of Proposal Purchase a B.A.G. serai-bulk stabilizer packaging system for filling a 35 cubic foot (2000 lb.) container, manufactured by the B.A.G. Corp of Dallas, Texas. Filling system consists of a bag support, automatic cut-off scale, conveyor, and associated controls. Purchase 200-35 cubic foot PVC bags from Helios Corp., the supplier of the semi-bulk bags at Hammond Lead. Install an unloading system to handle a 2,000 lb. semi-bulk container which may be returned by the customer due to quality problems or dis continued use.
Production Factors This proposal will not alter product quality or production rates.
Contingent Future Commitments This proposal will not require additional funds to complete. However, other types of packaging systems, such as air pallets, may also be required.
Alternatives ConsideredNo alternatives were considered since our customers have stated that we must ship stabilizers in 2,000 pound bags or lose their business.
Risks Returned bags from customers will contain lead dust which may offer problems in the plant regarding exposure and disposal.
Concise Summary The purchase of a portable stabilizer filling system will offer our customers an alternative in packaging and retain those customers who have switched to this system exclusively
CYWI 24-0006328
GOF-`;C37 R^V. 7/62**'"* 7/62
A*
De t a il s h e e t
ua.fe.
SHEET NO.
JOB ORDER NO.
COMPANY
American Cyanamid Company
ITEM OR
CODE NO.
DESCRIPTION
LOCATION
4500 W.
March 11, 1980 15th Street, Chgo,lil.
60623
EQUIPMENT OR
MATERIALS
ENG. MECH.
SVC.
1 Fill/weigh station 2 Powered screw conveyor 3 Electrical 4 Piping 5 Freight
6 Tax
7 Container bags
8 Unloading system
15,286 4.000
1.000
500 400 3,584 50,000 500
70 2,000 2,000
400
1,500
100
15,456 6,000 3.000 900 400 3,584
50,000
2.000
75,270
5,970
100
81,340
CYWI 24-0006329
